What you need to know about a US-Canada trade war

As the US-Canada trade war continues, many Albertans are wondering what the American tariffs mean for them, and what they can do about it. There’s no question that the tariffs could have a big effect on both the Albertan and Canadian economies. 

Let’s dig into why. 

The impact of tariffs for Alberta 

First off, let’s define what a tariff is. It’s essentially a tax. But in this scenario, the taxes are applied to goods that a country imports. The businesses that import the products into the country pay the tariffs, but there are also financial consequences for domestic consumers and the country exporting the goods. 

The effect of the tariffs on energy products is top of mind for Albertans, and the outlook for the economy isn’t particularly positive—partly because it isn’t easy to find other markets we can sell to. 

“A tariff on Canadian oil is likely to be passed onto the US consumer in the form of higher prices, but also on the Canadian oil producer, who over time will face lower demand and lower prices for their output,” said Mark Parsons, ATB Chief Economist.

“For the oil and gas sector, the burden of the tariff will be shared by US consumers and Canadian producers,” Parsons said.  

“The US is the largest market for almost all of Alberta’s industries, making the tariff difficult to avoid by diverting to other markets.

Canadian businesses have had struggles, which is why there’s a push from politicians and consumers to actively support them. 

Spending money at local businesses across Alberta and Canada 

Trade turmoil caused by a country we’ve long considered a trusted ally has prompted many Canadians to consider how they can bolster more businesses right here at home. 

Politicians have gone as far as to call on Canadians to support jobs inside Canada by choosing the product made down the street or in the province next door. 

Websites like Made in Canada are taking the guesswork out of figuring out if a product is in fact Canadian and where to find it. 

In a clothing store, knowing if a garment is Canadian will mean looking closer at a tag to see where the t-shirt was manufactured. At the grocery store, it might mean choosing the apples grown in the Okanagan over the raspberries grown in California. 

The push to buy Canadian is about trying to find some domestic replacements for the products and services you buy, but not beating yourself up if this isn’t possible—either because of your budget or the availability of what you need to purchase. 

Canada just can’t grow certain products in the winter. Or a comparable product might be available, but at a 20% markup. Maple syrup comes from Quebec, but lemons just don’t grow there. 

A brand might have been founded in Canada and is headquartered here, but the product itself might be manufactured or assembled in the US or elsewhere. 

Taking an honest look at how you shop and what decisions you make to support Canadians is the goal for most Canadian shoppers. Perfection is not. It could be as simple as swapping out a mass market pop made and bottled in the US for a craft soda made in Canmore.