Pages tagged "usa"
The Impact of US Tariffs: Hard Truths and Edmonton's Path Forward
So here we are. The 25% tariffs are coming and with them, some hard truths about our economic reality. As your City Councillor, I've always believed in straight talk about challenges facing our city. This is one of those moments.
What This Means for Edmonton
Everything will get more expensive. Everything. That's the simple truth. The economies of our two countries are so completely intertwined, Minister LeBlanc described it as “trying to unscramble an omelette." There is nothing that will not be affected.
The City of Edmonton is not immune. The immediate impact will be felt across our business community. The Edmonton Chamber of Commerce reports that 15-20% of their 2,000 member businesses export directly to the US, and nearly all local businesses will feel the ripple effects through supply chains and increased costs. We're already hearing concerning reports of some manufacturers considering relocating operations south of the border to avoid these tariffs. When the Chamber warns of a potential 60-cent Canadian dollar, we need to pay attention.
For the City of Edmonton, this presents specific challenges:
- Increased costs for construction materials and equipment
- Higher prices for vehicle parts and maintenance
- Rising fuel costs affecting transit and city operations
- Potential impacts on major infrastructure projects
But here's what this cannot mean - it cannot mean automatically passing these costs on to taxpayers. City Administration needs to make every effort to keep projects and operational costs on budget. The last thing Edmonton households need, as they face higher prices on everyday goods, is an additional tax burden.
This may mean some difficult choices ahead. We might need to adjust project timelines, explore alternative materials, or reallocate resources. We'll face tough decisions about what proceeds and what gets delayed. But these decisions must be made thoughtfully, with clear communication to residents and businesses.
A Deeper Reality Check
Here are a couple of broad truths we need to consider.
The more cynical version of the golden rule is that “Whoever has the gold makes the rules.” We have been living for a long time under a set of rules reinforced by American might - economic and military - that we assumed were universal truths and shared values. We might be finding out those truths weren't so universal after all.
There's a harder truth too: these tariffs will result in considerable additional revenue for the American government, while their dollar gains even more strength on the world market. It's a double uptick for the USA, a one-two punch for Canada. And history tells us that once governments find new revenue sources, they rarely let them go. When was the last time you saw a new government remove a revenue stream the previous one put in place?
While it's not my place as a City Councillor to wade into international trade strategy, I do know this: the relationship between our two countries is changed forever. It might moderate over time, but it won't ever be the same. Perhaps this is the wake-up call Canada needs to strengthen inter-provincial trade and build new partnerships beyond North America.
But here's another truth - Edmonton has faced existential threats before. We've always made it through by pulling together, by supporting each other, by remembering that we are this remarkable community of communities that is profoundly different from most any other place.
What Do We Do Now?
While we can't control decisions made in Washington, we can control how we respond here at home. Edmonton has always been a city of innovators and problem-solvers - and that's exactly what we need to be now. We need to focus on:
- Working with City Administration to find innovative ways to keep projects on budget
- Prioritizing essential services while seeking cost-effective alternatives
- Supporting local businesses in navigating these challenges
- Looking for opportunities to strengthen local supply chains
But maybe it's also time to think differently about "local." When we talk about shopping local, let's remember it's not just about where a business's head office is located. The local Subway franchise may have been purchased from an American parent company, but the owner might be your neighbour, the employees might be people from your neighbourhood or the kid next door, and the ingredients in those sandwiches might be sourced from Alberta producers.
Maybe it's time to explore more of what our backyard has to offer. When was the last time you visited the Old Strathcona farmers' market? Or wandered the shops on 124th Street? The people running these businesses are our neighbours, and they could use our support now more than ever.
Maybe it's time to explore Montreal or Halifax or Whitehorse this summer. When was the last time you drove to Tofino? Or closer to home, the people in Jasper would surely love a little support.
Moving Forward
These are uncertain times. The solutions to all of this will take time and patience to present themselves. The need for clear communication and collaboration between all orders of government has never been higher. But I remain optimistic about Edmonton's future because I've seen how we respond to challenges - not by turning inward, but by pulling together.
We will get through this together, as we always have, by supporting our local businesses, making prudent decisions about public resources, and focusing on practical, made-in-Edmonton solutions.