As businesses across Barrie and Simcoe County continue to assess the impact of U.S. tariffs and Canada's planned counter-tariffs, local business leaders say uncertainty remains the biggest challenge.
Paul Markle, president of the Barrie Chamber of Commerce, said the region's manufacturing base leaves many businesses exposed to potential trade disruptions, although the effects will vary significantly from one company to another.
"We know, just based on the items that are on the 338 tariffs, that there are about sixty-nine businesses in Barrie manufacturing, all different sectors, that have either a very high or moderate to low impact from the tariffs," Markle told Barrie 360. "Because of the amount of advanced manufacturing, plastics, packaging, transportation, just being where we're positioned, we're highly exposed to tariffs, and there will certainly be an impact from that."
While large employers often dominate discussions around tariffs, Markle said many small and medium-sized businesses in the region are also affected.
The good news, he said, is that many companies are drawing on lessons learned during the pandemic. Businesses that previously faced supply chain disruptions have already begun diversifying suppliers and expanding into new markets.
"What I found from talking with most of our bigger manufacturing businesses is that because of what had happened through the pandemic and through the earlier stages of this tariff war, they've found ways to diversify their supply chain as well as their markets," Markle said.
That ability to adapt, or pivot, could prove critical as businesses look for ways to offset higher costs and preserve profitability.
In some cases, tariffs may even create opportunities.
Markle pointed to one local business owner who imports goods and is watching competitors exit the market amid the uncertainty.
"I spoke with a local business owner that works with goods that are imported, and her competitors, there's a fire sale on products," he said. "For that individual business owner, there's now an opportunity, if there's enough money in the bank, to be able to buy some of that supply or that stock at a discount."
The business could also benefit from reduced competition if rival companies decide to scale back or close operations.
Listen below to our interview with Chamber of Commerce President Paul Markle, it's the first item.
Still, Markle cautioned that not every business will be able to weather the storm. Some may face layoffs, while others continue to struggle with labour shortages. The impact, he said, is highly industry-specific.
More concerning than the tariffs themselves is the uncertainty surrounding future trade policy.
"It's absolutely the uncertainty," Markle said when asked what worries business owners most.
He noted that even businesses with little direct exposure to cross-border trade can be affected as higher transportation, shipping and supply costs work their way through the economy.
"Those rising input costs, the cost of trucking, the cost of getting goods to the back door, they result in higher prices going across the counter," he said. "Ultimately, these things trickle down...they're gonna trickle down into your pocketbook."
Federal and provincial governments have announced support programs aimed at helping businesses respond to tariff-related pressures and explore new markets. Markle welcomed the assistance, though he acknowledged some smaller businesses may not qualify for certain funding streams.
In the meantime, he encouraged residents to support businesses closer to home.
"Spend your dollars on the ground," Markle said. "As much as you can stay off the Amazons, look at where things are coming from, where they're sourced, and try to help that local business."
For local companies facing another period of economic uncertainty, the Chamber says adaptability, diversification and community support may once again prove essential tools for navigating challenging times.
