Calgary Could Face Significant Impact from U.S. Tariffs

Calgary has been identified as one of the Canadian cities most at risk from potential tariffs imposed by the United States, according to a recent report from the Canadian Chamber of Commerce.

Calgary's Economic Vulnerability

The report highlights that Calgary's economy heavily relies on exports to the U.S., with over 96% of its exports—valued at approximately $119 million—headed south of the border.

The report analyzed trade data from Statistics Canada and ranked 41 cities based on their susceptibility to U.S. tariffs. In this ranking, Calgary was noted among the most vulnerable.

Comparison with Other Canadian Cities

Saint John, New Brunswick, topped the list of most affected cities due to its large crude oil refinery, which processes over 320,000 barrels of oil daily, with more than 80% sold to the U.S. Lethbridge ranked 10th, primarily due to its agricultural exports, while Edmonton was rated 24th.

It is important to note that some cities with significant production capabilities, such as Fort McMurray, were not included in this report. However, exceeding tariffs would also critically impact these economies.

Concerns from Local Economic Leaders

Brad Parry, President and CEO of Calgary Economic Development, stated before any tariff delay announcement that these levies would create instability in the local economy, disrupting supply chains and increasing costs for businesses.

"These sweeping tariffs will disrupt supply chains, increase business costs, and inject instability into our economy," Parry emphasized.

Tariffs on Steel and Aluminum

The report arrives amid ongoing talks about U.S. tariffs. President Trump recently signed executive orders imposing 25% tariffs on all steel and aluminum imports from Canada, intensifying concerns for Canadian industries.

To address these issues, Alberta Premier Danielle Smith is traveling to the U.S. to lobby against these tariffs, stressing the negative impacts these measures would have on workers and businesses in both countries.

Widespread Impact Across Canada

Economists predict that these tariffs could hurt not only Calgary but also various cities across Southwestern Ontario, which are key players in Canada's automotive sector. They foresee severe consequences for local economies in areas relying on steel, aluminum, and forestry industries.

Stephen Tapp, Chief Economist at the Canadian Chamber of Commerce, noted that "the threat is far more local and personal" for some Canadian cities, highlighting the necessity for businesses and policymakers to prepare for potential economic challenges ahead.

Remaining Vigilant

While certain cities, particularly those on Canada's coasts, may have less to fear from tariffs due to their exports to Asia or Europe, the looming threat of tariffs is still significant. Candace Laing, president and CEO of the Canadian Chamber of Commerce, affirmed the importance of remaining vigilant and prepared for the possible implications of these trade measures.

Calgary, Tariffs, Economy