Peterborough Blogs
Voice of Business: Everything Tariffs: Local Panel Insights, Federal Support and Economic Impact
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This week on Voice of Business, we are discussing the impact of tariffs and what has happened since their implementation.
Tariffs came into effect on March 4, and we recently hosted a well-rounded panel with industry experts to examine their effects. This week, we will explore how the Canadian government has responded and what it means for businesses.
March has been a volatile and concerning month for our members and local businesses. As of March 4, at 12:01 a.m., U.S. tariffs took effect due to Canada’s perceived inaction on Fentanyl-related concerns. In response, the Canadian government responded with counter-tariffs on $30 billion worth of goods. If U.S. tariffs remain in place, total Canadian countermeasures could increase to $125 billion, totalling $155 million in tariffs on U.S. imports. The affected products such as electric vehicles, fruits, vegetables, beef, pork, dairy, electronics, steel, aluminum, trucks, and buses. Currently, the list of affected goods includes orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain pulp and paper products. On March 6th, the U.S. announced that CUSMA-related products, including auto parts, would be exempt from tariffs until April 2nd. Canadian officials later confirmed that approximately 40per cent of Canadian exports to the U.S. would be exempt and that Canada would not proceed with the second wave of $125 billion in tariffs until April 2nd. Despite Canada appointing a Fentanyl Czar and increasing border security measures, these efforts have not been sufficient to prevent U.S. tariffs. With $3.6 billion in goods and services crossing the border daily, these tariffs will have a substantial impact on jobs, industries, and local businesses. The effects are already being felt. Businesses exporting products to the U.S. are experiencing financial strain, with some anticipating layoffs and price increases to offset rising costs. Supply chain disruptions are also expected, as importers of affected goods will face higher prices. Consumers will bear the burden through increased costs at checkout. The Canadian Chamber of Commerce (CCC) has been actively advocating for the removal of U.S. tariffs, estimating that their economic impact on every Canadian will be approximately $1,900. Canada remains the number one trading partner for 34 U.S. states, highlighting the deeply integrated nature of the supply chain. In Ontario alone, nearly one million Canadian jobs depend on Ontario’s U.S. exports, and 19,927 companies export to the U.S. These tariffs will create logistical and financial challenges, particularly for industries such as homebuilding, which rely on American products and will be forced to pass price increases onto consumers. Given the deeply integrated trade relationship between Canada and the U.S., supporting millions of jobs in both countries, it is clear that continued tariffs would cause significant economic damage.
Despite the challenges, there is some hope. Last week, Community Futures and the local Chamber of Commerce hosted a Tariff Panel discussion featuring industry experts.
Some Key takeaways from the panel included:
the importance of businesses connecting with provincial and regional Chambers of Commerce to explore new markets.
Panelists emphasized the urgent need for interprovincial trade reform to increase cross-border trade within Canada. Businesses were encouraged to participate in global trade missions with the government to diversify export markets.
Expanding port infrastructure was identified as a crucial step to improving trade efficiency.
Additionally, the panel highlighted that the U.S. may underestimate Canada’s leverage, particularly in sectors like agriculture, where Canada produces 90 per cent of the world’s potash, a critical resource for American farmers.
Although the trade war is beyond our control, recognizing these opportunities provides a sense of optimism. Canada is more unified than ever in its approach to economic resilience. Municipal governments are taking action, with both Peterborough County and the City of Peterborough committing to a “Made in Canada” procurement strategy to ensure local spending benefits local businesses. The Canadian government has also introduced several measures to support businesses affected by tariffs:
The Trade Impact Program, launched through Export Development Canada, will deploy $5 billion over two years to help exporters reach new markets, navigate economic challenges, and address issues such as currency fluctuations and cash flow shortages.
Additionally, $500 million in favourable loans will be available through the Business Development Bank of Canada to support impacted businesses and their supply chains, along with advisory services on financial management and market diversification.
Providing $1 billion in new financing through Farm Credit Canada to assist the agriculture and food industry with cash flow challenges, helping businesses adapt to changing market conditions. If your business is struggling with these challenges, please visit our Tariff Resources page for contact points and assistance. The situation is evolving rapidly, and while the future
remains uncertain, it is crucial that the Canadian government continues to develop strategies to support businesses through this difficult time.
Content provided by the Peterborough and the Kawarthas Chamber of Commerce.
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Voice of Business: What a High-Speed Train Means for Peterborough’s Economy and Tourism
/Peterborough is finally getting a high-speed passenger rail service.
This newly announced line will run between Toronto and Quebec City, with Prime Minister Trudeau confirming the project last week. The fully electric train will connect Toronto, Peterborough, Ottawa, Laval, Montreal, Trois-Rivières, and Quebec City, reaching speeds of up to 300 km/h.
The federal government has committed $3.9 billion over the next six years to support system development, including laying approximately 1,000 km of new tracks. This week on Voice of Business, we explore why this rail project matters, what businesses need to know, and what to expect next.
This rail line will serve a region of 18 million people with an economy worth over $850 billion. Once completed, it will reduce travel time between Toronto and Montreal to just three hours, positioning Peterborough as a prime hub for intercity and interprovincial trade. This project aligns with the federal government's commitment to reducing interprovincial trade barriers, opening new opportunities for local businesses to access broader markets.
Tourism, a $300 million industry in Peterborough, is also expected to benefit. Many international visitors rely on public transit, and a high-speed rail link will make Peterborough a more accessible and attractive destination. The Chamber of Commerce has been a strong advocate for this rail initiative.
“Ensuring Peterborough is a stop on the high-speed rail line has been a priority for the Chamber, as this is a key way to connect our community to the rest of the province,” said Gail Moorhouse, Interim President and CEO of the Peterborough and the Kawarthas Chamber of Commerce.
“Peterborough is an incredible place to work, live, and visit. We look forward to the train connecting our community and businesses to the province,” adds Vice President Joel Wiebe.
The Chamber has been deeply involved in this effort, starting as a founding member of the grassroots Shining Waters Railway organization. Over the years, it has worked closely with VIA Rail, VIA HFR, and now Alto to develop the business case for the rail line. "Having Peterborough as a major stop on this rail project is a win for the tireless advocacy work of the Chamber," says Wiebe.
The economic benefits of this project are substantial. The high-speed train will cut travel time between Toronto and Montreal in half, from six hours to three, making transportation more accessible and positioning Peterborough as a key destination. The increased connectivity is expected to boost tourism and create a spillover effect that benefits local businesses by attracting more visitors to the community. A study from the C.D. Howe Institute estimates the economic impact could range between $11 billion and $27 billion over a 60-year period (2039–2098), depending on whether the train operates at conventional or high-speed levels. While the project remains in the initial design phase, Peterborough’s position as a tourist destination with over three million annual visitors makes it well-suited to capitalize on this opportunity. Events like MusicFest, local sports teams, lakes, hotels, the Canadian Canoe Museum, and Trent University already draw significant traffic, and a passenger train will further increase accessibility.
With the train potentially cutting travel time significantly from Montreal to Peterborough, students, tourists, and business professionals will no longer be restricted to car travel, which currently takes nearly three hours.
It is worth noting that similar passenger rail proposals have been discussed in the past but never materialized. However, with this renewed commitment and funding, there is hope that Peterborough will finally become a key destination for high-speed rail. If realized, this project could transform the region, making Peterborough not just a stop on the map but a hub for travel, tourism, and economic growth.
Content provided by the Peterborough and the Kawarthas Chamber of Commerce.
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Voice of Business: Reconsidering Interprovincial Trade Barriers
/The temporary implementation of U.S. tariffs by President Donald Trump, followed by a pause until March 4, has reignited discussions about improving domestic trade.
In response, the Ontario Chamber of Commerce, along with many other provincial chambers, has renewed its call to remove interprovincial trade barriers.
With the U.S. being Canada’s largest trading partner and thousands of Canadian jobs relying on the American economy, it is crucial to look inward and mitigate potential risks associated with a trade war. The pause in tariffs has forced Canada to rethink its trade strategy, leading to efforts to strengthen relationships with European and other global partners. Amidst these shifts, calls to eliminate interprovincial trade barriers have gained momentum, as doing so could add an estimated $200 billion to annual GDP.
The debate over interprovincial trade barriers has persisted for decades, but recent U.S. trade policies have intensified the urgency. While removing these barriers may not replace Canada’s trade relationship with the U.S., experts argue that it is a crucial step toward economic resilience. This edition of Voice of Business will examine the impact of interprovincial trade barriers, current restrictions between provinces, and the future of interprovincial trade and its benefits for businesses.
Interprovincial trade barriers create inefficiencies in multiple industries, including product sales, trucking regulations, and labour mobility (licensing and certification requirements). One of the most well-known examples is alcohol sales. Each province has its own regulations for selling alcohol, making it difficult for businesses to operate across borders. These barriers increase compliance costs and reduce business opportunities.
For instance, in Quebec, only the provincial alcohol corporation, Société des Alcools du Québec (SAQ), has the legal authority to import alcohol. Even individuals bringing alcohol into Quebec must file an online declaration form, regardless of whether the alcohol is a gift or personal purchase. This creates significant hurdles for Ontario businesses trying to expand into Quebec.
Another major barrier is trucking regulations. Different provinces impose varying restrictions on truck weights and loads, limiting the ability of businesses to transport goods efficiently. For example, Nova Scotia enforces strict weight limits, restricting certain types of cargo from entering the province. Additionally, direct-to-consumer shipping alcohol is restricted in several provinces, further complicating interprovincial commerce. While these regulations are often intended to protect local businesses, they ultimately hinder economic growth and business expansion.
The federal government has acknowledged these challenges and has expressed its commitment to addressing them. However, because trade regulations fall under provincial jurisdiction, the responsibility lies with the provinces to harmonize rules and ease restrictions. Some progress has been made. In 2017, the federal, provincial, and territorial governments signed the Canadian Free Trade Agreement (CFTA), committing to reducing trade barriers. In early 2024, agreements were approved for 17 of the 30 restricted sectors, but key barriers remain. Provinces have taken independent steps, such as Alberta and British Columbia reducing alcohol trade restrictions and the Atlantic Growth Strategy (launched in 2016) harmonizing licensing requirements for skilled trades.
With new U.S. tariffs on steel and aluminum already in place and more expected in early March, Canada must act quickly to support businesses. By removing interprovincial trade barriers, businesses can offset some of the negative effects of external trade restrictions and strengthen the domestic economy. Minister of Transport, Anita Anand has suggested that trade barriers could be eliminated within a month if provinces collaborate. However, achieving meaningful progress requires a coordinated effort to streamline trade regulations, standardize trucking policies, and improve labour mobility.
By fostering a truly open domestic market, Canada can better support its businesses and ensure long-term economic growth—regardless of external pressures.
Content provided by the Peterborough and the Kawarthas Chamber of Commerce.
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Voice of Business: Addressing Ontario’s Family Doctor Shortage: Where Healthcare, Governance, and Business Intersect
/This week on the Voice of Business, we’re tackling an issue that many in Ontario are familiar with, including right here in Peterborough: the growing shortage of family doctors.
It’s not just about healthcare—this is something that impacts local businesses, the economy, and thousands of people in our community.
Currently about 2.5 million people don’t have access to a family doctor. Locally, it’s estimated that by next year, around 63,000 people in Peterborough will be in the same boat. Municipalities everywhere are struggling to recruit doctors, often competing in what some have compared to a “Hunger Games” style race—where only the communities with the biggest budgets and best incentives can win. Physician recruiting and retaining is thus a multifaceted issue with several intersecting factors that requires focused policy attention.
With a growing number of people without family physicians we can see the effects where this can unintentionally strain local hospitals. A study by Ontario’s Auditor General found that one in five patients goes to the hospital simply because they don’t have a family doctor. This leads to pressure on emergency services, forcing patients with severe medical needs to wait longer while lower-acuity cases backlog the system. It’s a reminder of what happens when there is an unprecedented family physician shortage.
While many municipalities work to compile family physician recruit teams, it remains a challenge as family medicine can be seen as a daunting and unattractive option for medical students. The Ontario Medical Association (OMA) has shed light on this trend: as of 2024, family physicians are paying between 30% and 50% of their income on overhead expenses. For any business owner, seeing nearly half your revenue absorbed into overhead costs is uninspiring—this is no different for family doctors.
The number of family physician vacancies highlight this trend further. Family physician vacancies rose from 30 in 2020 to 108 in 2024. Out of the 560 residency positions for family medicine that year, 108 went unfilled. These vacancies highlight how family medicine is becoming less appealing, not just financially but in terms of workload.
Administrative burdens further exacerbate the issue. Family doctors spend an average of 19 hours per week on paperwork—40% of their total working time. Tasks like processing sick notes consume a large portion of a physician’s work. While the Ontario government has waived the need for sick notes for absences up to three days, many doctors continue to call for their complete removal. This reasoning lies behind the idea that every minute spent on unnecessary paperwork is a minute they could be spending with patients.
Then there’s licensing. Locally, a study from a municipality in Peterborough County found that licensing family physicians can take up to four months. For a region where over 36,000 residents lack a family doctor, streamlining these processes is crucial. Quicker licensing would mean faster access to care and less reliance on overburdened emergency departments.
Peterborough County and the city of Peterborough are doing their part by hiring physician recruitment coordinators to attract more family doctors. Yet, smaller communities like ours face a unique challenge competing with hundreds of other municipalities. Some municipalities such as Bracebridge, St. Catherines and Brockton have attributed this to a “hunger games” approach where the municipality with deeper pockets can present more attractive packages, leaving smaller areas like Peterborough at a disadvantage.
All these challenges point to a bigger issue: the need for decisive government action. While Ontario has made progress—like easing the burden of sick notes for short absences more still needs to be done. Following communication with the city of Peterborough and Peterborough County on their goals to help in recruiting family physicians, the following measures were discussed below:
· Address overhead expenses to make family medicine a more viable and attractive career choice.
· Set fair recruitment standards to create equal opportunities for municipalities to recruit family physicians.
· Streamlining administrative processes to accelerate the timeline for family physicians to receive their licensing to practice.
At the end of the day, family physicians aren’t just healthcare providers—they’re business owners too. Their well-being directly impacts our workforce, employers, and business owners. A stronger healthcare foundation means a stronger community for all of us.
Content provided by the Peterborough and the Kawarthas Chamber of Commerce.
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Voice of Business: The Uncertain Future: A Look Into the Implications of U.S Tariffs and a Looming Election
/Recent months have seen a turbulent political climate in Canada and challenges in the relationship with the U.S.
This week's VOB explores the implications of proposed tariffs on Canadians and Canadian businesses, the historical context of similar situations and the potential economic fallout of this looming issue.
In November 2024, President-Elect Donald Trump announced his intent to impose a 25 per cent tariff on all goods from Canada and Mexico unless both countries address issues related to drug and migrant flows across the border. In response, Canada pledged $1.3 billion in new spending for border security although legislative action on this plan is stalled due to Parliament’s prorogation until March 24, leaving key details in limbo.
The potential consequences of these tariffs are evident. Experts estimate that Canada’s GDP could decrease by more than 2.4 per cent, contributing to significant inflationary pressures and the loss of as many as 1.5 million jobs. The impact wouldn’t be isolated to Canada—the U.S. is also projected to see a 1 per cent reduction in its GDP if these measures proceed. These tariffs would affect manufacturers, employers, and consumers alike, creating widespread disruption and economic strain.
This is not Canada’s first experience with Trump-era tariffs. In 2018, he imposed a 25 per cent tariff on steel and 10 per cent on aluminum products. Canada responded with its own $16 billion in tariffs on U.S. goods before both nations reached an agreement in 2019. A similar cycle repeated in 2020 with the introduction of additional 10 per cent tariffs by the U.S., countered by Canada. Prime Minister Justin Trudeau has signalled that Canada will implement countermeasures if the proposed January 2025 tariffs go into effect.
The automotive sector, which sources 20 per cent of its inputs from the U.S., is one of the industries most vulnerable to cost increases. Other affected sectors include energy, chemical and plastic manufacturing, forestry products, and machinery—all susceptible to supply chain disruptions and rising costs. Small and medium-sized businesses, which account for 40 per cent of Canada’s exports to the U.S., would face similar challenges, with tighter margins and declining sales potentially leading to widespread job losses. In Ontario alone, the potential toll could reach 500,000 jobs.
In preparation, the Canadian government is considering retaliatory tariffs, targeting products such as toilet paper and orange juice, although specific measures remain under development. This situation, experts suggest, is part of Trump’s broader negotiation strategy—a high-pressure tactic aimed at achieving stricter border security measures by leveraging extreme demands.
While the federal government’s response is on hold due to Parliament’s prorogation, several provinces have proactively bolstered border security resources. For businesses, preparing for the potential tariffs is vital. Andrea Schaffer, an expert in international trade, recommends business conduct a “thorough supply chain assessment to identify risks, planning for both 10 per cent and 25 per cent tariff scenarios, building six months of cash reserves, and renegotiating contracts to include tariff provisions and limit financial exposure.”
Though businesses can take steps to mitigate the potential impacts, support from all levels of government will be critical in navigating the challenges ahead. The uncertainty surrounding these tariffs underscores the importance of proactive planning and coordinated action to protect the economy and the workforce from their far-reaching effects.
Content provided by the Peterborough and the Kawarthas Chamber of Commerce.
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Voice of Business: Navigating the Holiday Tax Break
/This past month has been challenging for businesses and organizations across Canada.
With postal strikes affecting businesses across Ontario, we’re diving into some news that could shake up our holidays for businesses and shoppers across Canada. Starting this Saturday, December 14th, 2024, the government is rolling out a GST/HST tax exemption on various products until February 15th, 2025.
The GST/HST offers zero rate taxes on multiple products. The following products are:
Food
Beverages
Restaurants, catering, and other food or drink establishments
Children’s Clothing and Footwear
Children’s diapers
Children’s car seats
Children’s Toys
Jigsaw Puzzles
Video Game consoles
Physical Books
Printed Newspapers
Christmas and Similar decorative trees
