Manitoba businesses focused on local sales avoiding big hits from tariff troubles

Mike Arsenault · CBC News

· Posted: Mar 07, 2025 6:00 AM EST | Last Updated: 8 minutes ago

Tariffs are taking a toll connected astir each assemblage successful Manitoba, with galore businesses concerned astir the accrued costs they whitethorn bring and the uncertainty that comes with having President Donald Trump astatine the helm successful the U.S.

But some, similar Tiny Monster Garden proprietor Ryan Gauvin, accidental their concern hasn't taken a deed from the 25 per cent tariff connected virtually each Canadian goods entering the U.S., which was imposed this week but put connected clasp for astatine slightest immoderate bully connected Thursday.

Gauvin's business, based successful Lorette, conscionable southeast of Winnipeg, sells seeds to section farms successful Manitoba, and doesn't bash ample exports extracurricular the country.

"When we archetypal started proceeding astir the menace of tariffs earlier this year, I saw a definite spike successful my sales, and that's astir apt a batch similar the COVID pandemic," said Gauvin, who sells seeds adapted to Manitoba's increasing conditions and perfect for radical starting a section garden. 

"People spot the looming menace of volatile nutrient prices oregon ostentation oregon disrupted proviso chains, and they think, 'Well, however tin we mitigate the effects of this connected our family?' Starting your ain plot is 1 mode to bash that."

Gauvin said helium utilized to export to the U.S., but "started backing distant past year" owed to changes with the U.S. Postal Service's parcel system.

"It conscionable made it not cost-effective for maine oregon my American customers to bargain my seeds anymore," helium said.

While the tariffs are going to impact a batch of his peers successful the agriculture industry, Gauvin hopes the disruption mightiness spark immoderate affirmative change — "maybe altering our nutrient strategy truthful it's a small much resilient, much radical increasing location gardens, much radical joining their section workplace CSAs [community-supported agriculture] oregon nutrient stock programs," helium said.

"Those are affirmative things that volition person a semipermanent effect … far beyond the tariff situation."

Amy Nikkel, who owns Adagio Acres successful the Interlake, said she isn't feeling the unit of tariffs close present either. She grows integrated oats and processes them wholly connected her workplace earlier they're sold successful market stores crossed Manitoba.

She said she's seen an summation successful income over the past month.

"The stores are putting Canadian flags connected our products, and not connected our closest competitor's products," Nikkel said of her integrated oats.

"So radical who are looking for a comparable product … now they're discounting 1 of those options, truthful we're surely seeing accrued income due to the fact that of that."

Nikkel said her concern is an exception, and a batch of her husbandman friends are moving into problems trying to merchantability their products southbound of the border.

They've had to marque immoderate drastic pivots to support their concern financially viable, she said.

But the information her concern has managed to debar the interaction of tariffs is validating, she said, and she thinks its business exemplary could beryllium a much robust mode of increasing food.

"When you support your proviso concatenation abbreviated and you support your products section to home, and you support the nutrient that's being grown present really eaten here, I deliberation determination is little extremist shake-ups erstwhile governmental problems travel our way." 

Challenges with 'buy local' push: prof

While Trump has postponed the tariffs on some imports from Canada and Mexico for a month, the impact is inactive a concern, says Dan Shin, a prof of proviso concatenation absorption astatine the University of Manitoba. 

Canada, the U.S. and Mexico person a complex and businesslike proviso chain, and manufacturers crossed North America usage this narration to root their needs from the cheapest option — not needfully the closest, helium said.

Tariffs could complicate that relationship.

"Some things Canada is conscionable amended at, immoderate things U.S. is amended at, truthful we were conscionable relying connected each other's spot to screen our weaknesses," said Shin.

"But present … we person to bash thing to instrumentality attraction of our weaknesses, and wherever we lack, we're going to person to bash it ourselves oregon we're going to person to wage up."

Shin said the propulsion to bargain Canadian goods could also beryllium challenging for manufacturers.

"In a hypothetical concern wherever each the Canadians commencement purchasing lone from Canadian businesses for Canadian goods, they're not going to beryllium capable to conscionable that demand," helium said.

"So prices are going to spell up, which volition further exacerbate the interaction of inflation, and the question present becomes, volition the Canadians beryllium consenting to wage this premium for Canadian goods?"

Shin believes Canada should reassess its proviso chain, and look for ways to beryllium much resilient successful the look of uncertainty from tariffs oregon governmental friction.

"I americium looking to spot much talks, and much enactment towards what we tin bash wrong Canada to trim immoderate of our commercialized barriers betwixt provinces."