Political leaders and companies in Saint John, N.B. are bracing for the affect of looming U.S. tariffs on Canadian items, saying the town is essentially the most weak within the nation.
“Tariffs could be inflationary on each side of the border and this might create a squeeze on the family stage, which might be fairly difficult to navigate,” stated Fraser Partitions, board chair of the Saint John Chamber of Commerce.
On Feb. 1, U.S. President Donald Trump signed an executive order imposing tariffs on Canadian and Mexican items. A day earlier than the tariffs have been to enter impact, Prime Minister Justin Trudeau and Trump had a cellphone name, after which Trump paused the tariffs for 30 days.
In response to new analysis by the Canadian Chamber of Commerce, Saint John would be hit the hardest by U.S. tariffs.
Utilizing Statistics Canada commerce information, the group got here up with a “U.S. Tariff Publicity Index” to have a look at the potential affect of threatened American tariffs on 41 Canadian cities.
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The researchers stated Saint John is essentially the most weak. The realm is house to the Irving Oil refinery, the most important crude oil refinery in Canada. The refinery can course of over 320,000 barrels every day, with greater than 80 per cent of that oil exported south of the border.
In an announcement final week, the refinery stated it has had a “proud and powerful relationship with the US” since 1972.
“This tariff will end in worth will increase for our U.S. prospects and have impacts on vitality safety and the broader economic system,” the assertion learn.
“Given the significance of safeguarding the vitality provide chain, we urge all stakeholders inside authorities and trade to come back collectively and work towards a decision as quickly as potential.”
The Chamber of Commerce report additionally famous seafood and forestry merchandise are New Brunswick’s different prime exports to the U.S.
“In 2023, there was $15.5 billion (value of) items that was traded from New Brunswick to the U.S., and an excellent portion of that’s from Saint John,” stated Partitions.
Partitions fears a potential multi-billion greenback affect on the native economic system in Saint John, and says there’s nice potential for the Maritimes to work collectively to scale back reliance on the U.S. market.
It’s an thought shared by Saint John Coun. Brent Harris.
“We actually ought to be repatriating as a lot of our provide chains as we are able to anyway, and so what higher place than Saint John with a deep-water port,” he stated.
He provides that the town has a singular alternative to develop its cargo facilitates.
“The Saint John Airport could be very underutilized as a cargo choice. Tons of accessible area, a direct rail hyperlink that goes to it, so, there’s lots of aggressive benefits right here that we’ve actually not put within the funding and the hassle to discover.”
Moreover, Trump signed an executive order Monday to implement 25 per cent tariffs on all metal and aluminum imports into the US, starting March 12. It will stack on prime of the 25 per cent tariff on all Canadian items, according to the White House.
— with a file from The Canadian Press
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