On Saturday, February 1, 2025, U.S. President Donald Trump signed an executive order enacting 25 per cent tariffs on most Canadian goods, and a 10 per cent tariff on Canadian energy. The history of free trade between the U.S. and Canada dates back to the 1988 Canada-U.S. Free Trade Agreement which laid the foundation for deeper economic integration, followed by an expansion of the agreement in 1994 under NAFTA and modernized in 2020 under the USMCA agreement.
The following statement may be attributed to Brad Parry, President and CEO, Calgary Economic Development:
“Calgary always has been and always will be the energy capital of Canada. Energy is the foundation of the Canada-U.S. trade relationship and a tariff on Canadian oil — while lighter than initially proposed — is a direct hit to both the Canadian and U.S. economies. These tariffs will drive up costs for American consumers and threaten investment and jobs in Calgary and across Alberta.
“These sweeping tariffs will disrupt supply chains, increase business costs and inject instability into our economy. Alberta’s manufacturing, agriculture and export-driven industries — already navigating economic headwinds — will face further uncertainty, making it harder for companies to compete and grow. Small businesses, which make up almost 95 per cent of Calgary’s business environment, would be particularly vulnerable.
“Calgary Economic Development will continue to work with industry, policymakers and trade partners to mitigate the impact of tariffs and strengthen investment in high-growth sectors. At the same time, we will double down on efforts to diversify our international markets while increasing interprovincial trade to strengthen our economic resilience against protectionist policies.”