By Ian Gustafson

25 per cent tariffs

Potential incoming U.S. tariffs could impact local economy

Jan 22, 2025 | 1:44 PM

U.S. President Donald Trump stood buy his claims on Monday that his administration will move forward with 25 per cent tariffs on Canadian imports at the beginning of February.

The initial threat from Trump came in November when he proposed tariffs on Canadian imports until the country stops drugs and illegal immigrants from crossing the U.S. border.

Whether he goes through with it or not, Canadians won’t know until Feb. 1 but the potential impact could be devastating for the economy.

Red Deer District Chamber CEO Scott Robinson stood buy his earlier prediction that Trump won’t go through with the tariffs because of the impact it’ll also have on the U.S.

“If they do, we do know that it’s been estimated it would cost each Canadian roughly $1,900 per household in lost revenue and it would probably put our country into an automatic recession,” he said.

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“It would affect the American side as well and that’s the part I think that’s the message everyone is trying to get down south that tariffs here would impact your country as well. Whether it be at the gas pump or other products they’re buying from Canada.”

According to the Canadian Press, more than 77 per cent of Canadian exports go to the U.S.

Robinson explained that the oil and gas sector is a major export for Canada and without it, would most likely run a trade deficit. America, however, would be in trouble without that import.

It would also have a significant impact on other imports such as beef and grain products.

Locally, Nova Chemicals, which exports oil and gas to the U.S., would be impacted. The farming and ranching industry would also be hit hard in Central Alberta.

Robinson said Canada has made changes to border security and made an effort to forming relationships with each state.

Canada has put in approximately $1.3 billion into border security to help appease the U.S., so at this point, only time will tell how serious Trump is in following through.

“In terms of the history of Trump and the way he operates, he has a tendency to use these as levers to get attention,” he said.

“It’s hard not to see where [America] would see the light here in short order because they’ll feel it. Once your constituency feels it then there’s going to be a lot more talk about it,” he said. “With that being said Canadians are much more aware to what’s going on than Americans are in terms of not being a big talking point in the U.S. Mostly they’re focused on immigration issues.”

Meanwhile, on Tuesday Prime Minister Justin Trudeau said Canada will respond if tariffs are implemented saying, “everything is on the table.”

“Our response will be robust and rapid and measured, but very strong. The goal will be to get those tariffs off as quickly as possible.”

-With files from The Canadian Press