CGTN Europe interviewed Dan Kelly, President and CEO of the Canadian Federation of Independent Business (CFIB)
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00:00Well, Dan Kelly is from the Canadian Federation of Independent Business.
00:04The Chinese tariffs are on several really critical sectors for our economy.
00:10Obviously, we are big agricultural product producers, and that will hurt not just large companies, large exporters,
00:17but tons and tons of small independent businesses and farmers.
00:21This is a big challenge for Canadian businesses, and when you add the tariff threats from around the world,
00:27these are some pretty challenging days.
00:30Now, these tariffs, as you say, apply to specific products.
00:34How will this affect the broader Canadian economy?
00:38Well, look, given the U.S. tariff situation, Canadian businesses are looking at expanding
00:44and looking at trade options elsewhere in the world.
00:47And, of course, Asia is a primary partner, of which China is a huge, huge section.
00:54And so for us, this is, you know, we're running out of options.
00:59We already have a small amount of trade with Europe that can be expanded, but my goodness,
01:04this is a big threat because we're getting kind of a one-two punch here with respect to tariffs.
01:09Some of the actions that we've taken towards China that have precipitated this are, in part,
01:14to try to align with the United States and their measures, but Canada seems to be caught in this crossfire.
01:21Well, indeed, and as you mentioned, there are already these U.S. tariffs lurking.
01:26Is this, with China, this latest round, is this the new front in what is a trade war?
01:32Well, look, the trade war is significant.
01:36Obviously, the U.S. market is just far more profound to Canada than is China,
01:41but depending on the commodity or sector of the economy, that can be different.
01:46But, yes, having two of the world's major markets limiting access for Canadian exports
01:52as an exporting nation, that takes its toll.
01:57Your members, the businesses that you represent, what are you communicating to them?
02:01Are they being prepared for a prolonged economic standoff?
02:06You know, I will say there is this feeling of unity among Canadians
02:13that we need to push back and push back aggressively,
02:16and we're a very politically divided country right now, as many are,
02:21but it's interesting to see that Canada has come together in a way that in my lifetime I have not seen.
02:29So the sentiment towards unity is really, really high, and that is a good thing.
02:36But our economy is not going to be able to withstand this without major damage if this goes on,
02:43and just the uncertainty over tariffs is taking its own toll on the business community.
02:48I mean, businesses like to plan for the future, and it is hard to figure out, given the U.S. situation.
02:54We've had, I think, five tariff announcements where it's going up or going down, depending on the hour.
02:59Yeah, clearly massive uncertainty.
03:01And the relationship with China is still very important for Canada.
03:05Do you think that relations can be improved, that it is very damaging, these latest rounds of tariffs, or can they walk them back?
03:13Look, we've been here before.
03:15We have had rounds of tariffs on certain commodities with China, with the United States or other trading partners.
03:22They're in place for a while, some degree of retaliation, and then calmer waters reappear.
03:28But right now with the United States, I think we're going to have to sleep with one eye open.
03:33Hopefully, the brewing battle between the U.S. and China doesn't create collateral damage here in Canada,
03:41but I worry very much that that's what's going to happen.