With the teetering trade war between Canada and the U.S., industry leaders in the oil and gas industry in Alberta are already bracing for the blow of tariffs.
On Thursday, U.S. President Donald Trump said the 25 per cent tariff on Canadian goods would be put on hold until April 2 on goods which fall under the North American Trade Pact.
Canadian energy is not included in that trade agreement, according to U.S. media reports, which means the 10 per cent tariff on energy introduced on Tuesday is still in effect.
Oil and gas is the number one export from Canada to the U.S., with Alberta shipping four million barrels of oil every day.
Rural Municipalities of Alberta president Kara Westerlund says the economic instability is already having an impact, with fears it could get worse.
“It will equate to job losses in the end and a slowdown in businesses within the community and the loss in revenue, that’s the biggest concern,” Westerlund said.
Projected job losses
The province has already forecasted the impact tariffs could have on jobs, with Budget 2025 predicting unemployment will hit 7.4 per cent this year. In the worst case scenario, there would be 15,000 jobs lost this year.
Cochrane mayor Jeff Genung says “this is a time of chaos” and municipalities should have a strategic and intentional approach on how to handle the uncertainty.
“I wake up every morning and read the news and we have this feeling of helplessness,” Genung said.
“We need to drop parties, we need to drop divisiveness, this is a time that Canadians, Albertans can rise together.”
Other local leaders are looking to the province to help industries struggling.
“(We want to) get some opportunity to spend some time with the ministers and possibly the premier on what that looks like. How are we going to help Albertans? How are we going to help Canadians?” said Alberta Municipalities presidents Tyler Gandam.
So far, the province hasn’t committed to help the sectors hit the hardest.
“Ottawa has the means to be able to support the industry whether it’s through an enhanced employment insurance program, which they’ve already committed to do,” Smith said on Wednesday.
Smith says Ottawa’s counter tariffs could generate upwards of $40 billion, money she thinks could go to workers.
