Alberta buckles up for tariffs as Trump muses about Feb. 1 changes
CBC
Alberta businesses are preparing for a battle they don't want to be caught in the middle of following the latest threat from U.S. president Donald Trump.
After dodging tariffs for the majority of Trump's first day back in office, a reality check came late on inauguration day when the commander-in-chief returned to his narrative of imposing 25 per cent export taxes on Canadian goods.
"I think February 1st," Trump said in response to a question about whether or not he was still considering tariffs on Canada.
"Canada is a very bad abuser. They're allowing vast numbers of people to come in and fentanyl to come in."
The U.S. president Trump initially promised to impose tariffs on Canadian and Mexican goods on his first day in office.
He instead issued a trade memo directing federal agencies to evaluate the U.S. trade relationship with China, Canada and Mexico, according to Reuters.
Political leaders across Canada have prepared a plan that will levy immediate tariffs on $37 billion worth of American goods if Trump moves against Canada — rising to $110 billion if the president doesn't back down.
But not everyone thinks that's a good idea.
"Our businesses have made it clear that they don't want to be caught in the middle of a retaliation battle," said Ruhee Ismail-Teja, vice-president of policy and external affairs with the Calgary Chamber of Commerce.
"And we know that while we can impact the US's economy considerably because they rely on us, we're also quite a bit smaller. If we heard them, that also hurts us."
Ismail-Teja added that small businesses are responsible for 42 per cent of Canadian exports to the United States.
Trump's musings came as a surprise to those in Alberta's business community after nearly a full day when it seemed as though the issue had taken a back seat to other priorities.
"Unpredictability is the hallmark of Donald Trump," said Carlo Dade, director of trade with the Canada West Foundation, which is based in Calgary.
"He needs to make an example of us. I think he needs not only to show us making concessions, but he needs to show that he will use tariffs."
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