Tariffs threaten cost of living for Newfoundlanders and Labradorians

Newfoundland and Labrador’s economy is at risk because of U.S. President Donald Trump’s threat to impose a 25 per cent tariff. 

Morgan Little
Kicker

The cost of living in Newfoundland and Labrador would rise and the economy would falter if tariffs promised by U.S. President Donald Trump are imposed, experts say. 

Trump has threatened to impose 20 per cent tariffs on Canadian goods and services if it doesn’t beef up border security – specifically to halt the flow of fentanyl and illegal immigration into the United States.

If the 25 per cent tariffs were to become a reality, any product being exported from the province to the U.S. would become more expensive and less competitive, threatening companies and employees here. If Canada retaliates with tariffs against U.S. products and services, it could increase the cost of living for Newfoundlanders and Labradorians.

“I would imagine because of low income and high prices, the cost of living would be relatively higher,” said Tony Fang, an economics professor at Memorial University. “Your relative income will probably be lower because there would be a lot of jobs loss.” 

Tariffs could threaten job security across several industries in Newfoundland and Labrador.

“When you look at a 25 per cent tariff, you’re looking at anywhere in the range of 10,000 to 20,000 jobs that could be at stake,” said Andrew Parsons, minister of Industry, Energy and Technology.   

Many Newfoundland and Labrador industries benefit from free trade with the U.S.A., but tariffs would strain that relationship.

“Look, just at a year ago, we actually exported about $4.5 billion dollars to the U.S. – so just about a third of our exports,”  said Parsons 

Newfoundland and Labrador has a range of Industries that would be affected by tariffs.

“The oil and gas, fishing and mining industry would be hit really hard, and soft wood lumber,” warned Fang.

Parsons said the government is figuring out a game plan for how to respond to tariffs.

“The goal obviously would be to avoid this entirely because of the impact not only here but the impact in the U.S. would be massive as well,” Parsons said. “I’m not sure if all of their citizens realize how it’s going to affect them.” 

Things might not be bright for the United States if tariffs are implemented. 

“There are a number of different reasons that this would actually be a lose-lose situation for both Canada and the U.S… said Fang. “It wouldn’t necessarily generate jobs has Trump has anticipated.”