It seems like every day is an adventure, as each side in the Canada -US trade war volleys new and escalating tariffs in the ongoing dispute.
Regular Canadians and Americans brace to feel the brunt of a trade war, that at times seems to escalate on a whim.
Doug Lovsin, President of Freson Bros, tells the Mail that their enduring philosophy of acting locally will help with shoppers worried about feeling the pinch. But it won’t be without its effects.
“Freson Bros is an Alberta-based family company, and we have made some big commitments to Alberta. One is we only sell Alberta beef, chicken and lamb, so it hasn’t affected our meat department,” said Lovsin. "Our bakery only uses Alberta flour, so it is milled right here in Alberta, so it is not going to affect our supply. I think the biggest thing in all of this is supply. You have to have supply or you are not in business. For us, we are going to have a supply of beef, pork and chicken, and we’re going to have a supply of flour."
One area that might be impacted is fresh fruit and vegetables.
“On the produce side, what has been really impacted is citrus, berries and tomatoes. Those are the big ones,” he said.
It is not just the tariffs that are making the situation difficult, but it is also the logistics.
He explains that in conversations with one of its suppliers, who was trying to arrange trucking, he learned Americans are holding off ordering Canadian products and sending trucks.
“Therefore there are fewer trucks leaving Canada, so there are fewer trucks in the U.S. to bring products up,” said Lovsin.
Overall he says Canadian products are well-represented in the store.
“There is a substantial number of grocery items that are produced right here in Canada, by Canadians. Yes there are still some American-owned groups, but it really is substantial and we don't see it being a massive issue in centre store," said Lovsin.
Farmer and Alberta Canola Director Al Hampton tells the Mail that the threat of tariffs comes at a time when farmers are deciding what to grow.
"When you look at the Canola market, two of our biggest customers are the U.S. and China, and right at this point, both are being a little unfriendly when it comes to trade," said Hampton.
Along with the U.S. tariffs, China imposed retaliatory tariffs after Canada joined the U.S. in adding tariffs to Chinese steel, aluminum and electric cars. In response, China is tariffing Canola oil and Canola meal, which is used for feeding dairy. They haven’t gone after Canola seed.
“I guess there is a little bit of hope because if they put it on seed too then I think we’ll be scrambling big time,” said Hampton.
Because of this, he says prices have been dropping.
“At this point, I think there are quite a few farmers who are taking a look at their numbers and questioning whether to grow as much Canola,” he said. "What I know about the whole tariff play is it could all change tomorrow, especially on the U.S. side."
While many talk about expanding the market, however, he says this takes time and relationship building. He recalls when the cattle industry was hit during BSE, there was talk about building new trading partners. Three years later, Canada was selling even more to the U.S.
"People have to look at the cost of production figure out growing numbers and plan accordingly. It appears to be a bit of a roller coaster ride."
