Nova Scotia

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

Representatives for two major exporters in Nova Scotia are bracing themselves for potential U.S. import tariffs, despite a last-minute delay in their implementation. Mike Hartery, co-manager of the Port Hawkesbury Paper mill, expressed the company’s readiness for the proposed 25% import tariff that was set to take effect on Tuesday.

The Port Hawkesbury Paper mill, which exports over 90% of its products to the U.S. for use in catalogues, magazines, and special packaging, is not expecting any exemptions or special treatment for the paper industry. Hartery acknowledged that the imposition of tariffs could lead to an increase in paper prices for American customers, potentially causing them to reduce their orders from Canada. This scenario may prompt the mill to reevaluate its costs, including sourcing less wood from Nova Scotia forests.

While the mill faced American tariffs of 20% between 2015 and 2018, ultimately prevailing in that dispute, the current threat of a 25% tariff necessitates a fresh strategy. Hartery emphasized the need for a tailored approach to navigate the evolving circumstances, rather than replicating past tactics.

In response to the looming tariffs, the company is moving forward with a $400 million investment in a standalone wind power project to power the mill. However, Hartery conceded uncertainty regarding the duration of the tariffs, questioning whether they would be temporary or have a more prolonged impact.

Meanwhile, Osborne Burke, the general manager of Victoria Co-operative Fisheries and president of the Nova Scotia Seafood Alliance, highlighted the seafood industry’s reliance on the U.S. market, with 65% of provincial processors’ products destined for American shores. In an effort to diversify their markets and reduce dependence on U.S. buyers, industry representatives and provincial officials are actively exploring opportunities in Europe.

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Burke, currently in Florida, shared his personal decision to seek vacation destinations outside the United States as a symbolic gesture of solidarity with the industry’s efforts to pivot away from American markets. Additionally, he mentioned the anticipation of a financial relief package from the federal government for the seafood industry, underscoring the ongoing support measures being considered.

As Nova Scotia exporters navigate the uncertain landscape of potential tariffs and seek alternative markets, their resilience and adaptability are evident in their proactive approach to safeguarding their businesses in the face of economic challenges.

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