Will Tariffs Come to Oxford?

The USA’s unprecedented (and incomprehensible) move to place across-the-board tariffs of 25% on Canadian imports will have significant repercussions for Canadian businesses, which will see their markets shrink and could lead to layoffs and shuttered businesses. The Canadian government’s tit-for-tat response of a 25% tariff on the importation of U.S.-origin goods will also mean Canadian consumers will see prices rise on many goods that we purchase on a daily basis.

Until these tariffs were announced, Canada-USA economic relations were conducted under the auspices of the USMCA — the United States-Mexico-Canada Free Trade Agreement that Trump himself demanded (a renegotiation of the previous North American Free Trade Agreement—NAFTA) just six years ago, and which includes internal dispute mechanisms for resolving conflicts.

The response to the U.S. move has been swift, at the national and provincial level. Canada’s retaliatory tariffs — matching those imposed by Mexico — come into effect the week of February 3rd, and will directly increase the cost to import some $55-billion of U.S. goods. Additional tariffs are planned in three weeks’ time on an additional $75-billion of U.S. imports if the matter isn’t resolved. The oil industry and the automotive industry are the two largest sectors of the economy likely to be directly affected. The Bank of Canada just published an infographic to help Canadians understand how the tariffs applied by both the USA and Canada will affect consumer prices.

Some provinces, like Nova Scotia, are responding as well, removing U.S.-origin alcohol from store shelves, pledging to cut U.S.-based businesses out of future government contracts for services while working toward ending existing contracts, and doubling the cost of highway tolls at Westchester for commercial vehicles originating in the USA.

At the municipal level, it’s not easy to understand how increased tariffs may affect Oxford in particular. Certainly, there are worries that the town’s largest employer, with significant cross-border operations, may be affected.

Oxford Mayor Greg Henley says the town is watching and waiting, like the rest of Canadian society, to see what may come:

At this time , we have no real idea as the effect the “Tariff War'” will have on the Town of Oxford. It is a source of concern as the town's main employer has considerable dealings with the US. As I understand the situation the Canadian government is responding with matching tariffs. National news outlets are warning of increased prices for consumer items including foodstuffs. The Bank of Canada is alluding to a possible recession if our GNP drops 3%. 

I worry that the lower income families will experience more hardships than most for as long as this continues. In the meantime I would urge everyone to read the labels and shop Canadian.

Oxford Frozen Foods has subsidiaries located in Maine — Maine Wild Blueberry Co. and CherryField Foods Inc. — and ships products (including frozen blueberries, onions, carrots and battered appetizers) to markets across North America. The US tariffs will undoubtedly have an impact on business… but how much?

On social media, many people are talking about the importance of choosing Canadian products over those of U.S.-origin — partly over concern about the expected rise in prices, but also out of a sense of national pride. Companion websites are popping up, offering verified lists of products and companies that are based in Canada. One of those sites — MadeinCa.ca — launched in 2018, in response to U.S. President Trump’s first kick at the trade can, which resulted in the USMCA. MadeinCa.ca was launched by then-17-year-old Tyler Campbell (read this CBC News profile of Campbell and MadeinCa.ca).

There’s also a “MadeinCanadaDirectory.ca“, launched in 2020, which aims to deliver much the same information. There are several others popping up on social media and other corners of the internet.

Prior to the current trade conflict with the USA, the Nova Scotia government created a programme to promote locally-made products and services known as Nova Scotia Loyal, which launched in July, 2023.

Closer to home, the Municipality of Cumberland County, under its Explore Cumberland project, created a “ShopCumberland” website to help consumers in the region find locally-made products and services. Although it appears to be inactive, the website and social media pages remain online and can be reviewed to find those businesses.

What about our little town of 1200-ish people? The Town of Oxford website has a local business directory to help you find locally-made products and services as well… some you may not know exist! It’s worth a look if you are committing to helping sustain the Canadian — and our own local — economy.

Nova Scotians are also big supporters of local farmers’ markets, with at least three operating in Cumberland County on a seasonal basis (Springhill, Pugwash, Parrsboro). While most are seasonal, some try to have products on offer through as much of the year as possible. Just across the county line in Tatamagouche, for example, that community’s farmers’ market is only closed for the month of January.

It remains to be seen whether this conflict with the USA will have longer-term repercussions. Some analysts think it will lead to a restructuring of the Canadian economy, and a new effort to diversify markets for export goods. Certainly, from a review of social media posts, Canadians of all political orientations are expressing a newfound nationalist sentiment, with “Buy Canadian!” popping up everywhere. If there is anything good to come out of this potentially disastrous economic kerfuffle, it might be that consumers in this country are beginning to “walk the talk,” looking for locally-sourced products as alternatives to import goods from the USA.

Whether this is an attitude that can be sustained in the long term is anyone’s guess. A strong local economy is in everyone’s best interests, while government policy and support has for decades seemed to prioritize the development of export markets over sustainable local markets. We can only hope that this newfound economic awareness of Canadians lasts well into the future.