How Canada’s only rice mill hopes to avoid disruptive counter tariffs

Caught in the crossfire of a trade war between Canada and the United States are local businesses trying to figure out how to dodge soaring costs. 

Dainty Foods is one of them. The company, which runs Canada’s only rice mill in Windsor, Ont., is currently filing for an exemption to avoid counter tariffs implemented by the Canadian government. 

Dainty Foods CEO, James Maitland, says since early March they’ve had to pay a 25 per cent tariff on their rice imports from the United States. These imports fall under $30 billion dollars worth of goods that the Canadian government decided to tariff in response to trade action from the U.S. 

According to Maitland, the company imports 80 per cent of its rice from the United States. 

Without an exemption, Maitland says the business will have to restructure its “entire supply chain.”

“We really are hoping for that exception, because we’ll actually have to exit some lines of business [if we don’t]. We don’t want to do that. We’re in growth mode today,” he said.  

That growth includes a $40 million dollar facility planned for the United States. But Maitland says that investment, which would create 250 American jobs, is on pause as they navigate tariffs. 

At least one other business, Cavalier Tool and Manufacturing Ltd., told CBC News it also might apply for an exemption on reciprocal tariffs Canada has placed on aluminum and steel.

Government has relief programs in place

In an emailed statement, a Department of Finance Canada official said it has received remission requests and is processing them. Remission requests provide an exemption. 

It wouldn’t say how many it’s gotten so far, but said these decisions are approved by the department of finance. 

It also said that there are two programs that can help provide relief: the Duties Relief Program and the Duty Drawback Program.

Finance Canada didn’t say how long businesses can expect to wait for their exemption request to be approved. The government has posted a list of information that companies should provide in their requests.

Dainty Rice told CBC News that while they’re hoping to hear about the exemption in the next few weeks, they’ve heard it could take up to eight weeks. 

“We’re just providing the information we can and our case as quickly as we can and as clearly as we can, so it’s a wait and see model right now,” he said. 

When asked about the exemption process, Windsor-Tecumseh-Lakeshore Liberal party candidate and incumbent Irek Kusmierczyk said the government wants to hear from businesses to know how this is impacting them. 

He says the government is working to “protect Canadians as much as possible,” with the counter tariffs, but that they also “absolutely want the American administration and the U.S. to feel the pain.” 

“They have to feel the pain for them to back off this absolutely insane track that they are on,” he said. 

Trade war has led to ‘a lot of stress’ on business

And while Dainty’s Maitland says Canada’s exemption process has been pretty straightforward, he says overall the ongoing trade action has been stressful. 

“A lot of stress, high cortisol, little bit of weight gain [and] a lot of lack of sleep,” he said, adding that the company is trying to avoid layoffs and passing on the cost to consumers as much as they can. 

While he’d like for things to go back to the way they were, Maitland says he doesn’t think that will happen any time soon. 

“I think we need to really understand that this is probably gonna take six months to a year to work through and we need to be prepared to do our best to absorb whatever impacts those are,” he said.