Tariff threat, immigration cuts spell double whammy for N.L. businesses, Board of Trade says

CBC

26-01-2025

The head of the St. John's Board of Trade says businesses in Newfoundland and Labrador are preparing for a potential double whammy — threatened U.S. tariffs paired with massive cuts to immigration — that could devastate the province's economy.
AnnMarie Boudreau told CBC News she's thankful to see the province step up to combat potential tariffs and jobs in Newfoundland and Labrador, but knows action from U.S. President Donald Trump could be crippling for sectors like energy, mining and the fishery.
"We depend on that relationship and the established partnership with the U.S. for trade. So a 25 per cent tariff would certainly be devastating for a number of ... very significant employers and very significant sectors here," Boudreau said.
"When you have a really well-established relationship, it's not easy to replace that."
Trump told reporters in Washington on Monday that he was "thinking" of imposing a 25 per cent tariff against Mexico and Canada on Feb. 1, saying the tariffs are fuelled by the number of people and drugs including fentanyl crossing the U.S.-Canada border.
Boudreau said she feels some relief in hearing the tariffs won't come immediately, but says meaningful conversations have to happen leading up to Feb. 1.
N.L. businesses prepare for struggle on two fronts, says Board of Trade CEO
4 days ago
Duration 6:56
The head of the St. John's Board of Trade says a pair of recent developments could devastate N.L. businesses — U.S. President Donald Trump's tariffs, and Ottawa's cut to immigration. The CBC's Carolyn Stokes spoke with CEO AnnMarie Boudreau.
Discussions so far have highlighted unity among Canadian businesses, she added.
"We're seeing a lot of messages right now come from the U.S. in that President Trump is ... defending American jobs. And we're meeting him with that argument," she said.
But tariffs aren't the only major concern Boudreau has her eyes on.
The St. John's Board of Trade has also voiced grave concern over the federal government's decision to halve allocations of economic immigration spaces for Newfoundland and Labrador.
Speaking with CBC News following the announcement, provincial Immigration Minister Sarah Stoodley said her department was "gobsmacked" by the decision that could have deep economic ramifications for the province.
Boudreau said she wants to see the decision reversed and become part of a larger discussion advocating for a regional or provincial approach, rather than a blanket national policy decision.
"We want to meet with the [federal] minister. We want to understand the motivation for this 50 per cent reduction. And then we need to paint the picture of what the reality in Newfoundland and Labrador is like, and why this is not a suitable solution," she said.
Boudreau said the reduced allocation will put industries in a tough position — likely pitting them against each other in the fight for spaces and workers.
"Trying to make the case for why construction should be prioritized over health care, or why food and beverage should be prioritized over an I.T. job, that is an unfortunate position for anyone to find themselves in."
Both concerns add to compounding challenges business owners are facing, Boudreau said.
"It's never been more expensive ... to borrow money. Inflation has made things incredibly different. Consumer behaviour has gone down, disposable income has certainly decreased," she said.
"It really does, you know, make the case for why we need to be having productive conversations."