Feedback from Delta businesses shows many anticipate ‘significant’ impacts from both U.S. and reciprocal Canadian tariffs.
A recent survey conducted Feb. 10-17 by the Delta Chamber of Commerce with support from the City of Delta found local businesses are expecting significant challenges caused by President Donald Trump’s 25 per cent tariffs on Canadian exports and 10 per cent tariffs on Canadian energy, which came into effect on March 4, as well as from any countermeasures imposed by Ottawa.
The survey gathered responses from 59 Delta businesses across 13 industry sectors, including 16 businesses in manufacturing, representing about 1,600 employees and over $138 million in combined revenue.
"This survey provides a quick glimpse into the challenges and uncertainties Delta businesses are facing in light of the proposed tariffs. While many businesses are anticipating immediate impacts, they are taking a measured approach to respond,” chamber executive director Jill McKnight told council Monday night (March 3), hours before the U.S. tariffs came into effect.
“As we move forward, it is crucial to continue monitoring these developments and to support businesses as they navigate the evolving landscape."
Key findings of the survey include that responding companies expect to be affected by both U.S. (70 per cent) and Canadian (64 per cent) tariffs, with 59 per cent expecting U.S. tariffs to immediately impact their businesses.
While 62 per cent of respondents are preparing to make changes soon, they are also waiting for more information before committing to any big moves.
"Given the evolving tariff situation, most businesses are not rushing to make changes, but are instead gathering information, securing supplies and preparing for necessary actions. As we consider the impact on the Delta business landscape, we must be mindful of the risk of losing businesses to the United States or facing potential closures," McKnight said.
"It's also encouraging to see many businesses are looking to expand their market base within Canada, though we must also note that 14 per cent may consider reducing their operations and scaling back."
More than half of businesses (53 per cent) anticipate increasing their prices to offset higher costs and many expect demand to decrease as a result, including almost all respondents from the manufacturing sector.
"One uncertainty that our businesses will face is the market's ability to absorb the price increases to offset declining margins. Many manufacturers are grappling with this, and in some cases there may be little room to raise their prices to cover the added costs," McKnight said.
McKnight also warned that there will be trickle-down effects to sectors like the service industry and adjacent supply-chain logistics which may not have been addressed with the survey.
Noting the survey represents a snapshot of business perspectives over a one-week period, McKnight said the chamber will continue collecting sector-specific feedback.
“The evolving landscape and varying U.S. executive orders will each have their own set of impacts, which can't be fully anticipated until we know exactly where and when they will be applied," McKnight said.
"In the coming months, the Delta Chamber of Commerce will focus on providing businesses with access to resources to help them make informed decisions, facilitating community connections for supplier diversification and local customer engagement, and connecting businesses with experts for additional support in their businesses."
A summary of the survey results can be read online at letstalk.delta.ca/delta-businesses-tariff-survey.
