Why Saint John, N.B. would feel massive impact from U.S. tariffs

Political leaders and businesses in Saint John, N.B. are bracing for the impact of looming U.S. tariffs on Canadian goods.

Political leaders and businesses in Saint John, N.B. are bracing for the impact of looming U.S. tariffs on Canadian goods, saying the city is the most vulnerable in the country.

“Tariffs would be inflationary on both sides of the border and this could create a squeeze at the household level, which would be pretty challenging to navigate,” said Fraser Walls, board chair of the Saint John Chamber of Commerce.

On Feb. 1, U.S. President Donald Trump signed an executive order imposing tariffs on Canadian and Mexican goods. A day before the tariffs were to go into effect, Prime Minister Justin Trudeau and Trump had a phone call, after which Trump paused the tariffs for 30 days.

According to new research by the Canadian Chamber of Commerce, Saint John would be hit the hardest by U.S. tariffs. 

Using Statistics Canada trade data, the organization came up with a “U.S. Tariff Exposure Index” to look at the potential impact of threatened American tariffs on 41 Canadian cities.

The researchers said Saint John is the most vulnerable. The area is home to the Irving Oil refinery, the largest crude oil refinery in Canada. The refinery can process over 320,000 barrels daily, with more than 80 per cent of that oil exported south of the border.

In a statement last week, the refinery said it has had a “proud and strong relationship with the United States” since 1972.

“This tariff will result in price increases for our U.S. customers and have impacts on energy security and the broader economy,” the statement read.