Water Haller: Tariffs and the Water Sector

The recent threats of tariffs from the US, and the prospect of retaliatory tariffs, certainly has everyone in our water sector concerned – here in Canada and in the US.

 

We thought Covid-19 created uncertain times as we quickly found ways to adapt, but the current leadership in the US is turning everything upside down. As our economies are so integrated, almost every economist has predicted that these tariffs will hurt both sides and a prolonged trade war will be very harmful for communities on both sides of the border. But President Trump "seems” determined to proceed.

 

CWWA has been working with the provincial and regional water associations across Canada to prepare formal responses, but there is still so much uncertainty. It is hard to tell which of the US President’s thoughts are sincere and which are just part of his negotiating tactics. His behaviour can only be described as erratic - half of his statements are proven to be false when fact checked. Many of his threats are later walked back or deferred. His economic proposals are then intentionally blended with incendiary comments about Canada and our sovereignty. It is hard to decide just when we should speak up. Do we pick a fight and risk poking the bear unnecessarily or do we wait it out to see if it passes?

 

Our main strategy is to just to ask to be left out of this mess. We want to be recognized as a most critical sector as the health and economy of every community depends on safe drinking water, effective wastewater treatment and water for firefighting. We have met with Canada’s Trade Commissioners in Washington and in Ottawa and will be asking that our water/wastewater sector be exempt from all tariffs, if not forever, at least for a couple of years to allow time to transition to alternate suppliers. 

 

While CWWA represents the interests of Canadian municipal utilities, it is hard to ignore the impact this will have on our Canadian private sector partners. It becomes hard NOT to retaliate. If Canadian companies lose their US market, they will look to strengthen their Canadian sales, but if the US competition still gets to service Canada freely, that would not be fair either. So we are asking our good friends and partners at WEF and AWWA so initiate a similar effort on their side of the border – to call for an exemption for our sector. We understand this could be a dangerous request given the vindictive nature of the current US leadership.

 

I heard someone on the radio today say that politicians come and go, but that relationships last much longer. President Trump has gone out of his way to stir up anger and emotions in Canada, but we have to separate this administration from our century old relationships with AWWA and WEF and know that they are, and will always be our partners.