With U.S. President Donald Trump promising to unfurl wide-reaching tariffs across global trading partners Wednesday, one expert says some B.C. importers and exporters are already feeling the effects of ongoing trade uncertainty.
“It's created anxiety amongst Canadian companies, because nobody seems to be sure if this is actually going to happen in the long term,” said Greg Timm, president of Surrey-based Pacific Customs Brokers Ltd. (PCB).
He told BIV there is a feeling that Trump’s tariff threats could be one big negotiation point, or else there might be a few targeted items that the U.S. administration wishes to win.
Timm’s customs logistics company serves customers on both sides of the border.
PCB said in a Monday news release it’s been receiving hundreds of inquiries from businesses in both countries amid the tariff threats.
Timm said the volume of imports and exports between B.C. and the U.S. has remained stable since tariffs since the cloud of tariffs began hanging over the economy. He said more significant effects would take some time, as companies realign their clients and where they source their goods.
“It's starting to take a bite now and it's starting to have some tangible effects,” Timm said. “Companies that ordered things three weeks ago that are crossing the border, they're starting to see the surtax being applied to the products.”
PCB’s workload as a customs broker has also increased because of the tariff threat, with documentation becoming much more detailed. Businesses that imported duty-free products previously didn’t worry as much about the details of customs entry, according to Timm. That’s changed.
“Today, we had a client that ships the same truckload of product into Canada every week, duty-free. Today, the shipment garnered a $10,000 surtax that they have to pay,” Timm said.
He said he expects trading routes to eventually shift towards Europe and across the Pacific. And products imported to B.C. with high margins like tech products could have room to absorb the tariffs, while low-margin products like imported vegetables are more likely to be significantly affected.
