Holt unveils N.B. tariff relief plan, but holds fire on aggressive measures
Premier not yet ready to restrict electricity sales to U.S., block pension fund investments in U.S. companies
New Brunswick's Liberal government has unveiled a $162 million "action plan" aimed at blunting the impact of U.S. tariffs on the province's exporters.
"When push comes to shove, we will do whatever it takes to defend New Brunswickers and our province," Premier Susan Holt declared Tuesday, hours after the tariffs went into effect.
"Our government is using every tool in our toolbox to protect New Brunswick workers and our economy."
That includes tens of millions of dollars in the provincial budget to help companies absorb the impact of the tariffs and to support any laid-off workers retrain for other jobs.
But Holt is holding her fire for now on two possible ways to pressure the U.S.: cutting off electricity exports to New England, and requiring government pension funds not be invested in U.S. companies.
"We will look at other steps," she told reporters. "They are on the table now. They may be implemented in the future."
Holt's comments followed calls by the Canadian Manufacturers and Exporters to put maximum pressure on the U.S. to get the tariffs quickly.
"It's time to fight — fight as in economically. We're not about to be a pushover," Ron Marcolin, the group's vice-president for New Brunswick and Prince Edward Island, told CBC's Information Morning Fredericton.
"Yes, collectively we can make President Trump back down, and we will."
The Trump administration imposed a 25 per cent tariff on all Canadian imports to the U.S. at midnight. The rate applies to everything but energy, which is subject to a 10 per cent tariff.
The tariffs are passed on to consumers and serve to make Canadian products more expensive and thus less competitive in the American market.
New Brunswick is the province that relies the most on the U.S. market, with 92 per cent of all exports going there.
Time to move on, mayor says
"This is a wake-up call for Saint John, this is a wake-up for New Brunswick, this is a wake-up call for the country," said Saint John Mayor Donna Reardon, whose city was recently ranked as the one likely to suffer the biggest tariff impact of any in Canada.
"We've been in this comfortable relationship with our American cousins, and now we're being attacked. So, you know, we're breaking up with the U.S., and it's time ot move on."
Marcolin said it won't take long to see the impact of the tariffs.
He expects cross-border traffic to slow down by the end of the week and for some companies to start shedding jobs soon as they lose U.S. customers.
"It is hard to predict," he said. "It is certainly a case-by-case basis, and certainly a lot of variables are involved, but I would say within weeks."
The province estimates that 35,000 jobs in the province are linked to exports to the U.S. and expects 4,000 to 6,000 of them could be lost as a result of the tariffs.
Holt called Trump's move illegal and unjustified, and her choice of verb tenses signalled the sense of betrayal Canadians are feeling toward the U.S.
"They're our neighbours, they were our best friends and now they're attacking Canada."
Among the measures Holt announced Tuesday:
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A $40 million competitive growth program to help large New Brunswick exporters become more competitive and protect existing jobs, and fund projects to make them more productive and help them diversity markets.
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Another $30 million to support other businesses, along with $4 million specifically for the fisheries sector.
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$33 million to support laid off workers with income support and retraining.
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$50 million redirected from existing Opportunities New Brunswick programs to provide working capital loans to companies affected by the tariffs.
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$ 5 million for communities affected by the tariffs, particularly border towns.
New Brunswick's largest forest products exporter, J.D. Irving Ltd., would not comment Tuesday on how the tariffs would affect its operations, including pulp it ships from New Brunswick to an Irving Tissue plant in Macon, Ga.
"All we can really say at this stage is that we are currently working out the details of what it will mean across our operations," spokesperson Brendan Langille said.
"We will continue to work with all levels of government and industry partners as we face these challenges together."
The Trump administration released preliminary new rates this week as part of the annual resetting of existing anti-dumping duties on Canadian softwood — a separate measure from the new tariffs.
They would raise the combined softwood duties on most New Brunswick exporters to 26.8 per cent from 14.4 per cent, and on J.D. Irving to 23.9 per cent from 11.7 per cent
The U.S. administration has also launched an investigation into imposing additional duties on national security grounds, which could place an even greater cost burden on provincial mills.
Holt said her government will also remove some of its interprovincial trade barriers to make it easier for Canadian provinces to do business with each other.
That includes unilaterally removing nine of the exemptions it has claimed to the internal Canada Free Trade Agreement, the narrowing of one other exemption and the possible elimination of six others — most of them related to procurement.
The province has already stopped signing contracts with U.S. suppliers and halted the selling of American alcohol in N.B. Liquor stores.
"New Brunswick is ready to take a leadership role to reduce interprovincial trade barriers in Canada," said Intergovernmental Affairs Minister Jean Claude D'Amours.
He also said the province was "looking at" automatically recognizing job-training credentials from other provinces for up to 120 days.
Holt said her government will assess the impact of its measures over the next three weeks before deciding whether to do more.
She said she wanted to avoid punishing Maine residents who rely on New Brunswick for electricity.
"Our neighbours in Maine are our friends, and we want to put serious consideration into the decisions that might hurt some of the people that have already spoken up against the tariffs."
Marcolin said many manufacturers and exporters in the region have already scaled back on spending on hiring, expansion and maintenance since Trump first threatened tariffs late last year.
"We do feel that we're ready — ready as much as you can be, with such a large tariffs," he said.
But, he added, "even though today is day one … it hits hard. It certainly is a wake-up call. Today is really the day that we know it's here."
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With files from Information Morning Fredericton