Trump tariffs would be detrimental to Alberta’s economy: Calgary Chamber of Commerce

With Canada and the United States at an apparent crossroads in their trade and economic partnership, Calgary business advocates are sounding the alarm on the potential impact.

The Calgary Chamber of Commerce says the 25 per cent levy on Canadian goods that president-elect Donald Trump has been threatening would be detrimental to Alberta’s economy.

Ruhee Ismail-Teja is the Vice President of policy and external affairs at the Calgary chamber and says the stakes couldn’t be higher for industries on both sides of the border.

“It’s not often that we sound the alarm bells on public policy issues, this is really top of the list,” she says. “Thirty-four states have Canada as their primary trading partner and we know that both sides of the border have really struggled with inflation.”

She says blanket tariffs that increase the cost of goods would be inflationary and spell trouble for affordability in both countries.

“The cost of basic household necessities will increase, and that will put additional pressure on Canadian families,” she says. “It’s very difficult to have anyone else absorb the cost of these tariffs.”

Ismail-Teja says small businesses would be especially hit hard with 42 per cent of Canadian exports to the U.S. coming from small business. That’s something she says would be a particular problem for Alberta.

“Alberta has a lot of small businesses,” she says. “We anticipate that these tariffs would be felt right across our economy and through our job market as well.”

“We are very trade exposed in Alberta and energy has been top of the headlines, but agriculture matters a lot.”

Premier Danielle Smith revealed Wednesday that Alberta is refusing to sign on to a joint statement from all other premiers and the prime minister on a plan to respond to the tariff threats, saying the province will not agree to export tariffs on energy and other products.

The decision came after a first ministers meeting in Ottawa on Wednesday that was aimed at showing a united front.

In an effort to stave off Trump’s promised levy, Smith travelled south over the weekend for a face-to-face meeting with Trump at his Mar-a-Lago home in Florida.

Trump is promising the tariffs shortly after he takes office Monday. He has also suggested the tariffs are part of a larger strategy to annex Canada through “economic force.”

The federal government has not released details of their response plan yet and officials have said they need to wait and see exactly what Trump does after he takes office.

Ismail-Teja says a 25 per cent tariff would cost the Canadian economy close to $100 billion and 9 per cent of Canada’s overall GDP.