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“Southwestern Ontario, the nation’s vitality centres, and elements of Quebec are going to be hit rather a lot tougher than the Ottawa area,” says the research’s writer.
Revealed Feb 11, 2025 • Final up to date 11 minutes in the past • 3 minute learn
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Ottawa-Gatineau is residence to 812 export companies, which produced $8 billion value of products in 2023. They have been accountable for 8.4 per cent of the area’s financial output. Picture by Tony Caldwell /POSTMEDIA
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A brand new research that examines the financial affect of U.S. tariffs on Canadian cities suggests Ottawa-Gatineau will probably be comparatively properly positioned to face up to the threatened commerce turbulence.
The Canadian Chamber of Commerce research assesses the potential affect of U.S. President Donald Trump’s tariffs on 41 Canadian cities.
It reveals cities with economies that depend on crude oil exports, vehicle and elements manufacturing are the most definitely to endure due to tariffs. Saint John, N.B., Calgary, Windsor, Kitchener-Cambridge-Waterloo and Brantford high the listing of Canada’s most tariff-vulnerable cities.
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Ottawa-Gatineau ranked twenty ninth on the listing of 41 Canadian cities.
The Nationwide Capital Area’s tariff publicity was 10.9 per cent beneath that of the typical Canadian metropolis, the research discovered.
Ottawa-Gatineau is residence to 812 export companies, which produced $8 billion value of products in 2023. They have been accountable for 8.4 per cent of the area’s financial output.
“Ottawa’s economy isn’t as trade exposed. It’s obviously much more focused on high tech and public sector government jobs,” research writer Stephen Tapp, the chamber’s chief economist, stated in an interview.
“That’s not to say there’s no tariff impacts on Ottawa-Gatineau, but I would say that southwestern Ontario, the country’s energy centres, and parts of Quebec are going to be hit a lot harder than the Ottawa region.”
Earlier this month, Trump agreed to pause for 30 days his govt order imposing a ten per cent tariff on Canadian vitality exports and a 25 per cent tariff on all different Canadian exports.
The Canadian Chamber of Commerce used granular Statistics Canada information to foretell which Canadian cities will probably be most affected by these tariffs. It examined financial information for the 41 census metropolitan areas (CMAs) in Canada with greater than 100,000 individuals.
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Researchers constructed a “U.S. tariff exposure index” to replicate each the export depth of every metropolis’s economic system and its dependence on the U.S. as a purchaser for these items.
“Our modelling estimates that the tariff will impose the steepest hit for the value of Canada’s energy exports, which explains why the highest vulnerabilities are for Saint John, New Brunswick and Calgary, Alberta,” the research concluded.
Canadian vitality exports to the U.S. have been value greater than $176 billion in 2024.
Saint John is residence to the Irving Oil Refinery, the most important crude oil refinery in Canada, which may course of greater than 320,000 barrels a day. Greater than 80 per cent of that output is exported to the U.S. New Brunswick’s seafood and forestry merchandise are additionally susceptible to tariffs.
Cities in southern Ontario, together with Windsor, Kitchener, Waterloo, Cambridge, Brantford, Guelph and Hamilton, additionally rating excessive on the tariff vulnerability index due to their reliance on automobile elements and metal manufacturing.
Windsor is residence to meeting vegetation for Ford and Stellantis, whereas Linamar, Canada’s second largest auto elements maker, is headquartered in Guelph. Hamilton is the metal capital of Canada with vegetation operated by ArcelorMittal Dofasco and Stelco.
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Quebec can be residence to a few cities with higher-than-average tariff danger, together with Saguenay-Lac-Saint-Jean, which is accountable for about one-third of Canada’s aluminum manufacturing. Most of that (85 per cent) is exported to the U.S. Trois-Rivières handles aluminum, forestry and agri-food merchandise, whereas Drummondville is a large exporter of wooden merchandise and furnishings to the U.S.
Tapp, the chamber’s senior vice-president of analysis, information and analytics, stated his crew is now working to know how Canada’s retaliatory tariffs may probably have an effect on native economies right here.
Already, he stated, there’s a powerful sentiment to keep away from U.S. merchandise amongst Canadian shoppers.
“I think people are really just shocked and upset,” he stated, “to think that our biggest ally and trading partner would, for reasons that don’t make a lot of sense, come out and be harder on us than on countries like China and Russia.”
Andrew Duffy is a Nationwide Newspaper Award-winning reporter and long-form function author primarily based in Ottawa. To assist his work, together with unique content material for subscribers solely, join right here: ottawacitizen.com/subscribe
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