Federal support needed for small business as Canada-US trade deal collapses, Calgary Chamber says
After trade talks ended Friday with the U.S. imposing 50% tariffs on $28 billion in Canadian goods, Calgary's business leaders urge Ottawa to prioritize relief for SMEs.
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The Calgary Chamber of Commerce is calling on the federal government to prioritize support for small and medium-sized businesses in the wake of collapsed Canada-US trade negotiations that triggered steep new tariffs Friday.
After months of talks, the U.S. imposed a 50 percent tariff on roughly $28 billion worth of Canadian goods. The tariff covers motor vehicles, alcoholic beverages, dairy, wine, cement, plywood, furniture, clothing, seeds, fishing rods, hockey sticks, swimming pools, and wigs, among hundreds of other products. Prime Minister Mark Carney announced Friday evening that Canada was suspending negotiations after last-minute changes to U.S. terms proved "unfair, uneconomic, and called into question the reliability of any deal."
Calgary Chamber president and CEO Deborah Yedlin said Saturday that while the chamber is concerned about the follow-on effects, "no deal is better than a bad deal." She acknowledged that the new U.S. tariffs and Canada's retaliatory ones will impact nearly 100,000 workers across Canada, with additional Canadian products now exposed to added costs.
"In light of this, we encourage the federal government to prioritize small and medium-sized enterprises in particular, including through short-term relief programs for businesses and workers such as increased support for the Regional Tariff Response Initiative," Yedlin said. She called on Ottawa to closely consult provinces and businesses over the next two weeks to minimize unintended consequences of retaliatory tariffs.
Alberta Premier Danielle Smith posted to social media Friday evening that she was "deeply disappointed" the deal fell through. "Alberta has always advocated for a tariff-free relationship, and will continue to do so. No one benefits from a trade war," she wrote, noting that tariffs hurt businesses, workers and families on both sides of the border.
The escalation marks the continuation of a trade dispute that has been ongoing for nearly two years. Carney said throughout negotiations the government worked toward securing fair access to the U.S. market and greater certainty for Canadian businesses and workers.
How much funding does the Regional Tariff Response Initiative currently have, and which sectors are most heavily represented?
Which Calgary-based businesses are most exposed to the tariffed product categories?
When will Canada's retaliatory tariffs take effect, and what products will they cover?
We'll update this story as answers emerge.
The facts
What tariff did the U.S. impose on Canadian goods?
The U.S. imposed a 50 percent tariff on roughly $28 billion worth of Canadian goods, covering motor vehicles, alcoholic beverages, dairy, wine, cement, plywood, furniture, clothing, seeds, fishing rods, hockey sticks, swimming pools, and wigs, among hundreds of other products.
How many Canadian workers will be affected by the tariffs?
Nearly 100,000 workers across Canada will be impacted by the new U.S. tariffs and Canada's retaliatory tariffs.
What did the Calgary Chamber of Commerce ask the federal government to do?
The Calgary Chamber of Commerce urged the federal government to prioritize support for small and medium-sized enterprises, including short-term relief programs for businesses and workers such as increased support for the Regional Tariff Response Initiative.
