Tariffs will hurt U.S., not Canada
As someone whose inventions have brought in over 200 million export dollars into our country, I need to comment on the potential U.S. tariffs.
Fact: the proposed U.S. tariffs will not cost Canadian exporters one single cent. They might lose some sales eventually, but there are no up-front costs.
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As exporters, we get paid f.o.b. our loading dock. When that shipment arrives at the U.S.A. border, the U.S.A. customer has to pay the tariff — tax is a better description. Only then is the shipment released to travel to its U.S. destination.
That tariff tax is paid to the U.S. government. How that U.S. importer absorbs that cost has nothing to do with Canadian exporters. Usually, that added cost is passed down to the U.S.A. end users, which are their taxpayers. There’s no cost or hassle for the Canadian exporter.
I would say to our politicians — relax and ignore. That Iowa farmer is still going to buy our potash, and we supply 20 per cent of their oil. If you were a manufacturer of parts, which my company was, it takes months, if not years, to switch suppliers because there is so much due diligence required.
In the case of other products, the amount of time to build a factory, hire employees etc. is also years. What businessperson in their right mind would gamble that the next administration would keep these tariffs in place.
The U.S.A. simply does not have the manufacturing infrastructure nor the workers to take up the slack required to make up for Canada, Mexico and China imports.
There is no doubt that adding 25 per cent cost to imported goods will trigger inflation.
My message to our Canadian politicians is, there are 7.7 billion other customers in the world, and our resources are appreciating in value where they are.
The absolute worst action our government can take is to put countervailing tariffs on U.S. imports and punish Canadian taxpayers. That is just plain stupid.
What I have learned in my 72 years is, if you are in a conflict that you can’t win, shut up and walk away.
Brian Olson,
former owner of Power Pin
Fort Qu’Appelle, Sask.
