Newly imposed tariffs will have significant repercussions for Calgarians who are already struggling with the cost of living. For individuals and families experiencing poverty, these tariffs will increase the price of essential goods, making it even harder to afford basic needs like food, clothing, and shelter. 

As discussions unfold about the impact of these tariffs on affected industries, we cannot forget the 163,000 Calgarians who will bear the brunt of rising costs. For these Calgarians, the burden of increased expenses could deepen financial hardship, forcing difficult decisions between food and housing. 

VCC urges policymakers to prioritize economic resilience and social equity in their responses, ensuring no Calgarian is left behind. 

The impact of tariffs on Canadians 
In early February, uncertainty around tariffs affected the Canadian dollar—it dropped to 67 cents, the lowest level since 2003. Economists predict the weaker dollar, and the newly imposed tariffs will increase inflation and unemployment.  

The full impact of the 25% tariff on all goods and 10% on energy remains to be seen. Below, we’ve highlighted a few estimates from Canadian economists and policy experts: 

• A loss of 600,000 Canadian jobs, potentially pushing the unemployment rate up to nearly 10%.  
• A loss of 90,000 Alberta jobs over the next three years, based on an $8.7 billion proposed deficit announced in Budget 2025. 
• Some estimates suggest that total economic output could decline by 4 percent, unemployment could rise by a full percentage point, and investment could drop by nearly one-quarter. 
• The cost to Canadian households would average about $1,900 annually. 
• The price of food, especially fruits and vegetables, is expected to rise quickly. Canada imports about 70% of its vegetable supply and 40% of its fruit supply from the U.S. (In 2024, a family of four in Canada spent about $16,000 on groceries—five years ago, it was $13,000.)  
• A 1% reduction in primary household income will reduce the provincial budget by $200 million. threatening the security of funding for vital front-line and public services. 
• The automotive industry will be impacted by tariffs starting April 2. A rise in the price of cars may force more people to rely on public transportation, highlighting the urgent need for a reliable and affordable transit system.

The relief plan for impacted Canadians 

Lower-income Canadians are likely to face the greatest challenges as price increases driven by tariffs take hold. To address this, some economists and policy experts are urging the government to introduce a groceries and essentials benefit as a means to reduce poverty and food insecurity. This targeted financial relief would help low-income families cope with the immediate impact of higher prices, ensuring they can still access basic needs without falling deeper into poverty. 

The Government of Canada is expected to release the details of a financial support package in the coming days. More information to come. 

What history has taught us 

This isn’t the first time in recent history that the U.S. has imposed tariffs on Canada. In April 2017, during his first presidency, Donald Trump announced a 20% tariff on Canadian lumber. A year later, in June 2018, the U.S. imposed import tariffs of 25% on Canadian steel and 10% on Canadian aluminum—and Canada reciprocated a month later.  

At the time, the Government of Canada announced a $2 billion aid package to the steel and aluminum industry to help them weather the impact of the U.S. trade war. The aid package included support for employees, such as employment insurance, career counselling, and skills and training support. Employers received support to retain their skilled workforce and avoid layoffs and were exempted from paying the import duties on steel and aluminum if they couldn't source the product within Canada or had contracts requiring them to import from the United States. All tariffs were removed in May 2019.  

The path forward 

Without swift action, more people will be pushed into deeper poverty. Immediate income supports such as targeted relief measures, increases to existing benefits, and investments in poverty-reduction programs are critical to mitigating the harm these tariffs will cause.