Potential U.S. Tariff Threatens To Put a $174M Hole in Regina’s Economy
November 29, 2024
FOR IMMEDIATE RELEASE
(Regina) The Greater Regina Area (GRA) and Saskatchewan could face significant economic challenges if the United States imposes a 25% tariff on Canadian imports, as threatened by President-elect Donald Trump.
Economic Development Regina (EDR) conducted an in-depth analysis, revealing that this potential policy could result in a $174M direct economic loss for Regina and an export reduction of nearly $4B across key provincial sectors, including agri-food, agricultural equipment, energy and raw materials.
If the proposed 25% tariff remains in place, total exports from these key sectors could decrease 10-25% by 2029, factoring in market changes and potential retaliatory measures.
“With Saskatchewan’s economy heavily reliant on trade, these tariffs pose a serious threat,” said EDR President & CEO Chris Lane. “Our agricultural, manufacturing, and energy sectors are crucial to the province’s economic health, and a disruption in trade with the U.S. could have a devastating impact. The potential loss of billions in exports, combined with resulting job cuts and rising costs, would not only affect businesses but also put a strain on everyday life for families and communities across the province”.
Under the Canada-United States-Mexico Agreement (CUSMA), Saskatchewan exported $49.3B worth of goods to the U.S. in 2023, with the GRA contributing substantially. Global businesses headquartered in the GRA such as Brandt and AGT Foods export and invest in the U.S., creating jobs at home, and markets abroad for Saskatchewan products. Beyond the immediate $174M economic hit, the GRA could also see broader impacts, including the loss of 600 full-time jobs by the end of 2025 (mainly in transportation, warehousing, and manufacturing), and a potential 4-5% rise in inflation by late 2025.
“While these tariffs are not yet certain, it’s essential we understand their potential impact and take action,” said Lane. “We are always working to diversify trade and explore new markets for Regina-based companies, but the United States remains our most important partner. EDR supports and encourages leaders in politics, policy and industry to work together quickly to ensure the continued free trade of Saskatchewan products.”
To read the full analysis, please click here.
For additional information, please contact:
Mattea Columpsi
Manager, Communications
Economic Development Regina
mcolumpsi@economicdevelopmentregina.com
306-565-6392
About Economic Development Regina Inc.
ECONOMIC DEVELOPMENT REGINA INC. (EDR) is the lead agency for economic development for the Greater Regina Area (GRA).
EDR provides leadership to the community with specific accountability for the following core functions:
- Support industry growth and diversification through retention, development, and attraction of industry.
- Find innovative ways to promote sustainable growth while effectively addressing the challenges associated with it.
- Market and promote the Greater Regina Area for business and investment.
- Ensure the Greater Regina Area offers a vibrant and diversified economy for investors, a climate of growth for business and works toward a high quality of life for residents.
