Trade tensions escalate between US and Canada over unfair trade practices.
The Backstory: Understanding the Trade Tensions
The trade tensions between the United States and Canada have been escalating for months. The dispute began in 2018 when the US imposed tariffs on Canadian softwood lumber, citing unfair trade practices. Canada responded with its own tariffs on US steel and aluminum, leading to a prolonged period of trade tensions. Key events in the trade dispute: + US imposed tariffs on Canadian softwood lumber in 2018 + Canada responded with tariffs on US steel and aluminum + US imposed tariffs on Canadian dairy products in 2018 + Canada retaliated with tariffs on US pork and other products The trade tensions have had significant economic implications for both countries.
He’s been preparing for this moment for years.
Preparing for the Counter Tariffs
As the owner of Mt. WADDington Outdoors, Sam Waddington has been anticipating this moment for years. He’s been preparing his business for the potential impact of the counter tariffs on U.S. products. Waddington has been diversifying his supply chain, sourcing products from countries other than the US. This includes importing goods from China, Japan, and other countries. He’s also been investing in local production, partnering with Canadian manufacturers to produce some of his products. Some of the products that Waddington imports from China include: + Ski jackets + Tents and tarps + Camp stoves + Fuel + Knives
+ Custom-made ski jackets + Tents and tarps made from locally-sourced materials + Camp stoves made from Canadian steel
The Impact on the Outdoor Industry
The counter tariffs on U.S. products will have a significant impact on the outdoor industry.
“Mountain Safety Research, Outdoor Research and Them-a-rest, Big Agnes, Backpackers Pantry, Leatherman, DPS skis and even Nalgene, probably the most popular water bottle we sell, are all made in the [US].” Some of the cost increase would be passed along to customers, Waddington explained. And, while he already attempts to stock made-in-Canada products, some items, like stoves, can be hard to find locally. With most outdoor equipment being pretty expensive to begin with, this won’t be welcome news to many adventurers who love spending time outside. Look for Canadian-made gear and “new” used gear, whether it’s online, at secondhand shops or at gear swaps hosted by many outdoor clubs and local shops. You can also fix old broken gear and share gear items with fellow adventure enthusiasts. Some communities, schools and parks even offer “gear libraries” to lend out equipment, like this one in Ottawa.
The Impact of the Pandemic on the Outdoor Industry
The COVID-19 pandemic has had a profound impact on the outdoor industry, affecting not only the businesses but also the consumers who rely on these products and services. The pandemic has disrupted the supply chain, leading to shortages and delays in the delivery of outdoor gear and equipment.
Supply Chain Disruptions
The Impact of a Weak Canadian Dollar
A weak Canadian dollar can have far-reaching consequences for outdoor enthusiasts and adventure-seekers. Here are some key effects to consider:
The Impact of Tariffs on Small Businesses
Tariffs are taxes imposed on imported goods, and they can have a significant impact on small businesses like Simon Hayter’s. As a fisherman, Simon relies on importing equipment and supplies from other countries to run his business. However, with tariffs, these costs could increase, making it harder for him to compete with larger businesses. Key effects of tariffs on small businesses: + Increased costs: Tariffs can lead to higher prices for imported goods, making it harder for small businesses to compete. + Reduced competitiveness: Higher costs can make it harder for small businesses to compete with larger businesses that have more resources. + Limited access to markets: Tariffs can limit small businesses’ access to international markets, making it harder for them to sell their products.
The Impact on Outdoor Recreation
The impact of tariffs on small businesses like Simon Hayter’s is not limited to the fishing industry. Outdoor recreation businesses, such as those that sell camping gear, hiking equipment, and outdoor apparel, are also affected. Key effects of tariffs on outdoor recreation businesses: + Reduced availability of gear: Tariffs can make it harder for outdoor recreation businesses to import the gear they need to sell.
This surcharge will be applied to all clients who are not residents of the United States. The surcharge will be added to the client’s existing tax bill, and will be paid by the client.
Introduction
The Office of Tax and Benefits (OTB) is introducing a new policy that will impact American clients who are not residents of the United States. The policy, which is set to take effect soon, will impose a 25 per cent surcharge on all clients who are not US residents.
What is the purpose of the surcharge?
The Rise of Local Content
In recent years, there has been a growing trend towards supporting local businesses and media outlets. This sentiment is reflected in the decision by Outdoor Television Network (OTB) to partner with Explore Magazine. The “Buy Canadian” movement has been gaining momentum across the country, with many consumers actively seeking out products and services from Canadian companies. Key benefits of supporting local content include:
- Job creation and economic growth
- Preservation of local culture and heritage
- Increased diversity and representation
- Support for small businesses and entrepreneurs
- Increased exposure for Explore Magazine and its content
- Enhanced credibility and reputation for OTB
- Support for the local outdoor industry
- Opportunities for collaboration and innovation
The Partnership Between OTB and Explore Magazine
The partnership between OTB and Explore Magazine is a prime example of this trend. By partnering with a 100 per cent Canadian outdoor media brand, OTB is able to tap into the local market and support the growth of a Canadian business. This decision is not only beneficial for OTB, but also for the local community and the wider Canadian economy. Benefits of the partnership include:
The Impact on the Local Community
The partnership between OTB and Explore Magazine is having a positive impact on the local community. By supporting a 100 per cent Canadian outdoor media brand, OTB is able to invest in the local economy and create jobs. This decision is also helping to preserve the local culture and heritage, and promoting diversity and representation in the outdoor industry.
The COVID-19 pandemic has brought about a surge in outdoor recreation, with many people seeking refuge from the confines of their homes. As a result, BC Parks has seen a significant increase in visitation, with some parks experiencing a 150-200% increase in the number of visitors.
The Rise of Pandemic Recreation
The COVID-19 pandemic has brought about a significant shift in the way people engage in outdoor recreation. With many countries imposing lockdowns and social distancing measures, people have been forced to seek alternative ways to stay active and connected with nature. This has led to a surge in outdoor recreation, with many people turning to parks and trails for exercise, relaxation, and socialization.
The Impact on BC Parks
The increase in visitation to BC Parks has put pressure on already strained park and trail systems. The parks are not equipped to handle the increased demand, leading to overcrowding, erosion, and damage to the environment.
The Rise of Peak Season Crowds
As the summer months approach, many outdoor enthusiasts are gearing up for their favorite hiking, biking, and camping trips. However, with the increasing popularity of outdoor activities, many trails and destinations are experiencing a surge in crowds.
The Canadian Outdoor Industry in the Face of US Tariffs
The Canadian outdoor industry is facing a significant challenge with the recent imposition of US tariffs on Canadian-made outdoor gear. This development has sparked concerns among outdoor enthusiasts and industry stakeholders, who are looking for ways to mitigate the impact of these tariffs.
Understanding the Impact of US Tariffs
The US tariffs on Canadian-made outdoor gear are a result of the ongoing trade tensions between the two countries. The tariffs, which range from 10% to 25%, are imposed on a wide range of outdoor products, including camping gear, hiking boots, and clothing. These tariffs are expected to increase the cost of outdoor gear for consumers, making it more expensive for them to participate in outdoor activities.
