2 large N.S. exporters say they're prepared for U.S. tariffs

Representatives for two large exporters in Nova Scotia say they're ready for U.S. import tariffs, even though they were delayed on Monday just before they were to be implemented.

Mike Hartery, co-manager of the Port Hawkesbury Paper mill, said the company had been waiting Monday afternoon to find out if the promised 25 per cent import tariff would kick in on Tuesday.

The mill was not expecting any special carve-outs or exemptions for the paper industry, he said.

"We believe that that is highly unlikely, based on the discussions we've had with different officials," Hartery said.

Port Hawkesbury Paper exports more than 90 per cent of its products, used in catalogues, magazines and special packaging, to the U.S.

'It could be rather significant'

Hartery said tariffs would drive up paper prices for American customers and could force those buyers to scale back their orders from Canada.

He said the mill is scrutinizing its costs, which could mean buying less wood from suppliers in Nova Scotia forests.

"It could be rather significant and again, that just depends on what impact it has on our customers in the end," Hartery said.

Port Hawkesbury Paper was hit with American tariffs of 20 per cent from 2015 to 2018 after paper producers there complained the Canadian company was being unfairly subsidized.

The mill eventually won that battle, but times have changed and the company can't afford to have its customers pay 25 per cent more now.

The new threat requires a new strategy.

"We're not going to take the playbook out from 2015 and mimic what we did then," Hartery said.

"It will be customized to the circumstances that we find ourselves in today."

The company will press ahead with a $400-million investment in a stand-alone wind power project to supply the mill with electricity, but that does not mean the company expects tariffs, if implemented, to be temporary.

"I think all of Canada is wondering whether it will be six months, eight months, two years, permanent," Hartery said. "It's really difficult for us to form an opinion on that."

Osborne Burke, general manager of Victoria Co-operative Fisheries in northern Cape Breton and president of the Nova Scotia Seafood Alliance, said 65 per cent of provincial processors' products end up in the U.S.

New markets being pursued

He said industry and provincial government representatives are in Europe right now seeking new markets to reduce their dependency on American buyers.

Burke, who is in Florida this week with family, also said he is personally looking for vacation spots outside the United States.

"We're involved in a time-share here at Disney World, which we'll be letting go of, and we're not coming back in the foreseeable future," he said.

"It's our little way to say to the U.S. of A. that we're not going to spend our dollars in an area where we're not welcome."

Burke said the federal government had been working on a financial relief package for the seafood industry that he had expected to get details on within the next week or so.