Alberta politicians, business leaders describe Trump tariff threat as ‘scary’

“Shocking, unexpected and terrified,” is however the CEO of the Calgary Chamber of Commerce, Deborah Yedlin, described her absorption to incoming U.S. President Donald Trump’s menace to motion an enforcement bid connected his archetypal time successful bureau (January 20, 2025) to enforce a 25 per cent tariff connected each products coming into the U.S. from Canada and Mexico arsenic good arsenic an further 10 percent tariff connected each imports from China.

“It makes nary sense,” said Yedlin. “I mean, radical were benignant of reasoning astir that 10 per cent number, but 25 per cent conscionable came retired of the blue.”

Citing erstwhile modelling by the Canadian Chamber of Commerce connected the interaction of conscionable a 10 per cent tariff, Yedlin said Canadians “could perchance spot a driblet successful economical maturation by 2.5 per cent, which would beryllium felt connected mean by astir $2,000 per household.”

Mitch Jacobsen, whose institution makes Rviita Energy Tea astatine it’s Calgary manufacturing works described the tariff menace arsenic “really scary, due to the fact that arsenic a Canadian institution exporting to the U.S. we already consciousness similar we are astatine a disadvantage, our logistics costs are high, we person the c taxation here, we marque everything locally truthful our expenses are precocious and if you adhd 25 percent connected apical of that it conscionable makes our merchandise uncompetitive.”

“If you’re a dollar oregon 2 dollars supra the adjacent merchandise successful retail, however bash you compete,” added Jacobsen.

He described the menace of Canada retaliating arsenic “even scarier.”

“A large portion of our proviso chain, being a Canadian company, comes from the U.S. truthful present we are getting deed connected the beforehand extremity wherever our outgo of goods are going up and past our user terms constituent is going to spell up excessively – truthful we are getting deed connected some sides, which is thing that’s decidedly precise scary,” added Jacobsen.

In her absorption to the tariff threat, Alberta Premier Danielle Smith said successful a societal media post that the Trump medication has “valid concerns related to amerciable activities” astatine the border.  But she added a immense bulk of Alberta’s vigor exports to the U.S. are “delivered done unafraid and harmless pipelines” which “do not successful immoderate mode lend to these amerciable activities.”

While Trump’s menace makes nary notation of exemptions for Canadian lipid and gas, Richard Masson of the University of Calgary School of Public Policy said it doesn’t marque consciousness to enforce a 25 per cent tariff connected Canadian vigor imports.

“We’ve had an interdependent continental vigor marketplace for decades,” said Masson.  “The U.S. has refineries successful the midwest – that are babelike connected lipid from the oilsands, that dense lipid and bitumen from lipid sands – implicit 3,000,000 barrels per time – and there’s nary substitute for it successful the U.S.”

“So if this tariff was imposed, those refiners would person nary substitute and they could extremity up with overmuch higher costs for their gasoline, diesel and pitchy (fuel), which is inflationary and wholly against what President Trump was talking about,” said Masson.

While Yedlin said it’s “really important and we request to beryllium capable to travel unneurotic arsenic a unified front,” to combat the tariffs, Smith besides took a changeable astatine the national government.

“We’ve had our ain practice successful Washington since 2005,” said Smith.  “Increasingly we’ve seen that we are the champion proponents of our ain interests, and we volition proceed to found those relationships,” said Smith.  “I precise overmuch similar to instrumentality a Team Canada approach, but I tin archer you that, Justin Trudeau hasn’t made it easy.”

Yedlin said we besides request to beryllium mindful of what past has taught america astir the interaction of tariffs and the points to Smoot-Hawley tariffs of the 1930s that resulted successful the U.S. slapping crippling tariffs – up to 40 per cent – connected each imports from different countries, successful an effort to support home workers.

Many economists blasted that commercialized warfare for worsening the impacts of the large depression.

Yedlin besides describes, Trump’s tariff menace arsenic “a spot of a aftermath up call.”

“We’ve agelong talked astir however we’ve been precise babelike connected the U.S. system for our exports,” said Yedlin. “You know, successful Alberta’s 90 per cent of our vigor exports spell south. 78 per cent of Canada’s GDP is exported south. It’s clip to alteration that equation.”

Jacobsen said the anticipation of a commercialized warfare is besides a reminder of the value of buying local.

“I deliberation its important for Canadian consumers, present much than every, if this tariff comes into place, deliberation of supporting section Canadian brands similar us, that manufacture present and make jobs successful our section community.”