Island businesses will be looking to diversify as tariffs threaten U.S. market
'People are looking at diversifying not just their exports, but their inputs as well'
Some Prince Edward Island business groups say their members are looking to diversify as U.S. tariffs come into effect.
The economic dependency of Canadian and American economies has been an "eye-opener," said Bianca McGregor, chief executive officer of the Greater Charlottetown Area Chamber of Commerce.
"It was nice to see that both levels of government are already thinking about ways that they can support small business in that export diversification and in that export model," she said.
The provincial government announced the first phase of its tariff response plan on Tuesday, with measures including doubling trade missions to find new markets for P.E.I. products, providing financial support for businesses to market and advertise, and giving loans during the adaptation period.
"People are looking at diversifying not just their exports, but their inputs as well," McGregor said.
While businesses are working on that, she said it's important to remember that the process takes time.
"There are going to be some things on the shelves that aren't Canadian-made and that's OK. They'll start moving accordingly," she said.
Market diversification is a strategy used by all businesses, and the seafood industry is no different, said Bob Creed, executive director of the P.E.I. Seafood Processors Association.
But he warns it's not as simple as just finding a new willing buyer.
The volume and the quantity that we deal with with the U.S. is not easily just transported somewhere else in the world.— Bob Creed, P.E.I. Seafood Processors Association
"You have to find the transportation logistics to get the product there. And the volume and the quantity that we deal with with the U.S. is not easily just transported somewhere else in the world," he said.
Creed said it takes time to build new relationships, but the seafood industry is committed to doing it.
Meanwhile, he takes heart from comments made this week by the U.S. Secretary of Commerce suggesting that perhaps changes may be made to the tariff situation.
"We are hoping, quite honestly, that this tariff situation is short-lived and that the political leaders of our country and of the U.S. can find that common ground being referenced and that… cooler heads and common sense will prevail."
Some of the relationships with companies and customers in the U.S. have been 30 to 40 years in the making, Creed pointed out.
"We have a very close integrated relationship not only on sales, but also on just business operations with the U.S.," he said.
Relationships with U.S. still a priority
Both the seafood industry and the potato industry have business ties with companies and customers in the U.S. that span generations.
"Our number-one priority… even with the tariffs, is to maintain those relationships and maintain that business," said Greg Donald, general manager of the P.E.I. Potato Board.
"It's not an issue between our shippers and their customers and that relationship. It's with the administration," he said, referring to U.S. President Donald Trump and his officials.
Donald said customers in the U.S. also want to continue their relationship and generally do not support the tariffs, so he thinks pressure from the farm industry and consumers south of the border might help get the tariffs removed.
But in the meantime, word of funding for P.E.I. trade missions to visit potential new customers is welcome, Donald said.
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With files from Cody MacKay