Tariff threats may drive Canadian businesses to Buffalo

BUFFALO, N.Y. (WIVB) — The recent threat of President Donald Trump's tariffs on Canadians has led Canadian manufacturers to look at Buffalo as a possible place to set up shop.

President of Invest Buffalo Niagara Thomas Kucharski said when the potential tariffs were announced back in December, he got a surge in Canadian businesses interested in moving to the United States.

One site they have their eyes on is Sumitomo Rubber in the Town of Tonawanda.

“From these conversations we're having at this point, it's like, well, it's either Western New York or we're just not going to do an expansion,” Kucharski said.

Kucharski said he received at least a dozen calls in the past six weeks from Canadian companies seriously exploring opening operations in the Buffalo Niagara area.

“We're kind of a place that, over the last 30 years, has kind of planned for stagnancy or decline," Kucharski said. "In reality we've grown quite a bit.”

All the leads coming in are from advanced manufacturers like technology hubs, agricultural businesses and battery storage companies, Kucharski said.

“It was almost like the last determining factor that motivated them to come down here and take a look at real estate and look at incentives and reengage with us," he said.

Kucharski said Buffalo is a great place for these companies to have a "Made in the U.S.A." label on their products.

“Cost of power, availability of water, partnering with the university on a project, heritage of industrial work here,” Kucharski said.

Canada in recent weeks has seen the value of their dollar drop, along with leadership concerns.

Kucharski said at the end of the day, it's about maximizing profits and minimizing risk.

“The ease of operating in the U.S. and the quality of our workforce — most of the folks are going to be employees of Western New York,” he said.

Kucharski said when it comes to where the companies will go, he can’t provide specifics due to non-disclosure agreements, but Western New York has multiple small sites along with existing ones that can be reused.

“It has the ability to access big power. It's got a water arrangement that's shared by several other manufacturers that are neighboring," Kucharski said. "We have sites for some, some we're going to be challenged."

Kucharski said there is no timeline as to when these companies will make a deal and start setting up production across the Peace Bridge.