Alberta business braces for looming U.S. tariffs, embraces potential opportunities because of them

While Alberta's trading future with the United States is uncertain given the imminent threat of punishing tariffs promised by incoming President Donald Trump, business leaders say there is reason for optimism the province could avoid extensive blowback given the importance of energy to Canada's neighbouring global superpower.

While Alberta's trading future with the United States is uncertain given the imminent threat of punishing tariffs promised by incoming President Donald Trump, business leaders say there is reason for optimism the province could avoid extensive blowback given the importance of energy to Canada's neighbouring global superpower.

Trump, who won the presidential race in November and started floating the idea of having Canada join the U.S. as the 51st state later that month, said Tuesday he would rely on “economic force" to cajole the country into joining his republic as he cast his country's trade deficit with its northern neighbour as a subsidy that would be coming to an end.

Scott Crockatt, a vice-president of the Business Council of Alberta, said businesses are preparing for "the very strong likelihood" of tariffs on industry coming in when Trump assumes power on Jan. 20.

He said some sectors of the economy were "looking more optimistic" before Trump on Tuesday further suggested the U.S. would strongarm Canada economically to force it to turn American with the federal government in flux following Prime Minister Justin Trudeau's resignation and prorogation of parliament on Monday.

"The energy sector was up big yesterday, and it's up again today, but right on the heels of some of that optimism for some new thinking and new direction, it is the second big concern, which is there's no more important economic file for the Government of Canada, for business in Canada right now than Canada-U.S. trade," Crockatt told CTV News Edmonton on Tuesday.

"In the near term, Mr. Trudeau's resignation has actually created more, not less, uncertainty about what the future of that's going to look like."

Prime Minister Justin Trudeau suspended parliament until March 24 and will step down after a Liberal leadership race, weakening his office as Trump comes into power. It has cast uncertainty around who will lead the Liberals and what will happen with a general election this year, likely this spring soon after the Liberals chose Trudeau's successor.