A binational group of chambers of commerce is standing united in calling for continued collaboration to avoid tariffs from the U.S.
The group made up of the Chatham-Kent Chamber of Commerce, Windsor-Essex Chamber of Commerce, Hamilton Chamber of Commerce, Greater Niagara Chamber of Commerce, and Buffalo-Niagara Partnership are calling for the removal of trade barriers and a commitment to policies that strengthen the "shared prosperity" of both Canada and the U.S.
The chambers warns that retaliatory tariffs will result in the average Canadian household losing $1,900 CAD a year from the proposed tariffs, while an American family will lose an average of $1,300 USD per year.
The binational group noted U.S. gasoline prices are predicted to jump by 30 cents per gallon the moment that the 25 per cent tariffs are applied, which the White House said will proceed on Saturday as planned.
Food items such as avocados, chocolate, and coffee are mostly imported with no readily-available substitute sources, and U.S. prices could rise by the full 25 percent amount within a few weeks, according to the chambers.
The group wants a commitment to Canada-United States-Mexico Agreement, saying it has been a success with double-digit trade growth since its inception.
The agreement has made Mexico and Canada the top trading partners of the United States, with trade volumes 44 per cent higher than U.S. goods trade with China.
"The group supports the U.S. commitment to examine its trade imbalance in a data-driven manner, and recommends the findings be brought forward at the scheduled renegotiation of USMCA in 2026," said the binational group in a news release on Friday.
The group is also calling for increasing the U.S.-Canada steel trade by 25 per cent and halting Chinese dumping in north American markets; strengthening the agri-food trade to reduce food reliance on countries outside of the American-Canadian partnership; and strengthening the integrated automotive sector with the goal of producing an additional one million Am-Can vehicles per year by 2028.
The chambers also want Canada to accelerate its timeline for a commitment to spend 2%-of-GDP on defense and a commitment to greater border security measures, including increased staffing at border crossings, greater use of technology such as drones and x-ray scanners, and improved intelligence sharing on known and suspected offenders attempting to cross the border.
“President Trump's proposed 25 per cent tariffs on Canadian goods poses a significant threat to food security and agricultural supply chains in both the United States and Canada. These tariffs could disrupt the flow of agricultural products across the border, potentially leading to higher food prices and reduced availability of certain produce," said Chatham-Kent Chamber of Commerce Chair B.J. Griffiths. "The impact would be particularly severe for greenhouse growers in southwestern Ontario, where 90 per cent of produce is exported to the U.S. market."
Griffiths noted the tariffs could also affect the import and export of critical agricultural inputs like seeds, fertilizers, and farm machinery from and to the U.S., "further complicating the situation" for Canadian and U.S. farmers.
He said agriculture represents $4 billion in GDP and 3,500 jobs in Chatham-Kent.
"While challenges are undoubtedly present, Chatham-Kent's economic fundamentals remain strong. Our diverse economy, skilled workforce, and strategic resources position us well to navigate the new trade landscape," Griffiths said.
According to the group, Windsor-Detroit is the busiest land crossing in North America with approximately 8,000 trucks carrying an estimated $325 million or one third of all Canada-U.S. trade flowing across the border daily.
"As the Automotive Capital of Canada, and home to the largest cluster of greenhouses in North America, a significant percentage of Windsor-Essex economy is export dependent. The Windsor-Essex Chamber of Commerce supports this alliance and advocates for continued economic partnerships that mutually enhance the quality of life for citizens and business on both sides of our shared border,” Windsor-Essex Regional Chamber of Commerce President & CEO Ryan Donally expressed.
The trade relationship between the United States and Canada is the largest in the world, worth $1.3 trillion per year, according to the binational chamber group.
It noted 1.4 million American jobs and 2.3 million Canadian jobs depend on this relationship.
"At a time of high inflation and when governments on both sides of the border have committed to fighting that inflation, this entirely avoidable economic burden to American and Canadian families must be rejected," the group noted.