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The top 10 Canadian companies relying on American sales

Economists say U.S. President Donald Trump’s trade agenda has become “rife with contradictions and vague statements.” (Foto AP/Frank Augstein, Archivo) · ASSOCIATED PRESS

From cheese makers to the operators of continent-sprawling energy pipelines, Canadian companies earning big chunks of revenue in the United States have gone from bragging about access to American consumers and generating earnings in U.S. dollars, to spelling out strategies to withstand a trade war.

The latest deadlines from U.S. President Donald Trump’s White House suggest imported Canadian goods will be hit with a 25 per cent import tariff on March 4 (10 per cent on energy and critical minerals), as well as reciprocal tariffs that kick in April 2.

Of course, this could change at a moment’s notice, as Canadian officials continue negotiations with their American counterparts. On Wednesday, economists at Desjardins described a prevailing state of uncertainty for basically everyone.

“The whole situation is rife with contradictions and vague statements from the U.S. administration, which further clouds the issue for consumers, businesses, financial markets and policymakers,” Jimmy Jean and Marc-Antoine Dumont wrote in a research note.

“The main impact of imposing or simply threatening tariffs is a slowdown in economic activity, even if the goal is to increase local production,” they added.

With the fourth-quarter earnings season underway, executives from Canada’s largest companies are facing tough questions from investors about how Trump’s proposed levies could impact their bottom line. For many, the situation is not as simple as manufacturing in Canada, and selling in the U.S. Many have vast operations south of the border staffed by American workers.

In a recent report, New York-based Syntax Data used U.S. revenue as a starting point to understand which companies are potentially most at risk if higher prices for Canadian goods spur American consumers and businesses to seek alternatives.

Canadian fertilizer giant Nutrien (NTR.TO)(NTR) tops Syntax Data’s list, with 60.8 per cent of its annual revenue generated in the U.S., amounting to US$17.66 billion. America relies on Canada for more than 80 per cent of the potash used to nourish its crops, leaving farmers particularly exposed to the impacts of a trade war.

“The tariff costs and impact will be passed on,” Nutrien CEO Ken Seitz told analysts on a post-earnings conference call last Thursday. “It is going to mean rising costs for the U.S. grower.”

Next on the list is Canadian pipeline giant Enbridge (ENB.TO)(ENB), with 45.5 per cent of its annual revenue coming from the U.S., amounting to US$14.98 billion.

“We view the impact on volumes in our systems to be negligible in a tariff situation,” Colin Gruending, Enbridge’s president of liquids pipelines, said on a recent call.




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