Niagara-on-the-Lake resident Dean Sanders has spent the past three years looking to take his business to the next level — but now, after securing a new building permit on March 6 for a 2,000-square-foot expansion of his sheet metal business, he’s unsure if moving forward still makes sense.
“I don’t know if I’m going to carry on — I don’t know if I want to,” he said. “Because if I’m working two days a week, what’s the point?”
Sanders fears U.S. tariffs could hit his business hard, especially considering three of his top five customers export south of the border.
With demand from U.S.-bound clients expected to drop, Sanders anticipates less work and fewer hours for staff.
On Feb. 1, U.S. President Donald Trump threatened 25 per cent tariffs on Canadian goods, initially set for Feb. 4. After a month-long delay, tariffs took effect March 4, which prompted Canada to impose retaliatory tariffs.
On Thursday, the U.S. announced it would pause tariffs on some Canadian goods until April 2, but only goods “compliant” with the Canada-U.S.-Mexico Agreement.
Sanders, self-employed for 38 years, opened Budget Sheetmetal Inc. in St. Catharines in 2009 after he moved to Niagara-on-the-Lake in 2007.
Tariffs are now all his customers talk about and uncertainty looms for everyone — including Sanders.
In 2015, he expanded his facility by 3,000 square feet to a total of 8,000. He spent $60,000 and three years working to secure this latest expansion to make his facility 10,000 square feet large.
Sanders said the circumstances are unfortunate, especially after overcoming high interest rates early on and then COVID-19. The business turned a corner and was thriving — until tariffs hit.
In 2023, 79 businesses in Niagara-on-the-Lake exported to the U.S., which supported about 1,667 jobs, according to Niagara Region’s employment survey.
While exact numbers for the town aren’t available, regional trade data suggests about 72 per cent of those businesses’ exports went to the U.S.
With so much of their business depending on U.S. sales, these 79 companies are at high risk from tariffs.
With the U.S. considering an additional 25 per cent tariff on top of the 25 per cent on steel and aluminum, Sanders fears an even greater impact — but he said he’s unsure just how bad it could get.
All five employees at the shop will see reduced hours no matter what, he said.
“I can’t have them sweeping the floor, so if we’ve got no work they’re gonna have to go on shorter time,” Sanders said.
Despite this, he has no plans for layoffs.
“They’re skilled and I need them,” he said.
Sanders hopes a drop in U.S. exports will help the business pivot to Canadian customers and avoid tariffs, but Canada’s smaller market poses a challenge to profitability.
“The U.S. is 10 times bigger than us,” he said.
He said it’s frustrating to face potential closure after decades of hard work, because of elements out of his control.
“I wouldn’t be a very happy person,” if he had to close, he said.
But if he doesn’t have to close the doors, he’ll feel a sense of Canadian pride.
“You’ve got to stay positive,” he said. “But at the moment, there’s a lot of dark clouds in the sky.”
“We need a silver lining and there’s no silver lining at the moment.”
The impact goes beyond directly affected businesses, says Mishka Balsom, CEO of the Greater Niagara Chamber of Commerce. Higher costs and affordability challenges will ripple through the economy.
Manufacturers will feel it first, but any business tied to U.S. trade — whether importing or exporting — will face new costs and operational challenges, said Balsom.
