US Tariffs Devastate Muskoka's Leather and Lumber Economy

A century-old trade war between the US and Canada has left a lasting impact on Muskoka's economy, particularly in the leather and lumber industries. The district was once a thriving hub of heavy industry, with tanneries and sawmills providing employment and exporting goods to the US.

In 1921, President Warren Harding imposed an emergency tariff that crippled the local economy. The following year, Congress enacted even higher tariffs, eliminating profit margins for Bracebridge's Beardmore Tannery. The company was forced to close down, leaving thousands unemployed.

Huntsville's Charles Shaw, owner of two remaining Anglo-Canadian tanneries, managed to keep his businesses afloat by selling leather to American customers and passing on the higher costs to US consumers. He also diversified into non-American markets, including those within the British Empire.