‘In this for the long haul’: How Albertans can work around Canadian counter-tariffs

Some Albertans are rallying in support of new counter-tariffs introduced by Ottawa in the wake of the escalating trade war with the U.S. Chelan Skulski reports.

A local business owner is stocked up and hoping to avoid raising prices while awaiting a resolution to the escalating trade war between Canada and the U.S.

Canadian counter-tariffs on U.S. goods came into effect on Tuesday. They include taxes on many everyday items like dairy, TVs, toilet paper and tinfoil.

The new taxes come after trade talks broke down last month; on Tuesday, Prime Minister Mark Carney said they would come “at a cost” but would pay off in the long run.

Teresa Spinelli, president of the Italian Centre Shop, said her company imports mainly from Europe but won’t escape unscathed.

“Some of my favourite cheese is actually from the U.S. So that’s going to go up by 25 per cent for sure,” she said. “The only other thing that I think is going to really affect us is with the packaging.”

Spinelli explained that packaging like bottles, jars and cans often comes from the U.S. and has the potential to raise prices even for locally grown or made goods.

“Even though there are no tariffs on the beans because they’re a Canadian product, the can the beans are in is going to go up for sure,” she added. “That gets passed on to us and we unfortunately have to pass that on to our customers.”

For now, though, Spinelli said she is stocked up enough to allow for a little time for trade relationships to recover.

“Our cheese from the U.S., we have lots in stock, so hopefully they figure this all out before we have to place another order,” she said.

“Even the packaging companies that we buy from … I’m sure they saw this coming and they stocked up a long time ago, knowing this was coming their way.

“I’m hoping anyway.”

Economist Moshe Lander, with Concordia University in Montreal, said playing the long game can also help Alberta consumers avoid extra costs associated with tariffs.

“Christmas is three months away. You know that the kids are going back to school. You know there are going to be birthdays and anniversaries and hockey seasons coming,” Lander said.

“If you know these things are coming, start making contingency plans.”

Canada’s counter-tariffs, Lander said, were designed to impact American producers more than Canadian consumers. Choosing Canadian made is a desired outcome, but that doesn’t mean it’s the only way to avoid added costs.

“It’s not like other countries have those tariffs on them. So you can buy from Asia or from Europe,” he added. “Look around, comparison shop, talk to your neighbours.”

If you aren’t too patriotic, Spinelli points out that U.S. goods could still sometimes be the better option for your family.

“We always have a low-end olive oil, a medium one and a high end one, so that everybody can choose what works for them,” she said. “I get that we shouldn’t sell any U.S. products, but we also know that people have to feed their families, and those usually are at a better price, even with the tariffs.”

On Friday, the Government of Alberta launched a new online portal for businesses to share how tariffs are impacting operations.

In a statement to CTV News Edmonton on Tuesday, Alberta Premier Danielle Smith said she has continued to urge caution against escalation regarding the trade dispute.

“Tariffs and counter-tariffs are harmful to both Americans and Canadians. They disrupt businesses, threaten jobs, drive up inflation, decrease productivity and strain relationships between allies,” Smith said.

“I strongly encourage all of Canada’s leaders to double down on diplomatic efforts by speaking directly with the American people, congressional leaders, governors, and other lawmakers, about the benefits of fair and free trade between Canada and the United States.”

The U.S. midterm general elections take place Nov. 3. Lander said trade relations could see some improvement if Democrats regain some control, but as it stands now, he’s not optimistic for a quick resolution.

“We’re now in this for the long haul. If the Americans want to escalate this, which I’m sure they’re going to, we’re going to have to escalate this because we’ve now chosen that as the optimal path,” he said.

“I think there’s just no way that you can back down at this point.”

With files from CTV News Edmonton’s Chelan Skulski and The Canadian Press