Manitoba businesses mull Ottawa aid package as U.S. says tariffs plan going ahead

A Winnipeg-based biotechnology company says it's open to any financial help it can get from Ottawa as the U.S. continues to push forward with threats to impose tariffs.

Kane Biotech says it may have to move its manufacturing out of the country if U.S. President Donald Trump's threat to slap a 25 per cent tariff on all Canadian goods leads to a drawn-out trade war.

The company — which develops products for the treatment of wounds — currently gets all of its sales from the U.S. market. Health Canada approved sale of its antimicrobial gel in November, but president and CEO Marc Edwards says the process to actually get it to market is slow, and the company needs some short-term support.

"We're still not cash-flow positive. We're burning capital," Edwards said.

"We're in the middle of a capital raise," and the current situation is "making this capital raise even more challenging," he said.

Radio-Canada is reporting Ottawa is preparing a multibillion-dollar aid package for citizens and businesses if Trump carries on with his threat. Plans for a "pandemic-style" bailout were first reported by the Globe and Mail Tuesday morning.

On Tuesday afternoon, federal NDP Leader Jagmeet Singh said he's open to supporting the Liberal government to help pass legislation related to relief measures when Parliament resumes in March.

Meanwhile, the U.S. said plans to impose the tariffs as of this Saturday are still going ahead.

"If I have the choice between longer-term receivables and some actual pandemic-style relief, I'll choose the relief," said Kane Biotech's Edwards.

"If we have tariffs and that slows down the deployment of our technology, that's terrible for us.… We need all the help we can get."

Focus on what Canada can control: Chambers CEO

Manitoba Premier Wab Kinew has also said the province would support businesses affected by the tariffs.

Last week, the provincial government announced a 16-person council made up of industry representatives that will advise the province on how to prepare for the threat.

Chuck Davidson, CEO of the Manitoba Chambers of Commerce and a member of the council, said the U.S. tariffs are not a done deal, and that he hopes it doesn't get to the point Canada needs the bailout.

"I think the most important thing is that we continue to focus on how do we avoid this, and making sure that we're telling the story about why the relationship between Canada and the U.S. is important," he said.

"Even more so, I think what we need to focus on is let's worry less about what's going on south of the border and the potential threats and the Trump talk on a regular basis. Let's focus on … things that we can control."

Davidson said governments could start by removing interprovincial trade barriers to ease the flow of goods across Canada and reduce the country's reliance on the U.S., or by making investments in infrastructure.

"We've talked about the Port of Churchill forever. Let's really focus on that," he said.

He added governments could also look into reducing red tape to increase productivity.

In mining, for example, "how do we make the permitting process easier? How do we make it so that Canada is a key place for investments? These are things that businesses are looking for," he said.

Fletcher Baragar, an associate professor at the University of Manitoba's economics department, said the effectiveness of a federal aid package would depend on several factors, including how long tariffs are in place and how Canada retaliates.

But Baragar said such a policy is still a smart play.

"This is a fairly sudden and substantial shock to the Canadian economy.… It makes sense to try to cushion that shock to some extent — at least for now," he said.

"Businesses are flexible. They can adapt, but they need time and they need resources."