With Canada tariffs slated to start this week, NNY tourism officials concerned
MALONE — A 25% import tax on most goods Canada sends to the U.S. — and a 10% levy on Canadian energy — received a monthlong reprieve in early February, but are now set to go into effect on today.
Tourism officials have raised concerns on the impact of negative sentiments over existing tariffs and uncertainty with the imposition of future tariffs on Canada and how it will impact the summer tourism season in northern New York.
The North Country Chamber of Commerce issued a news release Thursday on the upcoming tariffs.
“We and business interests on both sides of the border are stunned by this reversal within a day of indicating a postponement to April 2,” Garry Douglas, president of the chamber, said in the release. “All, including North Country businesses in every sector, are left confused and wondering if this is intended to squeeze some sort of final concessions on something or if we need to brace ourselves for the start of a bi-national trade war on March 4. A trade war between the two largest and most integrated economic partners in the world with the North Country on the front line in so many ways.”
Assemblyman D. Billy Jones, D-Chateaugay Lake, expressed concerns over potential tariffs.
“I am disappointed by the Canada tariff date reversal announced today just after they announced it would be postponed until April 2. As a border community with many Canadian businesses and a prominent tourist attraction, this will deeply hurt North Country businesses and residents,” Jones said in the release. “Canada is our friend, and this is no way to treat one of our strongest trade partners and allies. The federal administration needs to stop playing games and must rescind this decision without haste before it permanently damages our relationship with our northern neighbors.”
In early February, Tom Clark, the Canadian Consul General in New York, said that the threat of a trade war with the U.S. had united Canadians.
Clark said the 30-day pause on the import taxes hasn’t done enough to reassure one of the U.S.’s closest allies that the relationship can continue as it has for decades.
“The threat of tariffs really mobilized Canadians in a way that I have never seen before,” he said. “It became very emotional and very personal to a lot of Canadians.”
Trade with Canada supports 520,300 jobs, and more than 800 Canadian-owned companies employ 65,000 New Yorkers, according to Jones, and many of these jobs are in the North Country’s manufacturing sector.
New York also has $28 billion in exports and $50 billion in annual bilateral trade with Canada, according to Jones.
Canadian visitors account for roughly 5% of total visitation to the region, annually, according to Dan Kelleher, president and CEO of the Regional Office of Sustainable Tourism, in a February interview.
Kelleher said a decline in Canadian visitors would have a noticeable financial impact locally.
“We have seen a 40% drop in visitation to our website and if just half of those people opt not to come to the U.S., and we see a 20% drop in Canadian visitation we are looking at a loss of roughly $12 million in spending in the local economy and a reduction of up to $580,000 in tax revenue to our local counties and towns,” he said.