With the U.S. president recently confirming new tariffs on Canadian goods would be going ahead as planned, provincial and federal governments are bracing for significant negative economic impacts.
Whether provincial and federal efforts to prevent the tariffs and/or impose counter tariffs will be successful in protecting Alberta families and businesses remains to be seen.
No question, the federal-provincial efforts are prudent in the face of a highly unpredictable new U.S. administration. At the same time, the possible impacts at the local level must also be gauged and considered.
Alberta Municipalities (ABmunis) has been examining the possible impact of tariffs in the hope of preparing its 200-plus member communities for what may come.
The association says impacts municipalities could face include reduced funding from the government of Alberta, reduced municipal revenues, reduced investment, stunted property tax growth, higher costs on goods and services, supply chain disruptions and delays, and increased demand for social supports.
The association also says its analysis of the tariff threat indicates Alberta’s economic growth could be 0.5 per cent over the next year (a negative two per cent change), 36,000 fewer jobs could be created with a projected average unemployment of 7.6 per cent, and oil and gas capital spending could decrease by at least four per cent.
“Our overall risk and impact assessment is that tariffs will further constrain municipal administrations, reduce their budgets, and require them to do more with less,” the association said.
The impact of tariffs on the region’s vital agriculture industry could also prove to be widespread and far-reaching. Thankfully industry partners, including the Alberta Beef Producers, have also been working hard to identify the possible impacts and what might be done to meet them.
The old adage that ‘forewarned is forearmed’ certainly seem to be applicable in the current tariff threat situation. And, as such, key stakeholder groups and organizations working proactively to identify and meet the threat should be applauded by the community-at-large.
Dan Singleton is an editor with the Albertan.
