Wohler Canada Inc., a Mississauga-based company specializing in aluminum foil products, is grappling with the effects of international tariffs. The company, which produces pie tins and takeout containers, faces significant challenges due to a 25 per cent levy imposed on certain materials imported into the United States. This levy affects all countries, including Canada, and threatens to cut Wohler's Canadian operations to 40 per cent of their previous scale.
Plant manager Thang describes the situation as difficult to quantify, highlighting the uncertainty surrounding the tariffs' impact. With 20 per cent of Wohler's finished products destined for the United States, the company feels the pressure of lost business. Thang indicates that this portion of their market is effectively "gone," illustrating the stark reality of the trade tensions.
Complicating matters, the Canadian federal government imposed a 25 per cent surtax on aluminum imports from China last October. This measure was justified by "pervasive subsidization and other non-market policies." Wohler Canada Inc. managed to secure a temporary pause on this surtax, extending relief until the end of the year.
As part of a broader trade dispute, Ottawa plans to impose retaliatory tariffs on U.S. goods valued at $29.8 billion. These tariffs come into effect at 12:01 ET Thursday, in response to steel and aluminum tariffs levied by the U.S. administration. This move aims to defend Canadian industry but will indirectly impact domestic customers who rely on Wohler's products for their businesses.
The tariffs are expected to raise costs for Canadian customers selling their goods in the U.S., potentially affecting prices for pies and ready-made meals. This price increase is a ripple effect of the ongoing trade tensions, adding further strain on businesses that rely on cross-border commerce.
