Golf balls, pearl necklaces, and many other items will soon get more expensive in St. Albert as the Canada-U.S. tariff war rolls on.
The U.S. slapped 25 per cent tariffs on all steel and aluminum products from Canada on March 12. Canada responded with reciprocal tariffs on about $15.6 billion worth of American steel and aluminum products and $14.2 billion in other goods, including tools, computers, sports equipment, umbrellas, statuettes, roller coasters, gold, platinum, precious stones, watches, and tacks.
These tariffs are in addition to the ones Canada placed on $30 billion worth of other American goods, including cheese and orange juice, on March 4. Canada issued those in response to America’s 25 per cent across-the-board tariff on all Canadian goods (10 per cent for energy) issued March 3. On March 6, the U.S. suspended its across-the-board tariff on goods that qualified for preference under the Canada-U.S.-Mexico Agreement (CUSMA) until April 2.
Business effects
Carmen Bokenfohr of St. Albert’s Concept Jewelry Design said the new tariffs on gold, platinum, and precious stones would not have a significant impact on her store, as those materials could be sourced within Canada and outside of the U.S. While about 80 per cent of her stock is made in Canada, she also carries a number of American designs.
While she emphasized that she values her American designers and will continue to work with them, Bokenfohr said she would be cutting back on her stock of American products because of these tariffs.
“Twenty-five per cent is just too much to add onto the price of a piece.”
Andrew Simonsmeier of Alberco Construction said his company has been stocking up on lumber and chemicals in anticipation of future tariffs. Some of the bridges his company builds include up to $15 million worth of steel, some or all of which could be subject to the new tariffs.
“Part of the issue is the steel suppliers will not hold their prices for more than three or four days,” Simonsmeier said, which makes nailing down a price for, say, a new bridge difficult.
Simonsmeier said certain steel products were also only available from specific American mills, which would make avoiding tariffs on them impossible.
While the tariffs wouldn’t derail major projects such as the new interchange at Hwy. 2 and Cardiff Road south of Morinville, it would make them more expensive. The construction industry is now in talks with municipalities to see if it can adjust its contracts to account for now-higher steel prices.
Golf to cost more
Jason Wiwad, director of golf at the Cattail Crossing Golf and Winter Club, said these tariffs apply to every ball and club in his shop, as they were all made in the U.S.
“We sell $35,000 worth of golf balls in a year,” Wiwad said, and the profit margins on balls were pretty slim already.
“You’re going to see higher prices for sure.”
Wiwad said the impact of tariffs wouldn’t be immediate, as he ordered his current stock back in October (as did most store owners). He’ll have to up his prices once he restocks later this summer; bigger golf stores might hike their prices sooner. He didn’t think the tariffs would change what he stocks; golfers tend to be brand loyalists, and his customers wanted American brands such as Titleist and Callaway.
Wiwad agreed that Canada should defend itself in this trade war with the U.S., but hopes for a swift return to free trade and better prices for golf clubs, which had become extremely expensive even before this dispute started.
“Personally, I just wish we could play nice.”
Visit www.stalbertchamber.com/tariff-information for the latest updates on the Canada-U.S. tariff situation.
