Chamber President Reports: Tariffs, Turbulence and Tonic
If our experience with Covid-19 taught us one thing, it is that people you thought you knew can suddenly turn weird. When they do, you need to adjust your relationship with them. You need to change the spot where you hide the house key, fix the hole in the fence that neither of you worried about when you were on better terms, and spend more time with the other neighbours. We can hope that the weirdness is temporary and things will improve, but hope is not a plan.
Tariffs are a taxation policy. Traditional economic theory holds that nations should produce those goods they can easily produce, and buy from others those that they cannot. We have cheap hydro so can smelt aluminum for less than aluminum producers in the US can, but we need to import oranges and grapefruits since it is very expensive to grow them here. Tariffs are used to eliminate the advantage that nature, history, or government subsidies have given a producer nation, so they effectively subsidize the domestic production of those goods. Consumers in the country which imposes the tariffs pay the price because domestic producers will charge more when unconstrained by the price of imports.
Canada is facing a US Government policy deliberately designed to damage our economy. The US Government policy flies in the face of free trade principles and negotiated treaties like CUSMA, which was signed by Donald Trump when he was last in office. All trade is based on trust that the other party will fulfill its part of the bargain. By violating CUSMA under the guise of a National Security threat, the US administration has signalled that it will not abide by its own agreements.
As a Chamber, we advocate for fair and open trade that supports the economic vitality of Bragg Creek, Alberta and Canada. The Chamber urges all levels of government to pursue balanced trade policies that minimize undue burdens on businesses while protecting Canadian industry.
The BCACC encourages its membership to support local businesses and choose Canadian products whenever possible. Your spending decisions are your own, but I’d encourage people to consider using this period of “unneighbourly tension” to explore within Canada or visit one of the many fascinating countries that lie a bit beyond the United States.
The federal government has introduced new measures to help businesses navigate the impact of recently imposed U.S. tariffs.
Key support programs include:
- Trade Impact Program – $5B through Export Development Canada for affected businesses.
- BDC Support – $500M in low-interest loans for impacted businesses and supply chains.
- Farm Credit Canada Financing – $1B in new lending for the agriculture and food sector.
- Investment Protection – Strengthened foreign takeover safeguards.
- EI Work-Sharing Flexibility – Temporary adjustments to reduce layoffs.
Lastly, I would like to introduce a new program being offered by the Bragg Creek and Area Chamber of Commerce. We would like to beautify our community and show our patriotism with a conspicuous display of Canadian flags. For the past few years our national flag has been over-used by individuals wishing to communicate their opposition to vaccines or carbon taxes, but it represents all of us, in all our complexity. The Chamber of Commerce has purchased 50 Canadian flags and staffs that it is offering to any member business wishing to fly the flag proudlyin front of their business. First come, first served. I hope to see our small community decorated in a lot of beautiful red and white in the coming months.
In a challenge like this lies an opportunity. We hope that our federal and provincial governments seize the occasion to undertake policies that strengthen our country and its place in the world. It isa shame that it took an external threat to make people realize that we have something here that is important, beautiful, and worth defending… but here we are.
Neil MacLaine
President of the Bragg Creek and Area Chamber of Commerce
W: visitbraggcreek.com/bragg-creek-chamber
E: Office@braggcreekchamber.com
