U.S. President Donald Trump plans to impose 25 per cent tariffs on aluminum and steel in early March. Pavel Shlykov/Dreamstime.com

By Eli J. Ridder

BUSINESS

Over 30 regional companies will be impacted if U.S. tariffs activate, Medicine Hat advocate says

Feb 11, 2025 | 5:12 PM

There are well over two dozen regional manufacturers and exporters that will be directly impacted if U.S. President Donald Trump activates tariffs of varying degrees on Canadian imports, according to a key business advocate.

From chemicals to livestock, many businesses that produce some of the province’s crucial export products are based in or near Medicine Hat, including over 30 members of the Southeast Alberta Chamber of Commerce.

“So we know this has an impact in terms of cost for any goods going down to the U.S.,” the chamber’s executive director Lisa Dressler told CHAT News on Tuesday.

While any import levies are paid by the exporting company, the extra costs often end up getting passed down to the consumer and create a ripple effect.

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“What that means for companies over time is whoever they’re exporting…they’ll start to look at other options because of the impact on cost to their company and their customers,” Dressler said.

The focus for the chamber has been on tearing down levies that are closer to home.

“When we look at our interprovincial trade barriers, oftentimes it’s harder for companies to do business in Canada versus doing business globally,” Dressler said.

Internal trade barriers are equivalent to about a 21 per cent levy between Canada’s provinces and territories.

They are caused through a mix of more intentional protectionist laws and somewhat unintentional barriers created by regulations that evolved in separate ways in each jurisdiction.

While interprovincial trade represents about one-fifth of Canada’s gross domestic product, it’s estimated that removing all barriers has the potential to offer a four per cent GDP boost, according to a 2019 study written by economists.

“The province of Alberta is far ahead of a lot of other provinces, but there’s still work that needs to be done. And so we want to make it a lot easier for business to do business in Canada,” Dressler said.

Lisa Dressler says U.S. tariffs would impact several business in the Medicine Hat area. Eli J. Ridder/CHAT News

It’s also important for Canadian businesses to find other countries to trade with to diversify their exports, she explained.

Ottawa needs to secure free-trade agreements “so that we can get more movement of goods to a lot more places,” added Dressler.

Her comments came as Danielle Smith and Canada’s other premiers were in the U.S. capital as part of a united diplomatic effort to make the case that levies should not come into play.

Smith, who previously told CHAT News that she wants “Team Canada to be on Team Alberta”, has often taken a different approach from her counterparts and the federal government in addressing the tariff threats.

Dressler said Tuesday’s more collaborative approach is better.

“Strength in numbers is always more beneficial then a fragmented approach,” she said.

“The stronger that we can be together and have that Team Canada approach and know what we’re asking for — and particularly knowing what our strengths are — the better we can position ourselves to ensure that this is mitigated and minimized as much as possible.”