As U.S. President-elect Donald Trump is set to be sworn in on Monday and bring in a tariff on Canadian exports, the Canadian government is preparing itself to fight back.
However, the Calgary Chamber of Commerce, whose members include many energy leaders, opposes all retaliatory measures, including export taxes and restrictions on Canadian oil and natural gas to the U.S.
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In a statement, president Deborah Yedlin said Trump’s tariffs are a real risk to Canada, threatening jobs, disrupting supply chains and making affordability challenges worse.
But if Canada reacts with similar tariffs, she says the situation could be much worse.
“While we recognize the importance of defending Canadian interests, the Chamber strongly opposes retaliatory measures, including export taxes or restrictions on Canadian oil and natural gas to the United States,” Yedlin wrote.
“Our members have made their position clear: no Canadian industry should be used as a bargaining chip.”
Yedlin said the energy industry accounts for 25 per cent of Canada’s total exports and makes up $150 billion in annual trade with the U.S.
Any sort of measures by the federal government to impose additional taxes on the U.S. would risk devaluing Canadian energy exports, discourage investment and cost jobs.
“Additionally, restricting energy exports would harm affordability and energy security while undermining the interconnected infrastructure and partnerships that define the Canada-U.S. energy relationship. Calgary businesses need solutions that provide certainty and stability, not actions that inflict further economic pain,” Yedlin said.
Instead of tariffs, she suggested measures that would promote “a strategic, united and collaborative approach.”
Those include steps to mitigate the impact of tariffs on Canadian businesses and workers, streamlining regulatory processes to boost investment, working with industries to build policies, prioritizing key economic sectors and diversifying Canada’s trade partners to reduce its dependence on the U.S.
“We call on federal and provincial policymakers to work in partnership with businesses to safeguard jobs, protect revenues and bolster our competitiveness and reliability as a trading partner. Reactionary measures that undermine our economic stability and international reputation are not the answer,” she said.
On Thursday, Alberta Premier Danielle Smith, who also opposes retaliatory tariffs, refused to sign on to the agreement Prime Minister Justin Trudeau made with other premiers, saying that Alberta has always been treated unfairly by Ottawa.
