The Looming Threat of Tariffs: A New Challenge for Border Communities
The imposition of tariffs on Canada and Mexico, set to take effect on March 4, has created a sense of unease among border communities. These tariffs, related to concerns over fentanyl, were announced by U.S. President Donald Trump and are expected to impose a 25% tax on goods from these countries. Communities like Estevan, Saskatchewan, are preparing for the potential impact on their trade and tourism industries. Rebecca Foord, the community development officer for Estevan, noted that the tariffs will likely force these communities to adapt and change their strategies. “I think it’s just going to force us all to pivot and change a little bit,” she said. This sentiment reflects the uncertainty and resilience of these border towns as they brace for the economic shifts ahead.
Community Collaboration: Planning for the Future
In response to the looming tariffs, communities near the border are coming together to plan for the future. Foord explained that Estevan and surrounding areas in southeast Saskatchewan have conducted an “asset map” to identify their strengths in tourism, events, and local businesses. By bringing together stakeholders from across the region, they aim to proactively support tourists and local businesses. “Having that list is allowing us to be proactive in how we support our tourists and how we support tourism and local businesses,” Foord said. This collaborative approach highlights the determination of these communities to remain viable and attractive despite the challenges posed by the tariffs.
Shifting Focus: Exploring New Markets
While the primary concern is the potential decline in American tourists and business, there is also a growing interest in exploring markets beyond the United States. Merissa Scarlett, executive director of the Estevan Chamber of Commerce, believes that there are opportunities to attract visitors and trade from other provinces and even international markets. “There is an opportunity to explore beyond the United States,” she said. Scarlett pointed out that Estevan’s strategic location, with major railways and highways, makes it a potential hub for shipping goods to the coast and even to Mexico. This shift in focus reflects a broader strategy to diversify the local economy and reduce reliance on U.S. trade.
Economic Concerns: Impact on Local Businesses
Despite the optimism about exploring new markets, there are significant concerns about the immediate impact of the tariffs on the local economy. Scarlett noted that many businesses in Estevan are already experiencing a slowdown in customer traffic. With the Canadian dollar at a lower value, cross-border shopping from the U.S. has been a vital part of the local economy. “You will see plates from even North Dakota jumping over to go to Walmart or go to some of our local stores,” Scarlett said. However, she is uncertain whether this trend will continue if the tariffs make goods more expensive. The potential drop in cross-border shopping, combined with the slowdown in key industries like oil, gas, and manufacturing, has raised fears of layoffs and economic hardship.
Uncertainty and Resilience: Navigating the Tariff Landscape
The impact of the tariffs is difficult to predict, and this uncertainty is causing anxiety for many in Estevan. Scarlett acknowledged that while there are nerves, it is hard to know exactly how the tariffs will affect the community. Some businesses may see a drop in customers, while others may find new opportunities in domestic or international markets. The key for these communities will be their ability to adapt and respond to the changing economic landscape. By working together and exploring new avenues for trade and tourism, Estevan and other border towns are demonstrating their resilience in the face of uncertainty.
Looking Ahead: Preparing for the Future
As the tariffs take effect, the focus for Estevan and similar communities will be on minimizing the negative impacts while maximizing new opportunities. This includes continuing to attract tourists from both within Canada and beyond, supporting local businesses, and exploring alternative markets for goods. The collaborative efforts underway in southeast Saskatchewan serve as a model for how communities can come together to address economic challenges. While the road ahead may be uncertain, the determination and resourcefulness of these communities provide hope for navigating the challenges posed by the tariffs.
