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Abbotsford ranked as the B.C. city most vulnerable to Trump tariffs

Canadian Chamber analysis ranks Abbotsford-Mission CMA is 15th-most exposed region in the country
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The Abbotsford-Mission CMA has been ranked highly vulnerable to Trump tariffs by the Canadian Chamber of Commerce.

A Canadian Chamber of Commerce analysis looking at the impact of American tariffs on Canadian cities has identified Abbotsford as the city most affected in British Columbia and 15th most in the country.

The Abbotsford-Mission census metropolitan area was graded with a tariff exposure index ranking of 7.6 per cent. The index score is a sum of a location鈥檚 excess U.S. trade intensity and its excess U.S. export dependence (in percentage points relative to the national average).

Saint John, N.B. (131.1 per cent) and Calgary, Alta. (81.6 per cent) were first and second in the analysis. The study shows that 90.7 per cent of all exports from Abbotsford go to the U.S., which ranks the city 12th in the country. There are also 330 exporters to the U.S. located in Abbotsford. That number ranks Abbotsford 19th in the country. In B.C. it's only Vancouver and Victoria that have more exporters than Abbotsford.

U.S.A. president and former reality TV star Donald Trump initially stated on Feb. 4 that he would impose a 25 per cent tariff 鈥 with the exception of 10 per cent on Canadian crude oil and energy imports 鈥 on all imports from Canada and Mexico unless the countries took steps to curb illegal immigration and drug trafficking. Canada and Mexico then confirmed plans made months prior that plans to curb drug trafficking and illegal immigration were continuing as planned, which led to Trump pushing that date back to March 4.

However, this week Trump signed a memorandum calling for reciprocal trade tariffs on all major trading partners. It's unclear whether or not these will affect Canada.

The data suggests that the tariffs would reduce real annual income by $1,900 CAD per Canadian and $1,300 USD per American.  

Alex Mitchell, the CEO of the Abbotsford Chamber of Commerce, stated that there are local worries about whatever the final outcome of all this talk is.

"When we're this exposed it is concerning," she said of Abbotsford's vulnerability. "We continue to talk about tariffs being bad for both sides, but ultimately it impacts a businesses ability to operate in a financially sustainable way. If we see U.S. customers shift away from our Canadian businesses and suppliers, then we're going to see the detrimental economic impact of that."

Mitchell pointed out that Abbotsford's strong manufacturing industry, as well as steel and aluminum fabricators and agriculture would be hit hard by the proposed tariffs. She said governments at all levels should be using this time to develop other strategies.

"We need to use this time as a catalyst for change," she said. "And a way for government to rethink how they support business and approve projects. On the business side we need to think about how our businesses seek new trading relationships and building a broader customer base instead of just relying on one country."

The ACOC launched a survey earlier this month to gain more data from local businesses and Mitchell said early responses have been varied. She said some organizations have been preparing for months and have been moving shipments quickly while others don't have a set plan in place yet.

"Obviously, number one priority for a lot of these businesses is diversifying their international supplier base," she said. "They're looking at exploring more domestic manufacturing or new sourcing alternatives and then implementing price adjustment strategies."

She said the reciprocal tariffs suggested by Trump would lead to some significant immediate changes for businesses. Mitchell said she is also urging businesses to be contacting their American customers and telling them to speak to their government representatives about the consequences of these decisions.

"It isn't the Canadian government who is doing this, it is the U.S.," she said. "So the U.S. government needs to hear from their stakeholders about how crippling this will be for the American economy and American businesses because they are the ones who will be paying for these increased costs. We've seen this story before and it's not good for anyone. This president wants to see an America First policy but at the end of the day it's who pays first and that will be American businesses."

Mitchell added that Abbotsford businesses should also double down on local business relationships in this time. She said the chamber wants to see those strengthened as we head into these uncertain times.

"To each of our businesses, we are with you. The Abbotsford Chamber is committed to fighting against these tariffs with every tool available, including advocacy through the national Chamber, elected officials, and through Chambers of Commerce on the American side鈥, said Kevin Mierau President of the ACOC.

The survey can be found by clicking anywhere in this link.



Ben Lypka

About the Author: Ben Lypka

I joined the Abbotsford News in 2015.
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