An increase to Canada’s industrial carbon tax took effect April 1, a move Portage-Lisgar MP Branden Leslie says will have ripple effects across agriculture, industry, and consumer prices. Leslie said while many residents noticed a jump in fuel prices overnight, the increase is not directly tied to the carbon tax. “The gas price increase that we’re seeing day over day here is more instability in Iran and obviously the Hormuz Strait,” he explained, noting global supply concerns are currently driving fluctuations at the pumps. Industrial tax increase less visible, but significant Leslie said the change taking effect April 1 is a 16 per cent increase to the industrial carbon tax, which applies to large emitters rather than consumers directly. “This is something that you and I don’t see on a daily basis, but it has a really, really large impact,” he said. He pointed to sectors such as fertilizer production, metal manufacturing, and other heavy industries as being directly affected, warning that higher costs for those businesses will eventually be passed along the supply chain. “These big companies that are paying this industrial carbon tax don’t just eat the cost,” said Leslie. “Ultimately, consumers see it with higher prices throughout our supply chains.” Concerns from agriculture sector Leslie said he continues to hear concerns from producers across the region, particularly around rising input costs and tight margins. While some farmers secured fertilizer earlier at lower prices, he warned the outlook for future growing seasons is uncertain. “This does not bode well for next fall if these prices stay the way they are and grain prices themselves don’t go up,” he said. He added that rising costs are already influencing decision-making on farms, with some producers opting to repair equipment rather than invest in new machinery. “Debt loads are high for farmers, and it's all adding up,” said Leslie. “With thin margins, with low prices, it’s difficult for everybody.” Related stories: Manitoba minimum wage increasing October 1st Midland MLA Lauren Stone to run again as PCs tackle cost-of-living Broader economic impacts Beyond agriculture, Leslie said the tax increase could also affect infrastructure costs, as industries like concrete production fall under the policy. “What does that mean for our municipal governments that have to pay higher price tags for new infrastructure projects down the road as well?” he asked. He also raised concerns about Canada’s competitiveness, arguing the policy may discourage investment compared to countries like the United States, which do not have a similar industrial carbon tax. “It makes us less competitive and ultimately makes it an easier decision for companies to relocate to other countries,” he said. Environmental debate and natural gas alternative While acknowledging the importance of addressing climate change, Leslie said he does not believe the industrial carbon tax is the most effective way to reduce emissions. “We should all care about the environment, and we should all be doing what we can,” he said. Leslie argued Canada could play a larger role in lowering global emissions by expanding exports of lower-emission energy, particularly natural gas, to replace higher-emitting fuel sources such as coal in other countries. “The amount of coal that’s used around the world that could be replaced by Canadian natural gas, for example, at overall far reduced emissions, that would be the best thing for our country and for the world,” he said. He added that because emissions are a global issue, policies should focus on overall reductions rather than where those emissions occur. “At the end of the day, emissions is a global problem,” said Leslie. “It doesn’t really matter where they stem from.” Leslie suggested that increasing domestic costs through taxation could shift production and emissions to other countries without achieving meaningful environmental gains. “If the goal of it is about environmental outcomes, it doesn’t really reduce emissions, it just transfers those emissions to a different country,” he said. Costs may take time to reach consumers Leslie said the effects of the industrial carbon tax may not be immediately visible to consumers but will become more apparent over time. “Everything is so interconnected,” he said. “Those costs are being passed on from business to business to, eventually, the consumer.” He added that rising costs may contribute to ongoing affordability concerns already being felt at grocery stores and beyond.