Canada ‘caught in crossfire’ between China & U.S., says business export

CGTN Europe

Tariffs against Canadian farmers from China will hurt large and small independent businesses and farmers, says Dan Kelly, President and CEO of the Canadian Federation of Independent Business (CFIB).   He told CGTN it would hurt a Canadian economy that was “running out of options” after Trump launched tariffs against it.

Transcript

00:00The Chinese tariffs are on several really critical sectors for our economy, obviously

00:06we are big agricultural product producers and that will hurt, not just large companies,

00:11large exporters, but tons and tons of small independent businesses and farmers. This is

00:17a big challenge for Canadian businesses and when you add the tariff threats from around

00:21the world, these are some pretty challenging days.

00:26Now these tariffs, as you say, apply to specific products. How will this affect the broader

00:31Canadian economy?

00:34Well look, given the US tariff situation, Canadian businesses are looking at expanding

00:39and looking at trade options elsewhere in the world. And of course Asia is a primary

00:45partner, of which China is a huge, huge section. And so for us, we're running out of options.

00:54We already have a small amount of trade with Europe that can be expanded, but my goodness,

00:59this is a big threat because we're getting kind of a one-two punch here with respect

01:03to tariffs. Some of the actions that we've taken towards China that have precipitated

01:08this are in part to try to align with the United States and their measures, but Canada

01:14seems to be caught in this crossfire.

01:16Well indeed, and as you mentioned, there are already these US tariffs lurking. Is this

01:22with China, this latest round, is this the new front in what is a trade war?

01:28Well look, the trade war is significant. Obviously the US market is just far more profound to

01:34Canada than is China, but depending on the commodity or sector of the economy, that can

01:40be different. But yes, having two of the world's major markets limiting access for Canadian

01:47exports as an exporting nation, that takes its toll.

01:52Your members, the businesses that you represent, what are you communicating to them? Are they

01:57being prepared for a prolonged economic standoff?

02:01You know, I will say there is this feeling of unity among Canadians that we need to push

02:09back and push back aggressively. And we're a very politically divided country right now,

02:15as many are, but it's interesting to see that Canada has come together in a way that

02:22in my lifetime I have not seen. So the sentiment towards unity is really, really high and that

02:30is a good thing. But our economy is not going to be able to withstand this without major

02:36damage if this goes on, and just the uncertainty over tariffs is taking its own toll on the

02:42business community. I mean, businesses like to plan for the future and it is hard to figure

02:46out given the US situation. We've had, I think, five tariff announcements where it's going

02:52up or going down depending on the hour.

02:54Yeah, clearly massive uncertainty. And the relationship with China is still very important

03:00for Canada. Do you think that relations can be improved, that it is very damaging, these

03:06latest rounds of tariffs, or can they walk them back?

03:09Look, we've been here before. We have had rounds of tariffs on certain commodities with

03:14China, with the United States or other trading partners. They're in place for a while, some

03:19degree of retaliation, and then calmer waters reappear. But right now with the United States,

03:25I think we're going to have to sleep with one eye open. Hopefully the brewing battle

03:31between the US and China doesn't create collateral damage here in Canada, but I worry very much

03:37that that's what's going to happen.

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