Be smart, be prepared: Local industry readies for tariff war

By Collin Gallant on March 5, 2025.

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Local business officials are stressing knowledge and sound planning as the best ways to weather on-again, off-again tariff threats from the United States, which were imposed Tuesday morning, but may be lowered Wednesday, according to media reports from Washington.

Chamber president Steven Pudwell told reporters on Monday night that the Southeast Alberta Chamber of Commerce is stressing to members that it has resources to help navigate challenges posed by a 25 per cent blanket charge imposed by President Donald Trump, as well as help define what effect limited countervailing tariffs from Ottawa may pose.

He is promoting the business group’s, website which lists resources, and the Chamber is also hosting a webinar for members on March 12.

Medicine Hat was also centre to some emerging North American trade news on Tuesday as Premier Danielle Smith made a number of scheduled appearances in Medicine Hat on an itinerary that also shows several cabinet meetings today and tomorrow.

“We’ve done everything we can, the federal government and sub-national governments, to avoid this, but to see this escalation from the U.S. president is so disappointing,” she told U.S. business broadcast network CNBC during a morning interview.

“I don’t know why the president is acting this way (under the Canada-Mexico-U.S. trade agreement), it’s not legal.”

She was expected to touch on the issue at a town hall meeting at Medicine Hat College on Tuesday night, while another announcement and press availability is scheduled near Medicine Hat on Wednesday.

All Canada’s premiers backed retaliatory measures from Ottawa to the move by the U.S. president that was promised during his election campaign, then ramped up with moving deadlines in January.

Since then industrial, agricultural and exporter trade organizations have stressed the potentially harmful effects a trade dispute could have on industry and consumers.

Ottawa announced that it would issue retaliatory 25-per-cent tariffs on specific U.S. produced goods sold into Canada. Those, valued at $30 billion worth of merchandise, are listed in a searchable database on the Government of Canada website.

A federal remission application process could see some measures reconsidered if inputs or products cannot be sourced domestically, or significant exceptional circumstances.

The U.S. tariffs level a lesser 10 per cent additional charge on energy, petroleum or critical minerals exported south, but would still hurt the sector, according to the trade association for Canada’s oil patch exploration and drilling companies.

It called on Ottawa to specifically exempt machinery or supplies, like piping or frac sand, from countervailing charges.

“The unintended consequences of retaliatory tariffs could end up destabilizing Canada’s energy sector more than the U.S. tariffs,” stated Enserva president Gurpreet Lail.

As an example, he stated Canada imports six million tonnes of frac sand annually from the U.S. without a domestic alternative. A counter tariff would add $240 million in additional costs across the sector.

“To lessen the detrimental impact tariffs and counter tariffs will have on Canadians, Ottawa needs to strengthen its own hand.”

The Chemistry Association of Canada is a trade association that represents large manufacturers, including local companies like Methanex, Evonik, and has CPKC railways as a member.

Its president Greg Moffatt said the economies of both countries rely on the free flow of goods across the border.

“Tariffs are taxes and costs will rise, with consumers and businesses alike shouldering the weight of these tariffs at a time when cost-of-living is already high in both countries,” said Moffatt. “While a tariff and policy response from Canada is warranted, we must not lose sight of the pressing need to future-proof our economy.”

He outlined his belief for the need for taxation and regulatory reform, trade-focused infrastructure investment, labour stability and diversification of markets.

“Increasing our economic competitiveness should be the guiding principle for all policy actions in the weeks and months ahead. We need all stakeholders in Canada to recognize and address the gravity of the changing economic landscape.”

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