P.E.I. could lose $250M if U.S. follows through on tariffs, premier says

Prince Edward Island could lose $250 million if US imposes tariffs, premier says
Prince Edward Island's premier says his province could lose $250 million if the U.S. imposes a 25 percent tariff on all Canadian imports.

Last Monday, Premier Dennis King told CTV News that many factors are still unclear, but information provided by Prince Edward Island's fiscal department showed the tariffs could take $250 million from a budget of just over $2 billion. is, reduce

"It's very, very, very significant in terms of the potential impact of job losses," King said. "You're talking about maybe 1,500 people, which is going to have a huge impact in a small place," he added.

"I hope none of these things come to pass, but these times are very uncertain economically," he continued.

The most important exports of Prince Edward Island to America include agriculture, fisheries, pharmaceuticals, life sciences and aerospace industries.

King said the province exports about $1.8 billion in goods to the U.S. each year, which is about 25 percent of Prince Edward Island's gross domestic product (GDP).

"It's a huge part of our day-to-day business," he said. And added: "This is a historical link between our economies. We need this continuation."

Last week, King accompanied a delegation of politicians and industry leaders from Prince Edward Island on a business trip to Maine, New Hampshire and Massachusetts to explain that the tariffs would hurt businesses and consumers on both sides of the border.

"We call these tariffs the 'Trump tax,' because ultimately, it's the end consumer who pays the additional costs of all these costs," he said.

King expressed hope that the interests of Prince Edward Island and their efforts in the United States will be "top of mind more than ever" as Donald Trump's inauguration approaches on Monday.

The group spoke to about 400 to 500 people, including governors, senators, mayors, business leaders and chambers of commerce. Those on the mission said everyone they met agreed that imposing tariffs on Canadian imports was not a good idea.

"We share common values," Ian McPherson, executive director of the Prince Edward Island Fishermen's Association, told CTV News. We have common infrastructure. "We want to see prosperity on both sides of the border."

He pointed out that the fisheries industries in the Maritime and Northeastern United States complement each other.
 "There are factories on both sides of the border that need products coming from the U.S. to Canada and from Canada to the U.S. in order to remain efficient and competitive."
 Greg Donald, CEO of the Prince Edward Island Potato Board, also told CTV News, "There's a long-term business relationship here." "Anything that affects those relationships is definitely a big concern for our industry," he said.

More than half of Prince Edward Island's potatoes are exported to the United States, both fresh and frozen.

Ray Keenan, co-owner of Rollo Bay Holdings, a family potato farm, said tariffs could lead to counterproductive production and higher prices for consumers.

"Our reaction to this depends on whether the tariffs will be imposed or not," he added. And he continued: "Undoubtedly, the market will react and finally the prices will go up at the point of sale."

Keenan said he wants to encourage suppliers to keep the trust.
 “We will get through this. We will come out stronger than before. "In the meantime, it can be painful."