Calgary Chamber calls on federal government to de-escalate and avoid trade war

February 1, 2025, Calgary, AB – The Calgary Chamber and our members are deeply concerned by the tariffs announced today and the severe consequences they will have on businesses and workers across the country.

“We have been clear: tariffs are bad economic policy — whether imposed by the U.S. or as retaliation — with the consequences borne by Canadians, Americans and businesses on both sides of the border," says Deborah Yedlin, President and CEO of the Calgary Chamber of Commerce. “We strongly encourage the federal government to focus on diplomacy and de-escalation and avoid further blows to our economy through retaliation.”

Retaliation should be seen as a last resort option, particularly given Americans will feel the impact of President Trump’s tariffs on a daily basis when they buy groceries and fill up their cars: Americans are likely to see up to a 30c/gallon price increase at the gas pumps, many of the eight million jobs in the U.S. tied to trade with Canada may be compromised, and their industries, many of which rely on Canadian inputs, will be hamstrung.

The economic impact will ripple through key industries on both sides of the border — from manufacturing and agriculture to energy and technology — undermining the competitiveness of Canadian businesses and weakening our position in the global market. And with 42% of exports to the U.S. coming from small businesses, we’re concerned about the impact to our SMEs, which account for 98% of Canada’s businesses.

In the face of this challenge, we call upon Canadian policymakers to act decisively and strategically. We believe three critical areas demand immediate attention:

The first is to build relationships. We must strengthen engagement with U.S. counterparts to de-escalate tensions and preserve our vital trade relationship. Diplomacy and collaboration must be prioritized to avoid punitive measures that harm both nations. A breakdown in this relationship risks long-term damage to our shared economic prosperity. Given the importance of the U.S. market to the Canadian economy, what we don’t want is for this to go on too long so that substitutes to Canadians goods are found by U.S. companies and consumers.

The second is to strengthen Canadian competitiveness. We must address internal barriers, including interprovincial trade restrictions — including supply management — to enhance our domestic market efficiency. Simultaneously, we must remove punitive measures that undermine our industries and work to level the playing field globally. These include policies such as the emissions cap, amendments to the Competition Act and others. Without action, tariffs will erode our ability to compete internationally, putting Canadian jobs and businesses at risk.

The third is to build for the future. This means we need to secure market access, advance critical infrastructure such as pipelines and align defence spending with our commitments to NATO. These steps will ensure Canada remains a resilient and forward-looking economy. Failure to act now will leave us vulnerable to future economic shocks and limit our ability to capitalize on emerging opportunities.

“We acknowledge the efforts already underway by policymakers and businesses on these fronts,” says Yedlin. “But we hope that this is seen and heard as a wake-up call. We’re at an inflection point: now is the time for a unified Team Canada approach — businesses and governments must lean into collaboration to navigate this challenge and secure our shared prosperity, and consumers can support by buying local and buying Canadian.”

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About the Calgary Chamber of Commerce 

The Calgary Chamber of Commerce exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.

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