Southern Albertans still figuring out the impact of latest tariff increase

The U.S. is ramping up tariffs on Canadian goods to 35 per cent after a trade deal deadline passed, leaving many wondering what the impact will be.

Non-CUSMA-compliant goods now face a 35 per cent tariff to enter the United States.

Estimates say anywhere from 80 to 90 per cent of goods could be covered.

Small- or medium-sized businesses may have a harder time becoming CUSMA-compliant.

But the Lethbridge Chamber of Commerce is able to certify goods to help them meet requirements.

In a statement, chamber CEO Cyndi Crane said, “We are committed to helping our businesses stay resilient and competitive in this evolving trade landscape.”

There’s concern over what the increased tariffs could mean for the agriculture sector.

With southern Alberta’s harvest starting in a couple weeks, some worry about this trade wrinkle.

“It’s not a good time for us because harvest is going to start in the next couple of weeks for us, and that’s going to continue on for the next month or two,” said Lynn Jacobson, president of the Alberta Federation of Agriculture.

“It’s just one of those little things we have no control over. It’s something like the weather.”

Farmers who export to the United States will have to check their contracts.

The details in these deals could impact tariffs on producers and importers.

“If you own the product going across the border and they pick it up and take ownership after the border, we’re stuck with the tariff. If they buy it and that’s their product going to the states, then they’re stuck with the tariff,” said Jacobson.

Premier Danielle Smith says she’s happy CUSMA goods are still protected but frustrated by the increased tariffs.

In a statement, she said, “These tariffs hurt both Canadian and American businesses and workers, and they weaken one of the most important trade and security alliances in the world.”

The United States gave Mexico the same deadline for a new deal, then a 90-day extension.

Negotiations between Canada and the United States are ongoing.