SALT LAKE CITY (KUTV) — For Utah businesses that sell products in Canada, an escalating trade dispute between the United States and its northern neighbor is creating the familiar but increasingly difficult problem of uncertainty.
Companies making long-term decisions about investments, supply chains and export markets are being forced to plan without knowing what tariffs may be in place months or even weeks from now, World Trade Center Utah trade adviser Troy Keller said.
“Trade was just something that, as a compliance effort, happened kind of down in the basement for most companies, and now it is a boardroom topic,” Keller said. “Every board meeting, boards are discussing what are we going to do? Where should we put our capital? Who should we partner with on the supply chain side?”
Negotiations recently broke down, with both sides accusing the other of making unreasonable demands.
MORE | Trade Fight:
President Donald Trump then announced plans to impose previously announced tariffs and increase tariffs on automobiles from Canada.
Canadian Prime Minister Mark Carney, meanwhile, announced additional retaliatory tariffs on U.S. goods.
“Canada has taken this view that they want to fight it out,” Keller said. “Things could change on a dime. They always have with this administration, and so you could see a deal being made, but at the moment, it’s not headed that way at all.”
For American consumers, Keller said automobiles could be among the products most likely to see price increases if the dispute continues.
The automotive industry has built an integrated North American supply chain under the United States-Mexico-Canada Agreement, with vehicles assembled in Canada and parts routinely moving across borders.
Significant tariffs on Canadian automobiles could therefore translate into higher prices across the U.S., including Utah.
Prices of lumber, another of Canada’s large industries, may be less immediately affected.
Canadian lumber is already under multiple layers of tariffs, some predating the Trump administration, and weaker construction demand has helped keep current lumber costs below levels seen in recent years.
The more immediate concern for Utah may be Canada’s tariffs on U.S. exports.
Canada is consistently one of Utah’s largest export markets.
Utah companies sell electronics, aerospace components and natural products, including supplements, to Canadian customers.
Keller said one company watching the developments closely is Logan-based Campbell Scientific, which manufactures electronic equipment used in areas including meteorology.
Canada is an important export market for the company, Keller said, and officials are concerned its products could be caught in the retaliatory tariffs.
“You see that impacting our businesses even if consumer prices probably aren’t going to be affected here in Utah in the short term,” Keller said.
______
