The widening gap between the Canadian dollar and the U.S. greenback has some business in this province feeling the pinch.
Jonathan Earle from The Outfitters in St. John’s says new price lists delivered include higher costs for some goods – with suppliers blaming the low Canadian dollar.
The Canadian dollar dropped to .69 cents on the U.S. dollar due to an uncertain market caused by a trade war between the U.S. and Canada.
There could be a reprieve from even greater cost increases caused by tariffs, says Earle as he expects some suppliers to absorb the costs in the meantime.
“We’ve seen a couple of revised price lists. We’re dealing with probably hundreds of companies, but some of the larger ones have put out some revised price lists.”
“The exchange rate, that’s really driving (increases) so far from what we’ve heard. And we’ve had some vendors who’ve said, ‘listen, we’re going to absorb some of these tariffs at first’. And as we’ve seen, it’s a very fluid situation. Every day it seems to change, every week.”