St. Albert residents should shop local in the face of threatened American tariffs, say local business leaders.
Canada and the U.S. are in the midst of a trade dispute, with both threatening to levy steep tariffs on goods from each other by early March. The tariffs were originally supposed to kick in on Feb. 4, but the two governments agreed to delay them for 30 days.
While the U.S. has threatened to put a 25 per cent tariff on all Canadian goods (10 per cent for energy), Canada has proposed 25 per cent tariffs on some 1,256 categories of American products, including wood, beer, soap, coffee, oranges, chocolate, peanut butter, chain saws, muzzle-loading firearms, and ultrasonic vaporizers.
It’s very hard to say how these tariffs would affect the price of food, as it wouldn’t be just a simple 25 per cent hike, said Kris Larsen, vice-president of consumer products for North Central Co-Op. Many products hop across the border multiple times before they reach the stores and would incur the tariffs each time. Producers might absorb some or all of these tariffs to avoid losing market share or raise prices to compensate. If prices do go up, lower demand could knock them back down.
These tariffs could make some food items more expensive if implemented, which would be bad news for families on a tight budget, said Suzan Krecsy, executive director of the St. Albert Food Bank. They could also result in job losses, increased demand for donated food, and shortages because of supply chain disruptions.
“The unpredictability and stress right now is pretty high,” she said.
Don’t panic, buy local
A tariff war with the U.S. could drive up prices and have widespread effects on supply chains and the Canadian economy, St. Albert and District Chamber of Commerce chair Angie Hampshire said in an email Feb. 4.
Average Canadians don’t have any influence over these tariff talks, Hampshire said in an interview, but "what we can decide and determine is how can we support each other.”
Hampshire encouraged St. Albert residents to weather any potential tariff battle by buying Canadian products and supporting Canadian businesses. The St. Albert Chamber has created a website listing American goods that would be subject to tariffs and lists of Canadian producers.
Larsen said North Central Co-Op already stocks many Albertan alternatives to American foods subject to Canada’s proposed tariffs, including honey, beer, and strawberries. Some items, such as oranges, will be tougher to replace, as they aren’t always in season or are more expensive when not from the U.S. He predicted many customers will boycott American beers and wines.
Amaranth Whole Foods grocery manager Marianne Young said she is putting flags on all Canadian products on her shelves so customers can easily find them. (North Central Co-Op has taken similar steps.) About three-quarters of her stock is locally grown and made.
“We’re always promoting [local] because it helps our country, our province, and our local businesses,” she said.
“We’ll continue to buy and source as much local as possible.”
Visit www.stalbertchamber.com/tariff-information for information on the tariff dispute.
