Buffalo, N.Y. (WBEN) - "We've always had a great relationship and integrated economy with Canada. I think we would be foolish to underestimate the impact this is going to have in terms of Canadians really feeling at home here, the way they have for decades," said Dottie Gallagher, President and CEO of the Buffalo Niagara Partnership while appearing on WBEN on Monday.
Tariffs against Canada and Mexico are due to take effect as of 12:01 a.m. on Tuesday
For some perspective, Gallagher noted that $116 million worth of merchandise is traded annually between Canada and New York State. Canada also sells more to New York State than it does to China.
She offered an example of how this will hit small businesses in Western New York.
"At Resurgence Brewery, the barley they use is from Canada. It goes back-and-forth across the border as it is processed. They will have to pay tariffs coming and going. They're estimating that it's a $50,000 additional cost that they either have to pass down to their customers or decide not to hire a bartender. This has real direct impacts," she added.
Indirect impacts include the psychological toll this is taking on Canadians.
"Pat Kaler, President of Visit Buffalo Niagara, told me that they suspended an advertising campaign encouraging visitation from Canada because people are so angry. They're not planning to come to Buffalo anytime soon," Gallagher noted. "They're upset with President Donald Trump. Additionally, we have an agreement with the Hamilton Chamber and Greater Niagara Chambers of Commerce. They're feeling angry and upset that this is happening."
In the long-term scope of it, Gallagher thinks how people behave going back-and-forth across the border will effect tourism. She points to the number of Canadians who are Bills and Sabres Season Ticket holders. The numbers are in the tens of thousands.
Another example is the auto business.
"In auto parts alone, at the North American border, auto parts cross eight times before final assembly. And Canadians are expected to pass a retaliatory tariff, so they will be charged each time they cross," Gallagher noted. "We have a lot of local companies that purchase metals from Canada, such as aluminum, and process it here, and then send it back to Canada. They will end up paying multiple times."
She fears this will become very unwieldy, very quickly.