By Ian Gustafson

25 per cent tariffs

Red Deer District Chamber defends local businesses amid tariff threats

Feb 5, 2025 | 11:33 AM

The Red Deer District Chamber of Commerce has denounced the upcoming proposed 25 per cent tariffs on Canadian goods and 10 per cent on energy the U.S. government plans to implement potentially.

Originally, the U.S. planned to implement the tariffs on Feb. 4, but were paused for at least 30 days after Prime Minister Justin Trudeau spoke with President Donald Trump.

The Chamber said these tariffs pose a major threat to businesses across central Alberta. This includes increasing costs and limiting market access for local exporters.

“Tariffs are an anti-business move that create economic instability for businesses on both sides of the border,” said Scott Robinson, CEO of the Red Deer District Chamber in a media release.

“At a time when businesses are already navigating inflation, supply chain disruptions, and labour shortages, these tariffs further complicate the ability of Canadian companies to compete and grow.”

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For decades the two countries have had a strong trade partnership which has benefited both sides.

For Canada, the U.S. has unanimously been their largest partner with more than 77 per cent of exports headed south of the border.

The Chamber said an ongoing trade war between the two countries doesn’t benefit anyone. Instead, it could put jobs and affordability for many in jeopardy and impact small and mid-sized businesses as operational costs rise.

According to a recent survey from Chamber members, 16.87 per cent of respondents export goods or services to the U.S., and 25 per cent are aware of other local businesses that do.

In addition, 45.24 per cent of respondents import goods or services from the U.S., and 47.37 per cent know other businesses that do. 90 per cent of respondents are concerned about tariffs, with 45.24 per cent being very concerned and 47.62 per cent being somewhat concerned about their impact.

“Central Alberta businesses rely on strong trade partnerships to remain competitive,” said Mike Szyszka, President of the Red Deer District Chamber Board of Directors. “These tariffs put unnecessary strain on manufacturers, exporters, and local businesses that depend on cross-border trade.”

In collaboration with the Alberta Chambers of Commerce and Canadian Chambers of Commerce, Red Deer is defending local businesses by advocating against these trade barriers.

They fully support the Canadian government’s retaliatory tariffs that were also put on hold. Depending on the U.S.’s decision a month from now, Canada could reimplement those tariffs if needed.

The Chamber is also calling on Canada to diversify trade relationships beyond the U.S., strengthen domestic supply chains, and invest in critical infrastructure.

Focusing on expanding global trade partnerships by strengthening ties with European, Indo-Pacific, and other markets will create more options for exporters, as stated by the Chamber.

“This is a pivotal moment for Canadian trade policy,” added Robinson. “Central Alberta, as the economic heart of the province, is ready to lead in expanding market opportunities, reducing regulatory barriers, and ensuring businesses have the tools to thrive in a global economy.”