Relief and uncertainty both mark Alberta industry reaction to U.S. tariff announcement

The long-awaited rollout of the new U.S. tariff policy, an occasion President Donald Trump marked with the moniker "Liberation Day," finally hit on Wednesday.

After bracing for the worst, some industry leaders are feeling relieved — and others, still uncertain.

Trump said the U.S. would apply a 10 per cent minimum baseline tariff on all goods coming into the U.S. from a long list of countries, with rates rising much higher for some nations. But that list did not include Canada because of previously announced tariffs that will continue to apply.

That means tariffs placed on Canadian steel and aluminum remain, while a levy on Canadian automobiles went into effect as of midnight on Wednesday. As well, tariffs on goods that don't comply with the Canada-United States-Mexico Agreement (CUSMA), which was negotiated in 2018, are still in place.

Adam Legge, president of the Business Council of Alberta, noted that Canada seemed to dodge the worst-case scenario that some feared, at least for now.

"For now, we're actually optimistic that we are not in the same scenario we thought we were January 20, and then February 2 and then March 4," Legge said, referring to previous U.S. tariff deadlines that had loomed over Canada.

Some industries, like the energy sector, are already largely CUSMA-compliant, Legge said. And tariff threats have encouraged more businesses to fill out the necessary paperwork to become compliant with the free trade agreement in recent months, he added.

Looking ahead, Legge stressed he hopes the Canadian federal government pauses to plot the best path forward on this issue, noting that some businesses are concerned retaliatory tariffs could be even more damaging than levies imposed by the U.S.

Instead, he advised letting self-inflicted wounds from U.S. tariffs persuade the country about how damaging the policy is — and strengthen Canada's own economy in the meantime.

"The relationship is strained and challenged, we're going to have to renegotiate [CUSMA], but the better and more important long-term strategy for Canada is, let's get our economic agenda together," Legge said. 

"Let's not breathe a sigh of relief and say we dodged a bullet. Let's continue to move forward for Canada for the best interest of the things we should have been doing for the past 10 years anyway."

Canada's cattle industry was one sector heavily at risk due to tariffs, because of how integrated it is with the U.S. as products often require multiple trips back and forth over the border before beef reaches store shelves.

Dennis Laycraft, executive vice president of the Canadian Cattle Association, said he's relieved that the industry is largely already CUSMA-compliant. 

Now, the best thing for the industry is to move past the uncertainty that tariff threats have created, and return to a more normal business relationship with their partners around North America.