The federal government announced that 27 Nova Scotian companies will receive a combined $14.1 million in funding from the Regional Tariff Response Initiative. This $1.5-billion program is part of a larger $7.5-billion federal package aimed at assisting Canadian businesses in coping with the effects of U.S. trade policy.
When Ron Wallace, president of Ace Machining Ltd., needed a new piece of equipment for his Dartmouth, N.S., shop, he was certain it would not be sourced from the United States. "Our normal procurement process would have involved American manufacturers, but given the first wave of tariffs, we decided to remove them from consideration," the company co-owner told reporters at a news conference on Wednesday. "This is a small move … in the big picture, it will have very little effect. But if more Canadians look to their day-to-day purchases, together, we can make a difference."
Wallace opted for a Japanese-made computer numerical control milling machine, designed for precision material removal in creating parts and products for clients in the defence and marine sectors. The company employs 54 people, and Wallace proudly noted that 25 of them are either new Canadians or the children of immigrants.
On Wednesday, the federal government announced Ace Machining as a recipient of a $400,000 federal grant. This is one of 27 Nova Scotian companies receiving a total of $14.1 million in combined funding from the Regional Tariff Response Initiative. The $1.5-billion program is part of a $7.5-billion federal package designed to help Canadian businesses manage the impacts of U.S. trade policy.
Last month, the U.S. imposed tariffs of 50 per cent on $28 billion worth of Canadian goods following the breakdown of trade talks between the two nations. Canada's reciprocal tariffs on a similar value of goods are scheduled to take effect on Tuesday.
Justice Minister Sean Fraser, who also serves as the Nova Scotian MP responsible for the Atlantic Canada Opportunities Agency, made the funding announcement on Wednesday. He thanked Ace Machining for excluding U.S. firms from its procurement and urged other business owners to do the same, stating that the success of Canada's trade war efforts will be determined by the decisions of Canadians nationwide, not just those made in closed rooms on Parliament Hill.
"People are not just buying Canadian, but they're making sure that we're not supporting someone who is actively attacking our economic well-being by buying an American product," Fraser told reporters. "What gives me a great deal of optimism is not just this one example, but that this one example is being repeated in communities big and small across Canada in every aspect of life."
Fraser mentioned that Wednesday's grants represent the first tranche of projects to receive tariff relief and indicated that another round of applications, with a larger dollar value, is expected to open in the coming weeks. He also noted that similar funding is available in every region of the country.
The minister expressed that in an ideal scenario, Canada would maintain its trade relationship with the U.S., and business would operate solely on commercial terms. "But that's not the world we live in," he stated.
Fraser highlighted Nova Scotia's specific trade vulnerabilities, citing the Michelin tire plant in Granton, N.S. He explained that three-quarters of the plant's products are exported to the U.S., with other components crossing the border to be manufactured into industrial tires that are then sold back to Canadian consumers.
"There are 300 households in my community who are at risk with one employer, this is a strategic vulnerability," he said. "We have relied on the United States for too long … This goes back three-quarters of a century or more, based on the way that we have historically, extracted our resources, shipped them across the border, allowed the value-add to be done somewhere else and often buying those same products back at a higher price."
Wallace shared that Ace Machining is experiencing significant volatility in material prices. He noted that the company's pricing quotes, which used to be valid for 30 days, are now only valid for seven. Shipping costs have increased, budgets are strained, and companies are struggling with an uncertain business climate that appears to change daily.
"I have lots of friends in the U.S. and they're not happy with what's happening either," he said. "They're like cousins and brothers. It's just an unfortunate situation that decisions were made way, way, way above my pay grade and the working people have to suffer the consequences."
In a statement, Conservative critic for Atlantic economic development, Richard Bragdon, reiterated the party's demand for the federal government to disclose details of the U.S. trade deal it abandoned and called for Prime Minister Mark Carney to recall Parliament.
"Today's announcement is a temporary Band-Aid without a long-term solution. Local businesses in Nova Scotia are hurting and facing massive uncertainty. They need more than a renouncement of a short-term government program," said Bragdon.
