Oil and gas may be taxed at a reduced rate under tariffs announced Saturday by U.S. President Donald Trump, but the rest of Alberta goods travelling across the border will face levies of 25 per cent starting Tuesday.
While the specifics are still being ironed out, the journey to get here has been exhausting for some industry groups.
Bianca Parsons, executive director of the Alberta Food Processors Association, says the province’s food sector contributes $28 billion to the provincial economy. But that could change once tariffs are in effect, she says.
“It’s a tricky day because this is a long time coming,” Parsons said. “We’ve been hearing little pieces of information.”
The wait has been nerve-wracking. “We don’t know what that means,” Parsons continued. “How do we get it over the border? What paperwork is involved? Where do you pay the tariff?… We need to know the whole picture to see how long this is going to take for it to be able to affect a sticker price.”
Parsons says there’s already talk among some businesses about packing up and moving south of the border to avoid extra costs. “That allows them to make the products that they sell in the United States, in the United States,” Parsons said. “For Alberta and Canadian businesses, some of them move and we lose jobs.”
Parsons says it’s also been challenging for companies to pitch investors. “To have investors or show to your clients that this is a wonderful time to invest in your product, it’s scary when you yourself are dealing with uncertainty.”
How Trump’s tariffs impact Canada’s economy
The weeks leading up to Saturday’s tariff announcement caused apprehension for Calgary’s Chamber of Commerce.
Ruhee Ismail-Teja, the chamber’s vice-president of policy and external affairs, says it helps that there is now the clarity that tariffs are coming and information on how Canada will respond. “One of the biggest challenges for the chamber and for the business community is to cut through the noise.”
Ismail-Teja says Alberta businesses will suffer severe consequences from tariffs. The chamber is calling on the federal government to de-escalate tension with the U.S. and ease interprovincial trade restrictions.
“There’s a lot of conversation about retaliation, and our business community has made it clear that, while it’s on the list of options, it’s very close to the bottom,” she said.
“There is a lot of diplomacy that should be done first, and really, the priority should be de-escalating the tariffs and removing them as quickly as possible.”
Economist Moshe Lander says even talk of tariffs, no matter when they arrive, strains the economy. “That ends up weighing on people’s psychology. If they’re now fearful of what this means, it does become a drag on the economy,” he said. “It’s probably damaging business and consumer confidence at this point. When those drop, spending does tend to drop with it.”
Lander says Albertans have gone through price hikes before, especially during the COVID-19 pandemic and periods of inflation, and he advises people to be cautious with spending.
“Make sure your spending money in a non-wasteful way. I can’t tell you how much food goes to waste because people will say, ‘Oh the kids will eat it.’ And then the next thing you know, you’re sticking it in the garbage bag saying ‘I guess we never got around to it’,” he said. “You can’t do that now because it’s another cost of living and affordability issue.”