The Manitoba Chambers of Commerce is deeply concerned about U.S. President-elect Donald Trump’s recent statements threatening a 25 per cent tariff on products imported from Canada. Such a measure would have widespread consequences, not only for Manitoba businesses but also for the interconnected economies of Canada and the United States.
Manitoba’s economy thrives on trade, and the United States is our largest trading partner. In 2023, Manitoba exported $15.6 billion in goods to the United States, comprising 72% of the province’s total exports. A punitive tariff of this magnitude would disrupt supply chains, inflate costs for businesses and consumers, and threaten jobs on both sides of the border.
According to the Canadian Chamber of Commerce, a 10 per cent tariff would cost the Canadian economy about $30 billion. Should the president-elect carry out the proposed 25 per cent tariffs, the economic impact would be exponentially more severe.
Whatever the amount is, it would have a considerable impact on Canadian producers, as the costs associated with any tariff would not be borne by American consumers but instead by Canadian producers.
Mutually dependent
The longstanding trade relationship between Canada and the United States, solidified through agreements such as the United States-Mexico-Canada agreement, has fostered mutual growth and stability. Introducing barriers like these tariffs would undermine decades of cooperation and the shared prosperity of our integrated economies.
There are close to 40 states that consider Canada — and in some cases Manitoba — to be their number one trading partner. Trump’s proposal will squeeze businesses and put jobs on the line.
“This is a huge concern from both a business perspective and from a U.S.-Canada relations perspective,” says Chuck Davidson, President and CEO of the Manitoba Chambers of Commerce. “I think there needs to be a better understanding from Americans and Canadians alike of the importance of our mutually dependent relationship.”
A pivotal moment
The need for the Government of Manitoba to strengthen economic relations with the United States and to capitalize on the opportunity to engage directly with U.S. policymakers has never been greater.
Manitoba needs dedicated representation in Washington to provide our province with an influential voice in U.S. trade negotiations and to help advocate for issues critical to Manitoba’s economy, such as agriculture, manufacturing, and cross-border logistics. This is a pivotal moment for U.S.-Canada trade relations. We can’t afford to sit on our hands.
“With the potential for significant economic disruption, we urge the Prime Minister and Canada’s premiers to prioritize this issue at the highest levels,” says Davidson. “Fostering a stable and equitable trade relationship with the United States is critical to ensuring economic resilience across Canada.”
