How Will Tariffs Affect Manitobans and Indigenous-owned Businesses? – ICC
After a brief pause to last month’s tariffs, the United States has once again announced a broad 25% tariff on Canadian goods and services, with an exception of 10% for Canadian oil imports. Analysts warn that these tariffs could have profound consequences for all economies involved.
According to one study by the Peterson Institue for International Economics (PIIE), Canada’s yearly output could contract by as much as $100 billion. The Bank of Canada similarly forecasts an inflationary future should American tariffs remain in place, with the potential for recession in the ensuing year. Canadian officials, including the Manitoba Premier, have announced retaliatory measures to protect Canadian industry.
Tariffs are a tax on goods and services paid for by the importer –– consumers and businesses –– which, in effect, raises the cost of said goods and services. Manitoba’s economy is particularly vulnerable to U.S. tariffs due to its strong reliance on exports. In 2024, up to 70% of Manitoba’s exports went to the United States. The province’s key industries such as agriculture, manufacturing, and natural resources, are all heavily tied to cross-border trade. A 25% tariff means Manitoban goods will become significantly more expensive for American buyers, reducing demand and cutting into local businesses’ revenue.
