Albertans Rush to Beat Trump’s Tariffs on Imports

On Wednesday, various businesses in Alberta were in a race against time to send shipments to American clients before President Donald Trump’s latest tariffs came into effect. These tariffs are particularly steep and apply to aluminum and steel imports from Canada, starting at 10:01 p.m. Calgary time (12:01 a.m. eastern time).

Many companies, especially those in the steel and metal industries, are feeling the pressure to complete their deliveries. Chad Spicer, owner of All Metal Manufacturing in Calgary, expressed urgent concern, stating, “We are rushing stuff out the door right now to get across the border, and hopefully they make it before midnight.” A delay could lead to significant business losses.

Spicer further explained the challenges businesses face: "It makes it difficult for companies to ship because the people receiving it don’t want to pay the extra money, so sometimes they turn it around. They get to the border and they stop them there—and then they turn around and we just sit on it." This scenario has many manufacturers in a state of frenzy.

Additionally, Canada's craft brewing sector is preparing for the increased costs that will arise due to these new tariffs, with the price of aluminum cans expected to rise. Brandon Hart, owner of The Establishment Brewing Company in Calgary, noted that the cost of a basic product like a four-pack of tall cans could significantly impact their business, saying, "A four-pack of tall boys means craft beer to most people, so it’s hard to break away from that."

Import Challenges

Canada is one of the major global producers of aluminum. However, most aluminum used for cans is shipped to the U.S. where it's processed into thin sheets for can production before being sent back to Canada. This could mean that cans may encounter tariffs on both sides of the border.

In anticipation of the upcoming tariffs, The Establishment has stockpiled around 300,000 cans, packing their warehouse full, enough to sustain production for several months. Hart commented, “We kinda got what we could, but our space is limited so it will give us cans for three to four or five months of production, depending on how things go and what brands sell. But yeah, it’s not going to last forever.”

To further mitigate risks, the brewery is also bringing in hops from various suppliers, including Canada and overseas, in hopes of maintaining production consistency. Hart stated, “We are also bringing all of our hops in for the year, so that we can have a little bit of predictability over the short term.” However, he admits that the long-term outlook remains uncertain.

Reality of U.S. Tariffs

The Trump administration argues that these tariffs are necessary to protect American steel and aluminum industries from foreign competition. They claim it will help bolster domestic production and national security. Nonetheless, Spicer remains skeptical, believing the U.S. cannot quickly ramp up production to compete with Canadian companies that offer affordable, high-quality products.

He explains, “I don’t think the cost for them to ramp up to compete with some of the Canadian companies is affordable to them.” As companies in Alberta continue to adapt to these changing circumstances, the full impact of the tariffs remains to be seen.

Tariffs, Business, Alberta