Tiresome tariff talk compounds flagging confidence

Summer is traditionally a time to slow down and reenergize, but the trade talk coming out of the Whitehouse feels like spam through a faulty email filter.

“Like most copy-and-paste chain-letters, this latest tariff threat from the US promises disaster if its warnings and predictions aren’t taken seriously. But it’s the senselessness of this tradewar that is the real tragedy,” Canadian Chamber President and CEO Candace Laing said. “Having spent months under on-again, off-again tariffs and threats, Canadians already know just how damaging this can be — both to our economy and the relationship we’ve enjoyed with our southern neighbour for decades.”

In Greater Victoria, Chamber Past Chair Kris Wirk told CHEK News that many members are already pivoting their business to other markets or services that avoid the US.

“The fact that there’s moving goal posts and moving deadlines makes it difficult for businesses,” Wirk said, noting many people are making changes to help weather the length of the current US administration’s time in office. “I think the past is a good indicator of the future so we may be in for a long four (or three-and-a-half) years.”

According to the Conference Board of Canada, the uncertainty is making businesses cautious during a season that typically sees growth. The Index of Business Confidence decreased by 1.5 points this quarter, falling to its lowest level outside of the pandemic.

“Over 40% of respondents cited weak market demand and government policies as the two leading factors holding back planned investment,” the Board said. “Until these challenges ease, business investment is expected to remain restrained.”