Middle-class, low-income Niagara families impacted most by trade war: experts
Amid the uncertainty and instability of a U.S.-Canada trade war initiated by tariffs imposed by the Trump administration, the impacts to vulnerable communities could be far-reaching. People living paycheque to paycheque or on government assistance programs are going to struggle more to survive, putting increased pressures on local food banks, experts say. Brock University finance professor Ernest Biktimirov said tariffs would disproportionately affect “low- to middle-income families,” impacting many facets of their lives — most importantly, their food security.
“The tariffs have already strained key industries in Ontario, like the automotive manufacturing industry, resulting in job losses and reduced working hours. So, as a result, these employment challenges have created financial hardships for many Canadian families,” he said.
U.S. President Donald Trump’s administration has been carrying out an on-again, off-again tariff war, combined with threats of annexation of Canada. Trump signed an executive order declaring an emergency at the northern border and in March went ahead with the economywide duties against Canada, only to partially pause the levies a few days later for imports compliant with the Canada-U.S.-Mexico Agreement on trade, called CUSMA.
Trump’s tariffs on the auto sector, steel, aluminum and lumber are 25 per cent. There’s a lower 10 per cent levy on energy and potash. Canada responded with tariffs of its own on automotive, steel and aluminum products not included in the free trade agreement signed between the two countries and Mexico during Trump’s first term. Trump also got into an escalating tariff war with China, which sent stocks and markets plummeting worldwide in recent weeks, but has given indications this week he would ease American actions in that tit-for-tat dispute.
Lori Beech, executive director of Bethlehem Housing and Support Services, said she worries tariffs will lead to belt tightening as bottom lines get thinner and food prices escalate. “Consumer product pricing is going to change, (and) as in times like this, the vulnerable are impacted the most,” she said.