B.C. plywood manufacturer says it cannot absorb 50% tariff cost as deadline looms
A British Columbia plywood manufacturer warns that proposed 50% U.S. tariffs would be impossible to absorb, threatening the industry. Canadian officials are currently in high-stakes negotiations with the U.S. to avoid the implementation of these duties.
Why it matters
Trade disputes involving significant tariffs can cause severe economic disruption to specific industries and regional economies.
A Richmond plywood manufacturer is concerned about what Wednesday is going to bring for his business.
Canada-U.S. Trade Minister Dominic LeBlanc met with U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick as officials race against the clock to secure a new trade deal before new 50-per-cent tariffs take effect Wednesday.
The duties will impact roughly $28 billion worth of Canadian exports, including 20 per cent of sales at Richmond Plywood, where they produce a lot of high-end product.
“A 50 per cent tariff is not a margin we can absorb, nor is it something U.S. customers will be willing to pay,” Bhavjit Thandi, CFO of Richmond Plywood, said.
Prime Minister Mark Carney was in Newfoundland on Monday and says he expects to speak with U.S. President Donald Trump before Wednesday’s deadline
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