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As New Tariffs on Canada Loom, Kennedy Warns of Dire Impacts on Regional Economy

Kennedy Calls For Cooler Heads To Prevail Alongside Leaders From Cross-Section Of WNY Economy
New Tariffs On Canada Would Impact More Than 27,000 Jobs In Kennedy’s District, Which Sees $608 Million In Goods Purchased By Canada Every Year
 

BUFFALO, NY — Congressman Tim Kennedy (NY-26) stood with business leaders representing a cross-section of Western New York’s economy to warn against the dire consequences of implementing a 25 percent tariff on Canadian imports to the United States, which the Administration is set to enforce February 1. In response to this proposal, Kennedy has joined his colleagues in introducing H.R. 407, the Prevent Tariff Abuse Act, which would require Congressional approval of new tariffs, ensuring that Congress remains an equal partner in setting economic policy.

“Canada is not our competitor nor our adversary—it is our closest ally and trading partner, with tightly intertwined economies and cultures,” said Congressman Kennedy. “This proposal for a 25 percent tariff on goods imported from Canada threatens to set off a disastrous trade war and is a direct and dire threat to our regional economy. As hardworking families continue to deal with inflation, the last thing we should do is make the cost of living even more expensive. That is precisely what these tariffs would do. It’s time for cooler heads to prevail.”

According to the Canadian government, trade with Canada supports more than 27,000 jobs in Kennedy’s Congressional District, which sees $608 million in goods purchased by Canada every year. Kennedy was joined by a broad cross-section of the regional economy, including steel fabrication, craft brewing, logistics, and construction. Kennedy led the push against tariffs at Rigidized Metals, which is headquartered in Buffalo, New York, exports and imports millions of dollars of finished and unfinished steel products to and from Canada, and employs more than 50 workers.

“Rigidized Metals is proud to manufacture our products in the United States,” said Rick Smith, President of Rigidized Metals. “Our finished products can be found in projects across the United States, Canada, and around the world. The proposed tariffs on Canadian imports, as well as retaliatory tariffs, threatens our supply chain and the good-paying jobs our company supports. We thank Congressman Kennedy for his efforts to protect our local economy.”

“Placing a heavy tariff on all imports from our largest trading partner will raise costs and drive inflation on employers and families across the Buffalo Niagara region,” Buffalo Niagara Partnership President & CEO Dottie Gallagher said. “Canada has long been our closest trading partner and ally, and its recent $1.3 billion investment in border security proves that Canada remains committed to our mutually beneficial partnership. Our federal leaders must stick to trade policy that encourages growth and investment, and unlocks the power of our cross-border economy.”

"A 25% tariff on Canadian goods would be a major blow to both Canadian and American businesses, driving up costs, disrupting supply chains, and weakening our shared economic competitiveness,” said Dean Wood, CEO of BorderWorx Logistics and Board Member of World Trade Center Buffalo Niagara. “Instead of creating barriers, we need policies that strengthen trade and support jobs, while protecting and safeguarding our countries on both sides of the border."

“Buffalo has a housing crisis that can only be solved by constructing new units across the city,” said Cedarland Development CEO Kevin Dagher. “Cedarland is playing its part by constructing dozens of new homes on Buffalo’s East Side, which will open the dream of homeownership up for families who never thought it possible. Regardless of where a company sources their softwood lumber, these tariffs will lead to increased construction costs and will threaten the viability of future home building efforts. We proudly support Congressman Kennedy’s efforts to protect our Western New York economy and join him in urging against the implementation of these tariffs.”

“In every corner of the city, craft brewers putting down roots has led to the strengthening of local neighborhoods,” said Flying Bison Brewing Company founder Tim Herzog. “Flying Bison was founded on a belief that Buffalo can be a center for brewing innovation again, centered around the community that we call home. The brewing community proudly uses grains grown here in New York State, but like many industries, we rely on partners across the border in order to malt our grains and get them ready for a batch of our favorite local brews. The implementation of tariffs on Canadian imports threatens our supply chain as well as the New York farmers we rely on. Congressman Kennedy has supported our industry for years, and we appreciate his continued support of craft brewers and the impact we have locally.”

"The majority of the grain we use to make our beer comes from Canada,” said Jeff Ware, President of Resurgence Brewing. “Ingredient and packaging costs across the board have increased significantly since Covid. Margins are already very tight. Obviously any type of tariff would have a negative effect on our business and bottom line."

“Some manufacturers we’ve spoken with are very concerned about a potential 25% tariff imposed on Canadian imported goods. That much of an increase in the price of imported materials could have an adverse effect on many of our local businesses by raising supply chain costs. I think it’s important to consider all of the short and long-term implications for our regional companies that do a lot of cross-border business,” said Erie County Industrial Development Agency President and CEO John Cappellino.

The border between the United States and Canada includes more than 100 international crossings and stretches over 5,000 miles, representing the largest international land border in the world. According to the Bureau of Transportation Statistics, 4 million personal vehicles crossed from Canada into the United States in 2023 through Western New York along with approximately 890,000 trucks. According to the Niagara Falls Bridge Commission and the Public Bridge Authority, more than 940,000 trucks crossed from the United States into Canada in the same period. 

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