Lethbridge 10th most vulnerable city in Canada to U.S. Tariffs: study
By Al Beeber - Lethbridge Herald on February 14, 2025.
LETHBRIDGE HERALDabeeber@lethbridgeherald.com
The Lethbridge economy potentially faces a hard hit if 25 per cent tariffs on Canada planned by American president Donald Trump are implemented.
Right now, Canadians are only facing those tariffs on aluminum and steel products but Economic Development Lethbridge chief executive officer Trevor Lewington says businesses need to be prepared for a greater impact.
A study by the Canadian Chamber of Commerce’s Business Data Lab suggests Lethbridge is the 10th most vulnerable city in Canada to U.S. Tariffs.
Annual exports from Lethbridge Census Metropolitan Area have a value of more than $2.2 billion with 91.7 per cent of those going south to the U.S. Those exports represent 19.4 per cent of the city’s annual gross domestic product of $7.1 billion .
Lewington, in an interview Thursday, said 70 per cent of those exports stateside are finished food or manufactured goods with raw commodities such as loads of grain only accounting for 30 per cent of the total.
“They are our biggest customer by a longshot,” said Lewington of the U.S., noting that the economies of Canada and the U.S. Are closely integrated.
In 2024, the number of people in the Lethbridge CMA employed in manufacturing was 8,400 – 11.5 per cent of the total workforce. Those numbers were up from 2023 when 7,500 people – 11 per cent – worked in manufacturing, according to data from the Lethbridge Manufacturing Society provided by Lewington.
In 2023, the value of exports from the Lethbridge CMA was slightly more than $1.5 billion or 68 per cent of total exports.
The most vulnerable cities in the country are Saint John, New Brunswick – home to the Irving Oil refinery which processes 320,000 barrels of crude oil daily, of which more than 80 per cent heads to the U.S. Seafood and forestry products also go south from that city.
Calgary is the second most vulnerable city due to its exports of crude oil and natural gas to the American Midwest. Beef is also a major export from Calgary.
Calgary and Lethbridge are the only Alberta cities in the Top 10. Red Deer ranks 21st.
“Even with a 30-day pause, President Trump’s executive order to impose tariffs on Canadian exports to the United States marks a major protectionist shift in U.S. trade policy. A 25 per cent tariff on all Canadian non-energy exports and a 10 per cent tariff on Canadian energy exports to the U.S. (alongside tariffs on Mexico and China) will cause substantial economic disruptions for the global economy,” wrote Stephen Tapp of the Canadian Chamber.
Lewington said part of what the business community is struggling with is “the uncertainty of not knowing if or when tariffs will be imposed, what may or may not be included and what the level of tariff will be.
“We’re heavily dependent on that market,” Lewington said of the U.S.
“If there are tariffs, if the costs of our products going into that market increases, it affects a lot of manufacturers and a lot of producers which is the concern.”
Lewington says the U.S. Is an important market and while it’s important to shop and buy local, relationships with the U.S. Have to be managed.
“My thinking is presidents come and go, prime ministers come and go but hopefully – our partnership’s more than 150 years old country to country – we’ve got to think in the long-term as well,” added Lewington.
“It’s prudent for businesses to prepare” for tariffs, he added.
“I don’t think anybody should just wait. I think they need to be pro-active, they need to be talking to their customers or their suppliers depending on their supply chain works. They need to be looking at other markets and understanding what their business can withstand because something is coming and it will have an impact. So businesses need to prepare accordingly,” added Lewington.
21-20
Lefties falling out of trees like the Lizards in Florida. Suddenly the left decides to be less woke? Pipelines perhaps? Just maybe now the BS that our 1.4% total contribution to GHGs didn’t cause the BC and Jasper fires?
Too funny!