U.S. President-elect Donald Trump's threat to impose a 25 per cent tariff on all products entering the country from Canada and Mexico is being met with concern from the Sarnia-Lambton Chamber of Commerce.
Trump made the comments on Monday, saying the tariff "will remain in effect until such time as drugs, in particular fentanyl, and all illegal aliens stop this invasion of the United States."
Chamber President and CEO Carrie McEachran said despite the threat, everyone remains unsure about what will happen.
"He's not the president yet," said McEachran. "The last time he was in office, there were some tariffs made but not all of the ones that he talked about. We're certainly hoping that will be the case again this time. Having said that, it certainly will have a huge impact on our local businesses if this 25 per cent tariff is implemented. We will see increased costs of importing materials, the supply chain disruption, the competitive landscape and having to compete with foreign companies if these tariffs are in place."
McEachran said economic growth and investment in Canada would take a hit.
"Will companies want to expand and invest here if that's the situation? The federal government really does need to step up and have their contingency plans in place," McEachran said "We can't just sit back and hope for the best. There needs to be some action taking place."
McEachran had some advice for local industry partners who would be affected.
"Start looking at your supply chains now, and conduct a review of what that can look like," she said. "Look at pricing strategies and keep informed about what is happening. Start advocating, go to the federal government and tell them the impact these tariffs are going to have if we don't put plans in place on our side of the border to ensure that this isn't happening."
On Tuesday, Prime Minister Justin Trudeau said he plans to meet with Canada's premiers this week to talk about Canada-U.S. relations.
Canada and the U.S. have an estimated $3.6 billion in daily trade, and 77 per cent of Canadian exports go stateside.
McEachran had previously called for continued unity between Canada and the United States following Trump's election win.
Trump will be inaugurated as the 47th president of the United States during a ceremony on January 20, 2025.
He was the 45th U.S. president from 2017 to 2021 before losing to current President Joe Biden.