Tariff revenue to bolster beleagured firms, Duguid says

Manitoba’s only federal cabinet minister says diversifying export markets and fuelling innovation — two trade war-era buzz phrases — are on the Liberal government’s agenda even as it races toward an election.

Terry Duguid, MP for Winnipeg South and the minister responsible for Prairies Economic Development Canada, has spent the past week in Ottawa. During that time, the Liberals have elected a new leader, and tariff hits between Canada and the United States have intensified.

“We are, we know, too heavily reliant on the U.S. market,” Duguid said by phone Thursday. “We need to seek out new markets, and we will be doing that.”

Prime minister-designate Mark Carney’s campaign focused on growth and innovation, including trade diversification, Duguid noted.

Carney is slated to be sworn in as the country’s leader Friday and there’s speculation he may call a snap election. He’s expected to visit Europe next week to speak with partners. Meantime, a Canadian delegation that includes Ontario Premier Doug Ford and Finance Minister Dominic LeBlanc travelled to Washington Thursday to discuss tariffs.

U.S. President Donald Trump has imposed 25 per cent tariffs on a swath of Canadian goods that don’t meet rules-of-origin requirements under the Canada, United States, Mexico Agreement. On Wednesday, Trump placed 25 per cent tariffs on steel and aluminum imports.

Canada has retaliated with 25 per cent tariffs on a total $59.8 billion worth of U.S. goods thus far, including American steel imports.

Duguid plans to speak with Selkirk Mayor Larry Johannson in the coming days to discuss the city’s steel operations, which is its major employer. The feds have conversed with local companies and union representatives, Duguid said.

“We have committed to ensuring that the revenues from tariffs help affected businesses through this challenging time,” he said.

The private sector seeks clarity on what government supports will be available if tariffs persist, said Loren Remillard, president of the Winnipeg Chamber of Commerce. He used tax relief and potential wage subsidies as examples.

Ottawa announced a $6.5-billion aid package for Canadian businesses, and temporary changes to employment insurance, last week. Money will be earmarked for companies who’ve lost U.S. sales and are looking to new global markets. Loans, including those specific to the agriculture sector, are included.

Duguid couldn’t immediately answer what chunk of the package would be tabbed for companies in Manitoba.

“I suspect it’s on an ‘as need’ basis,” he said, adding Prairies Economic Development Canada’s website will have trade impact program details.

Remillard, like other business leaders, is calling for investment to build Canada’s economic resiliency. Focusing on productivity, trade infrastructure and market diversification is key, he said.

“We have committed to ensuring that the revenues from tariffs help affected businesses through this challenging time.”–Terry Duguid

“Let’s make those investments now… (to) lessen our dependency on any one market,” Remillard stated.

Many small businesses carry pandemic-era debt and may not be able to recover from an additional loan, said Tyler Slobogian of the Canadian Federation of Independent Business.

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Other ways to help companies, such as scrapping a planned carbon tax increase and extending the lifetime capital gains exemption, would be helpful, Slobogian said.

“Small businesses need help keeping the doors open,” he said.

More than $37.4 billion worth of goods trades between Manitoba and the U.S. annually, Canadian Chamber of Commerce data show.

— with files from The Canadian Press

gabrielle.piche@winnipegfreepress.com

Gabrielle Piché
Reporter

Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle.

Every piece of reporting Gabrielle produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.