Southern Alberta braces for tariffs following breakdown in trade talks

Posted on September 11, 2026 by Sunny South News

By Patrick Wachter
Southern Alberta Newspapers

Alberta remains one of Canada’s most trade-dependent provinces, with the United States representing an overwhelming majority of the province’s international merchandise exports.

While Alberta’s energy sector is excluded from the latest 50 per cent tariff measures, which went into effect after trade talks stalled on Aug. 21, the Lethbridge Chamber of Commerce cautions against interpreting that exemption as insulation from broader economic consequences of an escalating trade dispute.

Selected agricultural, processed and manufactured goods are affected, while retaliatory measures, changing supply chains and continued uncertainty have the potential to increase costs and influence future investment throughout the province.

The chamber is calling for a co-ordinated response to the latest U.S. tariffs on Canadian goods, warning that while direct impact will differ across provinces and industries, continued trade uncertainty will be felt by businesses and communities across the country.

The new 50 per cent U.S. tariffs apply to approximately $28 billion in selected Canadian goods and do not represent a blanket tariff on all Canadian exports. Energy, potash and certain other commodities are excluded from this latest round, placing Alberta in a different position than provinces with greater exposure in sectors such as automotive manufacturing, steel and aluminum.

For southern Alberta, however, impact cannot be measured by exports alone.

The regional economy is connected through agriculture, agri-food processing, manufacturing, transportation, construction and energy. Businesses that do not export directly to the U.S. may still rely on U.S. equipment, components and inputs, or supply Canadian companies whose products ultimately enter the U.S. market.

“Trade uncertainty does not stop at the border,” Cyndi Crane, president & CEO of the Lethbridge Chamber of Commerce, said in a news release. “It works its way through supply chains and ultimately reaches local businesses making decisions about hiring, investment, expansion and growth.

“Southern Alberta businesses need stability, predictable market access and the ability to compete.”

Through its policy, Alberta’s Role in Enhancing Interprovincial Collaboration and Strengthening Alberta’s Global Trade and Investment Presence, the Lethbridge chamber says it has advocated for greater regulatory alignment between provinces, mutual recognition of goods and services, improved labour mobility and stronger transportation and trade corridors.

“If it is becoming harder to trade north-south, it makes absolutely no sense to make it difficult to trade east-west,” said Crane. “Canada cannot control every trade decision made in Washington, but we can control the barriers we place between our own provinces.”

Removing internal trade barriers will not replace Canada’s relationship with the U.S., she says, but it can strengthen the domestic economy, provide businesses with greater access to Canadian markets and make the country more resilient when international trade relationships become uncertain.

In an email statement, the Lethbridge BRZ also highlighted a need for support as small and medium businesses will feel pain from the additional tariffs.

“The biggest concern for (local) businesses is uncertainty. Businesses can adapt to difficult circumstances, but they need to know what the rules are so they can make decisions about pricing, inventory, investment and staffing. We understand Premier Smith’s concern that tariffs and counter tariffs hurt businesses and consumers on both sides of the border. Ultimately our focus needs to be getting back to a stable, predictable trading relationship as quickly as possible.”

Smith, in a tweet posted on Aug. 21, said, “I am deeply disappointed that Canada and the United States have not been able to reach a trade agreement. Alberta has always advocated for a tariff free relationship, and will continue to do so. No one benefits from a trade war. Tariffs and counter-tariffs hurt businesses, workers and families on both sides of the border, while weakening one of the most important economic and security relationships in the world.”

“My first concern today is for the Albertans and Canadians whose livelihoods are at risk from these new tariffs and counter-tariffs. I welcome the federal government’s intention to provide relief for those businesses that are impacted. Alberta will continue to advocate for a strong tariff free relationship between Canada and the U.S. and I will be urging the federal government to restart negotiations as soon as possible.”