Trump’s ‘Liberation Day’ address brings relief, uncertainty to Manitoba businesses Oval Office-directed economic penalties exclude goods covered under North American trade agreement, but details of reprieve clear as mud By: Gabrielle Piché and Martin Cash Posted: 7:17 PM CDT Wednesday, Apr. 2, 2025

U.S. President Donald Trump did not unleash sweeping 25 per cent levies he’d threatened to impose on Canadian imports on his self-proclaimed ‘Liberation Day.’

Still, Manitoba business leaders are proceeding with caution. And as of late Wednesday afternoon, it was unclear whether local firms would be free from the latest swath of U.S. tariffs.

Trump announced reciprocal tariffs for several countries, a 10 per cent baseline levy against its trading partners and a 25 per cent tariff on foreign-made vehicles.

“This is not what we would consider to be a strong relationship, but it’s one we continue to work on.”–Chuck Davidson

The U.S. administration released a document stating goods compliant under the Canada–United States–Mexico Agreement wouldn’t face tariffs. It’s a divergence from threats repeatedly made by Trump after his election victory in November.

Energy and potash not compliant under CUSMA will be subject to a 10 per cent levy.

Chuck Davidson, chief executive of the Manitoba Chambers of Commerce, watched Trump’s address Wednesday afternoon.

“This is not what we would consider to be a strong relationship, but it’s one we continue to work on,” Davidson said.

“This is a bit of a reprieve, but we still need to look at other markets.”

Diversifying trade partners was something he planned to bring up — as he has before — at a meeting with Manitoba’s U.S. Trade Council. The group was scheduled to convene shortly after Trump’s 3 p.m. tariffs announcement at the White House.

For the past month, Canadian imports of steel, aluminum and goods not meeting country-of-origin requirements under CUSMA have been hit by 25 per cent U.S. tariffs. Those penalties will continue.

Canada responded in March by slapping 25 per cent tariffs on a collective $59.8 billion worth of American products, including steel and aluminum.

Davidson will look for Ottawa’s and Manitoba’s next moves. Reducing interprovincial trade barriers, changing local procurement and fast-tracking economic projects to boost Manitoba trade with other markets is crucial, he said.

“It’s going to be key that we really start focusing on ourselves,” he said.

Small businesses have already been switching to Canadian suppliers where possible and delaying new investments, noted Tyler Slobogian, Prairies senior policy analyst for the Canadian Federation of Independent Business.

“At this point, uncertainty still kind of remains the biggest issue,” Slobogian said. “(Business) confidence is low.”

And, for some firms, the unpredictability fuelled by Trump’s threats has been more difficult than surviving the COVID-19 pandemic, Slobogian said.

By late Wednesday afternoon, it wasn’t obvious how Trump’s reciprocal tariffs might affect Canada. He highlighted the country’s dairy industry in his announcement.

“Economic policy created by fear and uncertainty is not a long-term strategy.”–Cam Dahl

Any additional U.S. tariffs will lead to increased costs and hesitancy from Americans to buy from Canadian producers, predicted Colin Hornby, general manager of the Keystone Agricultural Producers.

“There’s a whole downstream effect,” he said, noting farmers and processing-plant employees will be among those impacted.

Manitoba potato producers’ sales have already been slashed this year.

Manitoba Pork welcomed the news of CUSMA-compliant products avoiding fresh tariffs.

“We know that can change at a moment’s notice,” Cam Dahl, Manitoba Pork’s general manager, wrote in a statement. “Economic policy created by fear and uncertainty is not a long-term strategy.”

Working to relay the benefits of North America’s free trade to U.S counterparts is critical, Dahl added.

Approximately $37.4 billion worth of goods was traded between Manitoba and the United States last year, per data from the Canadian Chamber of Commerce.

Chuck Fossay was among those keeping an eye on Trump’s latest tariff announcement. The United States and China are Manitoba’s two biggest agri-food export markets, representing 46 and 15 per cent of exports, respectively.

Fossay is among the canola farmers impacted by Chinese tariffs. The Asian trading partner recently introduced 100 per cent tariffs on canola oil and meal, and peas and 25 per cent on some pork and seafood.

Still, he’s not planning to reduce the 1,000 acres of canola he normally plants near Starbuck.

“As long as there’s profit to be made, I think that a lot of farmers will just continue to grow the same acres that they’re planning for.”

But any new U.S. tariffs could change minds, he added.

David Wiens, chair of the Dairy Farmers of Manitoba and president of Dairy Farmers of Canada since 2023, was not prepared to share any reaction Wednesday afternoon, saying his organization is “still reviewing” the details.

“This is not as bad as we thought it might be.”–Bram Strain

Catherine Kroeker-Klassen, chair of the Manitoba Egg Farmers, said the organization is grateful for strong relationships with local government and Egg Farmers of Canada, “who are standing up for Canadian farmers and Canadians across the country.”

She said an extended trade disruption with the U.S.would affect the availability and costs of critical inputs in the overall food-supply chain, such as feed, transportation and livestock.

Bram Strain, the Business Council of Manitoba’s chief executive, said that although there are still details to be parsed, the situation could be much worse.

“This is not as bad as we thought it might be,” said Strain.

Tariffs on steel and aluminum remain in place and tariffs on auto exports to the U.S. come into force tomorrow, which will cause huge disruption in the southern Ontario auto.

Meanwhile, other than parts imported from the U.S. for some of southern Manitoba’s RV manufacturers, Manitoba does not have much presence in the auto industry, which has also been hit with 25 per cent tariffs.

While it seems as though Canada has fared much better than many other countries, Strain said at least there is more clarity going forward.

“It has been very destabilizing, but regardless of the outcome, at least we know, we have the go-forward lay of the land,” he said. “Hopefully it will stay in place for a while.”

Upwards of 63,000 Canadian jobs are supported by Manitoba exports to the U.S., Canadian Chamber of Commerce data shows, and 1,756 Manitoba companies export south of the border.

gabrielle.piche@winnipegfreepress.com

martin.cash@winnipegfreepress.com