As we welcome another year, the Nelson and District Chamber of Commerce board of directors and staff salute local businesses for all you do in the community as a business owner.
But let’s face it, owning and running a small business is anything but easy. It’s worth it most times, but not easy.
The past three-and-a-half to four years has been a nightmare for many local businesses. Let’s start with the rising costs of doing business. The past two years, businesses faced crippling rising costs, inflation, lines of credit increase due to rising interest rates, and tax hikes from all sides.
Throw in a pandemic, extreme weather events, the impacts of a nation-wide mental health and addictions problem and the impact on our downtown's labour shortages, and now chaos with changing immigration policy. That’s just the tip of the iceberg that businesses can see.
It's what looms below the surface that could be more problematic for our national, provincial and ultimately or regional economy.
South of the border President Donald Trump was sworn into office this week. He is known as a great disrupter, and disruptive he is, promising tariffs right across the board on Canadian goods being sold to the United States.
What is the impact of a 25 per cent tariff on Canadian products being sold to the U.S.?
Canada and the U.S. stand at crossroads in their trade and economic partnership, with tariffs emerging as the most pressing challenge for businesses on both sides of the border.
The stakes in numbers
The stakes couldn’t be higher according to our colleague at the Canadian Chamber of Commerce
Candace Laing, the president and CEO of the Canadian Chamber of Commerce, noted last week tariffs and trade barriers jeopardize jobs, industries and families across both sides of the border.
Every day 3.6 billion in goods cross the Canada U.S border fuelling a $1.3 trillion trade relationship, with 1.4 million American jobs tied to U.S. exports, and 2.3 million Canadian jobs to U.S. exports.
With Canada as the No. 1 export market for 34 U.S. states, cross-border trade sustains millions of jobs, businesses, and communities across North America.
"But trade isn’t just about dollars — it’s about people,” Laing added. “While governments might disagree, the ties between our businesses, workers, and communities are too important to be collateral damage in political disputes."
Let’s just look at one industry – forestry. Regionally there are local companies employing local people with good jobs, and supporting local contractors and spin- offs to dozens or hundreds of small businesses.
The B.C. lumber industry is watching closely. Locally, members of the Interior Lumber Manufacturers such as Kalesnikoff, Atco Wood Products and Porcupine say it is obviously top of mind. Ken Kalesnikoff says there has not been much certainty in the forestry sector for many years, and the uncertainty of lumber tariffs is yet another challenge for the local forestry companies. As much as they don’t know the exact impact yet, it is a huge concern.
Adding more fuel to the fire, last week, the president said the U.S. does not need Canadian lumber.
This makes no sense. In 2024, Canada softwood lumber imports in the U.S. – 12 billion board feet – accounted for 24 per cent of U.S lumber consumption, and 60 per cent of Canadian lumber production.
Clearly, the U.S. does need Canadian lumber, especially if there is an increase in construction in the U.S. The wildfires in Los Angles comes to mind.
Tariffs on Canadian lumber would simply increase prices for American buyers and fan inflation.
The tariffs don’t make economic sense for U.S. consumers, and the impact in our own backyard opens 2025 with more economic uncertainty. Tariffs will cause economic troubles on both sides of the border. We need to remain united in our resolve and political strategy with the U.S. administration and do our absolute best to protect business interests and ultimately the employees, or you and I as consumers that will feel the brunt.
Tom Thomson is executive director for the Nelson and District Chamber of Commerce.
