The U.S. implemented hefty tariffs late last week on steel and aluminum that could see Canadians paying more for cars, farm equipment and more.

The tariffs amount to a 25% tariff on steel and 10% on aluminum.

Jamie Pegg, General Manager of Honey Bee Manufacturing (Frontier, Sask) explained the impact they are seeing as an agriculture manufacturer.

"Today with the way it looks, it's a significant cost increase for the product we need to produce every day," he said. "Already there have been price increases just on the threat of tariffs. With the fact the tariffs have come into play, we've seen significant increases on some of the steel that we purchase."

He notes another additional impact is also the cost of transportation with extra tax and tariffs. It has a negative effect on their bottom line and in turn the cost they have to charge producers.

Pegg is hoping it’s just a short-term annoyance.

"I think the most important thing is for our officials to sit down and get the NAFTA agreement carved out," he said. "To get it completed so that everybody knows the playing field that they're walking on. There's a great opportunity for our country and for other countries involved to be able to create a deal that continues on North America as the manufacturer that it can be and that it should be."

Pegg added that there are a lot of possibilities politically where these things could go. Adding that these tariffs are bumps along the way, noting we should be able to come up with a really good deal in NAFTA that should satisfy most people.

He also adds it’s a cost they don’t want to see or pass on, but it’s a fact of doing business in the 21st Century.


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