We’re Stronger Together

Today the United States and Canada have entered a new phase of trade tensions with the announcement of sweeping tariffs. The U.S. has imposed a 25% tariff on all goods imported from Canada, while Canada has retaliated with a 25% tariff on $30 billion worth of American goods, with additional tariffs to follow. These measures are set to have significant repercussions on the regional economy of Fort McMurray Wood Buffalo. However, there are actions each of us can take to help mitigate these impacts and support the local economy.

Now is the time for us to unite as a province and a country. We must do everything in our collective power to immediately tear down provincial trade barriers and fast-track the construction of dozens of resource projects, from pipelines to LNG facilities to critical minerals projects. We must strengthen our trade ties throughout Europe, Asia and the Americas for all our energy, agricultural and manufactured products. We also need to drastically increase military spending to ensure we can protect our nation. There is no time to waste on any of these initiatives.

Premier Danielle Smith

Fort McMurray Wood Buffalo has a history of great resilience. These tariffs will present challenges in our economy this year, but I’m confident that we can work together, find solutions, and deliver results.

Lisa Sweet | Interim CEO

Energy Sector Strain

Fort McMurray Wood Buffalo is renowned for our oil sands industry, a critical component of Canada’s energy sector. The newly imposed 10% tariff on Canada’s energy exports to the U.S. is poised to hit this sector hard. The U.S. is a major market for Canadian oil, and these tariffs will likely lead to increased costs for American refineries purchasing Canadian crude. We’ll be keeping a close eye on potential effects of tariffs on the oil sands industry.

What We’re Doing:

·         Industrial Investment: In 2024 our team developed an Industrial Investment Attraction Plan and we’ve been working on the actions since rolling it out. Greater marketing efforts through targeted campaigns, research and data to attract specific industries, and increased outreach to industrial associations and to generate new leads are some of the steps we’re taking.

Actions Residents Can Take:

• Share our energy story: The threat of tariffs restarted many conversations about the role of oil sands development in Canada’s economy. Pathways Alliance shares information, stories, and updates on Canada’s oil sands industry. They’re a great resource to share to help keep these conversations going!

Increased Costs for Local Businesses

The tariffs will also affect local businesses that rely on imported goods from the U.S. With a 25% tariff on American products, businesses in Fort McMurray Wood Buffalo will face higher costs for raw materials, machinery, and other essential goods. These increased costs may be passed on to consumers, leading to higher prices for everyday items. Small and medium-sized enterprises (SMEs) in particular may struggle to absorb these additional expenses, potentially impacting their profitability and sustainability.

What We’re Doing:

·         Programs, Resources + Connections: Startup YMM isn’t just FMWB’s business accelerator – it’s a support to help businesses scale up and grow! Our team at Startup YMM is there to connect you with resources that can help, and we offer a variety of programs that can hone entrepreneurial skills to help you succeed.

Actions Residents Can Take:

• Shop Local: Supporting local businesses by purchasing goods and services from them can help keep money within the community and sustain local enterprises. The Fort McMurray Chamber of Commerce Shop Local Marketplace is a great starting place.
• Advocate for Local Products: Encourage friends and family to buy locally produced items, which can reduce reliance on imported goods and support local manufacturers.

Supply Chain Disruptions

The imposition of tariffs is likely to disrupt supply chains that are deeply integrated between Canada and the U.S. Businesses in our region that depend on cross-border trade will face delays and increased logistical challenges. This could hinder the timely delivery of goods and services, affecting productivity and efficiency. Companies may need to seek alternative suppliers, which could further increase costs and complicate operations.

What We’re Doing:

·         Infrastructure Advocacy: Investments in infrastructure can help ease supply chain disruptions. This isn’t a quick fix, though. We’re advocating through groups such as the Northern Alberta Development Council, Economic Developers Alberta, and others to see projects like the Highway 686 corridor come to fruition.

·         New Investment: Attracting new warehousing and supply chain projects is part of our Industrial Investment Attraction Plan. The friction that has been exposed through these tariffs may be the opportunity an investor is looking for.

Actions Residents Can Take:

• Be Patient and Understanding: Recognize that local businesses may face delays and challenges due to supply chain disruptions. Show patience and understanding during this period.
• Support Local Initiatives: Participate in community initiatives (like the Chamber’s Marketplace) aimed at finding local solutions to supply chain issues, such as local sourcing and collaborative efforts.

Economic Uncertainty

The uncertainty surrounding the trade relationship between Canada and the U.S. could deter investment in Fort McMurray Wood Buffalo. Investors typically seek stable and predictable environments, and the current trade tensions may lead to a cautious approach. There is a risk that this could slow down economic growth and development projects in the region, affecting job creation and economic diversification efforts.

What We’re Doing:

·         A Bigger Story than Tariffs: FMWB has massive opportunities. We have the people, the resources, and the momentum to drive new investments. We’re regularly sharing updates on our economy with investors and projects that are underway to reassure them FMWB is the right choice. And we’re leveraging our history of resilience to demonstrate that our region can succeed under challenging conditions.

Actions Residents Can Take:

• Stay Informed: Keep up-to-date with the latest developments in trade policies and their potential impacts on the local economy. Knowledge is power. Two resources you should check out are the Tariff Toolkit designed by Startup Canada. It’s a resource page that is compiling up-to-date information, training, and other useful links. BusinessLink also wrote a great article that’s a useful primer on tariffs and how to prepare your business.
• Engage with Local Leaders: Participate in community meetings and discussions with local leaders to voice concerns and contribute to solutions that can help mitigate economic uncertainty.
• Apply for Support Programs: Government programs are available for residents and businesses. For residents, take a look at the Benefits Finder. Business owners can use the Business Benefits Finder. Each site uses your responses from a quick series of questions to direct you to possible supports.

Community Resilience and Adaptation

Despite these challenges, Fort McMurray Wood Buffalo has a history of resilience. Our community has faced and overcome significant adversities in the past, including natural disasters and economic downturns. Local leaders and businesses are adapting to this new trade environment by exploring alternative markets, enhancing operational efficiencies, and advocating for supportive policies at the provincial and federal levels.

We’re Stronger Together

The newly announced tariffs between Canada and the U.S. will affect our region this year. From the energy sector to local businesses, the ripple effects will be felt across the community. However, with resilience and strategic adaptation, Fort McMurray Wood Buffalo can navigate these challenges and continue to thrive in the face of adversity. By taking proactive steps, local residents can play a crucial role in supporting the economy and ensuring a brighter future for the community.