The Canada-U.S. trade relationship—long considered stable and mutually beneficial—is now facing a level of strain not seen in decades. While global trade tensions have ebbed and flowed over the years, the latest wave of U.S. tariffs is more than business as usual.
Though Canada has avoided some of the newest retaliatory tariffs aimed at other countries, several steep tariffs remain in place on key Canadian exports like steel, aluminum, energy, potash, and automotive manufacturing.
Let’s take a closer look at which Canadian cities are most likely to be hit by potential tariff effects and the overall impact it could have on consumers and businesses.
Which Cities Are Most at Risk?
Earlier this year, the Canadian Chamber of Commerce released a report ranking 41 Canadian cities most exposed to tariff risk, using trade data from Statistics Canada. The top three most vulnerable cities included:
- Saint John, New Brunswick – Home to Canada’s largest crude oil refinery, Saint John is directly tied to energy exports.
- Calgary, Alberta – With over 96% of its exports going to the United States (totalling approximately $119 billion), Calgary is especially reliant on cross-border trade in sectors like energy and agriculture.
- Windsor, Ontario – As a hub of automotive manufacturing, Windsor is deeply connected to U.S. automotive supply chains, which face 25% tariffs on exports.
Calgary’s high ranking on this list isn’t surprising, given that many of our crude oil and natural gas companies are based there. The city also has a strong beef processing industry—both sectors that could be significantly affected by U.S. tariffs.
While crude oil has been spared so far, other products such as aluminum, steel, and potash are facing stiff penalties, and there’s still uncertainty around whether the agricultural sector will be next on the list.
What About Alberta Specifically?
So, what does all of this mean for us here in Alberta? We’re presented with a two-sided challenge:
- Direct pressure on key industries, such as energy and agriculture.
- Broader impacts that could influence:
- Job stability
- Investment confidence
- Business growth and expansion plans
Companies operating with tight margins may need to make adjustments, whether that’s by revisiting pricing, staffing, or scaling plans to navigate the changing landscape. With global economic uncertainty already in the mix, tariffs add another layer of complexity for Alberta businesses working to stay competitive on the world stage.
The Consumer Cost: Higher Prices, Tighter Budgets
How does this affect you at the check-out line? Much of the talk surrounding the on-again, off-again, back-on-again tariffs is the threat of rising costs. The reality? Higher prices for fuel, groceries, vehicles, and technology are part of the conversation.
For households already managing tight budgets or facing debt, even the smallest price increase can feel like a ton of added pressure. While not every household will feel the effects in the same way, it’s another factor that can make financial stability harder to maintain, especially for those already working to stay on track.
The Good News: You’re Not Alone
Whether you’re a business facing uncertainty about what to do next or someone worried about your financial future, the important thing to remember is that you’re not alone, and help is available.
For individuals, consider:
- Tackling high-interest debt first.
- This helps reduce the amount of interest you’re paying and gets you closer to becoming debt-free.
- Exploring a Consumer Proposal.
- If debt has become overwhelming, a Licensed Insolvency Trustee can help you develop a legally binding repayment plan that fits your budget and stops collection calls.
For business owners, think about:
- Diversifying your market exposure.
- Reducing dependence on U.S. customers can help mitigate future risks.
- Reviewing your financial health.
- If debt or cash flow issues are becoming a problem, options like restructuring plans or a Division 1 Proposal can provide much-needed breathing room.
Faber is Here to Help
Tariffs may be unpredictable, but your financial path forward doesn’t have to be. Whether you’re a business owner grappling with rising costs or a household feeling stretched at the grocery store, taking action early can make all the difference.
Speaking with a Licensed Insolvency Trustee is a confidential, judgment-free first step. We’ll review your financial situation, explain your options, and help you find a solution that fits your needs. Contact us today, and you’ll speak directly with an LIT who will work with you to answer your questions.
