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Canada: Canadian businesses suffer as US tariff hikes upend industries

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Vancouver, Canada - April 12, 2025 Storyline: ⁠⁠⁠⁠⁠⁠⁠Multiple Canadian industries are already feeling the effects of U.S. tariffs as local businesses warn of a "nightmare" situation, while one Canadian scholar pointed out that the policies will also cause harm to the U.S. Multiple sectors were already struggling after U.S. President Donald Trump's 25 percent tariff on goods from Canada and Mexico took effect in early March, while Trump last week signed an executive order imposing a 10-percent "minimum baseline tariff" on all imports, bringing further pain. Arbutus Tree Service, a Vancouver-based tree maintenance company with over three decades of history is among the many Canadian firms suffering from the U.S. tariff policies. One of its employees explained that the tariffs will significantly affect their operations, as certain equipment components are sourced from the country's southern neighbor. Economist Mark Kruger, who is also a professor at the University of Alberta, believes the tariffs will also prove damaging to the U.S.' own interests. While Canada's timber industry is likely to be negatively affected, the U.S. construction sector will also encounter adverse consequences, given that Canadian softwood imports account for 23 percent of the total U.S. softwood market. Kruger said this will all lead to increased construction costs and ultimately drive up housing prices. Kruger also pointed out that Trump's goal of bringing manufacturing back to the U.S. through tariffs is unrealistic and will only harm the interests of American consumers. Shotlist: Vancouver, Canada - Recent: 1. Various of moving vehicle 2. Various of arborists working 3. SOUNDBITE (English) Wade Janzen, sales manager, Arbutus Tree Service (starting with shot 2/partially overlaid with shots 4-5): "Even if we're not replacing our vehicles, if we're sourcing any parts, vehicle maintenance is ongoing, so all of that is affected. Chainsaws themselves, a lot of them are manufactured in Virginia and some of the parts come from different parts of the world. It's a nightmare and we also hesitate to make any decisions because you don't want to buy something and then have huge stockpiles that you're never going to use and you don't want to hold off on buying something and then the price goes up." [SHOTS OVERLAYING SOUNDBITE] 4. Various of tools 5. Interview in progress [SHOTS OVERLAYING SOUNDBITE] Vancouver, Canada - Recent: 6. Various of logs in river Canada - April 9, 2025: 7. SOUNDBITE (English) Mark Kruger, professor, University of Alberta (partially overlaid with shot 8): "What ends up happening of course is that the price of lumber in the U.S. goes up and it costs more for Americans to buy houses. The timing is just terrible for anybody who wants to build and buy a house, right?" [SHOT OVERLAYING SOUNDBITE] Vancouver, Canada - Recent: 8. Building under construction [SHOT OVERLAYING SOUNDBITE] FILE: Ottawa, Canada - Date Unknown: 9. Parliament hill Windsor, Ontario, Canada - Recent: 10. Cityscape Canada - April 9, 2025: 11. SOUNDBITE (English) Mark Kruger, professor, University of Alberta (starting with shot 10/ending with shot 12): "The idea of rebuilding manufacturing maybe was good at some point in history. But now, with global connectivity, with low transportation costs, with low information costs, it makes a lot of sense to divide labor across international boundaries. So I think President Trump's idea that we could make the U.S. a manufacturing power is designed to make Americans poorer. But I think we shouldn't turn our backs on free trade because this policy since the end of World War II has made the global economy much more prosperous." Windsor, Ontario, Canada - Recent: 12. Various of Ambassador Bridge at Canada-US border, traffic, road sign. [Restrictions : No access Chinese mainland]

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