So we're talking about cosmetics, clothing, furniture, printed matter, packaging, plastic

products, charcoal.

Those ones, as well as a lot of products that are US manufactured, but Canadian resourced.

So we're talking about the lumber, the paper products, anything along those lines that are Canadian.

We're encountering a tariff on the way into the US with the US Section 338 tariffs.

So the aluminum, the steel, the paper products, the wood, and then those products are further manufactured and shipped back to Canada at a higher price.

So it's really making those states that manufacture these parts uncompetitive in the Canadian market based on not only the U.S. tariff of Section 338, but then the counter tariffs.

Yeah, and doesn't Canada export oil to the US as well?

Um, I mean, do we think the biggest impact here is gonna be obviously on steel, aluminum, and then auto, knowing that we already have a bit of a steel and aluminum shortage, and those prices increasing very significantly prior to even this?

I think those are gonna be the areas that first show it, just because they're the inputs that I would say are the first to feel it.

Um, if you're talking large retail, if you're talking some wood, uh, softwood lumber, those kind of items, those ones usually feel down the supply chain a little longer.

Uh, metal, it's, uh, aluminum, auto, it's produced and shipped.

There is a-- It's very, it had very much built the just-in-time methodology, and now that, uh, we've seen that just in time may not be the best approach with tariffs being in place, it seems to be those ones are the ones that are feeling it first in their destination they're going to.

But we've started to see that a lot of trade routes are changing based on this, especially in the northern states, southern Canada.

They're see- we're seeing more eastwest between instead of northsouth.

How do you make long-term decisions or planning? I think that's one of the things that I'm getting a lot on my end is, what am I supposed to do about something that I don't have a lot of clarity around? Do you have any, any suggestions for the person out there asking that question?

And I mean, is there something that manufacturers can do or say that will let him know or let the government know how much this is going to impact them?

So there's been a lot of thoughts on this through the trade community of what would get his attention.

And it doesn't seem to be anything that's getting the administration's attention.

There's been lobbying from U.S. companies.

They know it's inflating their prices.

It's inflating.

They're losing sales because the input costs are higher and it's not competitive in the global market.

Is that local market relief available?

Yeah

... it's very unique.

Um, like, we're gonna see it around Thanksgiving where, you know, all the, the aluminum pans and such that are coming from Canada are gonna be tariffs.

So now you're cooking your turkey and it's gonna be more expensive surrounding it.

So it's, it's gonna be all the, uh, I, I don't wanna say it's, like, the big items.

We've stayed away from, like...

Lucky enough, both governments have stayed away from energy, oil, like, um, for the most part.

Yeah

So explain exactly what your company does.

Sure.

So we assist businesses with tariff support.

I'd say the relationship between Canada and the U.S. was very lax for many years, which is Wonderful if you were a small business owner, you didn't have to worry about tariffs or any other compliance.

But unfortunately, once the game or the rules became serious, there was a lot of complacency that had to be made up for.

So we support businesses ensuring that their BHS codes are correct, that what they're paying is either correct or which other ways that they can help mitigate the tariffs.

And we have an entity in Canada and the U.S. in Georgia.

This is more complicated than we had any idea.

So explain exactly what your company does.

Sure.

So we assist businesses with tariff support.

I'd say the relationship between Canada and the U.S. was very lax for many years, which is Wonderful if you were a small business owner, you didn't have to worry about tariffs or any other compliance.

But unfortunately, once the game or the rules became serious, there was a lot of complacency that had to be made up for.

So we support businesses ensuring that their BHS codes are correct, that what they're paying is either correct or which other ways that they can help mitigate the tariffs.

And we have an entity in Canada and the U.S. in Georgia.

This is more complicated than we had any idea.

effort.What will the effect be for the Detroit processing plant who is reliant on this trade northwards with-

Now they're gonna have to try to find these materials, and we've seen within our current clients as well that as they put tariffs on these items in the US, so now that the US isn't getting as much steel from the international market, they don't have the actual manufacturing punching units or processing fabrication.

So a lot of US companies acquired Canadian fabrication companies thinking that it was the appropriate means, and now unfortunately, the tariffs are making that redundant.

So our clients that are cross-border are looking at it saying, "Okay, well, it doesn't make sense to ship the product to produce in Canada anymore, but we don't have the supply in the US, so what do we do?" So all it's doing is adding longer lead times to production to be produced, and I'd say the steel manufacturers are really looking at how do they increase their output, and right now they don't have the time to be able to increase their output for the demand on steel.

So it really seems to be causing a lot of shocks in the supply chain, and I'd be interested to see what happens next if they take the same approach with the southern border of Mexico, or if we see some international allowances on metal fabrication.

How does that feed into SME relationships with financial institutions? What can banks and other institutions, maybe the government, export credit agencies, how can they all support SMEs at this time?

I think they're doing a good job, but there is gaps.

So the government is doing great job, same with, uh, the prime minister making these deals with Europe, the UK, other markets, but the problem is they aren't helping them in turn.

That seems like it's gonna be particularly painful.

There's gonna be certain industries.

Construction, new h- home building is gonna be one of them.

Uh, the number of homes, I believe it was 33% that start with Canadian lumber.

It's, uh, you won't see it in the ...

As a home buyer, it will ...

You'll see the, uh, costs eventually, but you won't see it right away.

What's different this time? What's different about this implementation?

That seems like it's going to be particularly painful.

There's going to be certain industries.

Construction, new home building is going to be one of them.

The number of homes, I believe it was 33% that start with Canadian lumber.

You won't see it as a home buyer.

You'll see the costs eventually, but you won't see it right away.

It's going to be the contractors and the small businesses that are If you're looking to finish your kitchen or redo your bathrooms, it's going to be those areas where you're going to see the costs at your Home Depots of the world, especially on the lumber and some of the metals across the border.

What's different this time? What's different about this implementation?

Uh, I don't know, but what was that like in April of '25? Go back then.

So I've been in trade way too long.

Trade compliance.

Uh, well, there's way too many gray hairs here, but, uh, trade was a very, uh, nondescript industry, so, or discipline.

It wasn't getting the visibility, um- I would say that, uh, there was certain countries that were being taken advantage of with the structure with, you know, any time you can get reduced cost on labor in certain markets, it's cheaper to go there.

And I'd say businesses as a whole, good American, Canadian, North American businesses, the balance sheet outweighed the, um, you know, the, the effort to be here in North America.

And that, you know, that started 30 years ago, and it just continued to erode, erode, erode industry after industry.

Yeah