Tariffs and the changing economic climate impact everyone

Ongoing tariff threats from the United States have created economic uncertainty around the world, with major disruptions impacting Canadian businesses and communities – including Indigenous communities.

Several First Nations in Canada are looking at ways to protect themselves and their sovereignty.

What is a tariff and how does it impact Canada and its communities?

Tariffs are taxes or duties imposed by one country on imported goods and services from another country. Typically, they are calculated by a percentage of the value of those imported goods, and are paid by those who are importing those goods, which ultimately makes the cost for producing or purchasing products more expensive for consumers.

The potential impacts on Canada are vast, including increased costs of exporting, supply chain disruptions, impact on employment, and higher prices for the average consumer.

“It’s every conversation you have. I don’t think we’ve ever hard topics in recent times so dominated with one word,” said Chris McKee, Senior Vice-President of Business Development at the National Circle for Indigenous Agriculture and Food (NCIAF).

The NCIAF works to advance Indigenous agriculture, business, and food production with increased access to the land and the creation of programs and services, including community garden projects.

McKee said since tariffs and trade wars began making headlines, the NCIAF has experienced a significant spike in calls inquiring about their services.

“People are wanting to know how to get into the (agriculture) industry, how do we produce our own food, what does it look like to start a community garden, what does it look like to start farming our own land,” said McKee.  “I think that this has been a kick to say ‘now is the time’ .”

While the direct impacts of the imposed tariffs have yet to be realized, the act of waiting is already having impacts, said McKee.

The unknown is stalling progress, with many businesses and individuals pausing plans and developments, and adjusting budgets, to see how the tariffs play out, said McKee.

“I think people are thinking more now about becoming more food secure and sovereign in their communities so we’re not so vulnerable to the tariff threat at all times,” he said.

Indigenous communities, already marginalized and often dependent on outside sourcing, are particularly susceptible, said McKee.

Now is the perfect time of year to become more food secure by planning a community garden.

“You need labour capital and land, all things communities have,” said McKee. “If you can grow it yourself and be food secure in your community or nation, you combat some of those impacts that tariffs can have on you.”

But some of trade and supply chain challenges are self-imposed. Interprovincial trade barriers in Canada add between 7.8 and 14.5 per cent to the price of good and services we purchase, according to Statistics Canada.

Interprovincial trade barriers can put restrictions on the sale of certain goods, and differing regulations on licensing, certifications and technical standards.

“All of us should be having these conversations about interprovincial trade barriers,” said McKee.

“I think a big magnifying glass is on them right now, the realization that these barriers exist within our own country,” he said. “Those trade routes that existed 500 years ago were without any barriers.”

The Indian Resource Council of Canada (IRC) also believes Canada can do things better within its borders.

On March 10, the IRC, an advocacy group representing the oil and energy interests of First Nations in Canada, issued a statement reading:

“No one is speaking about the rights and interests of First Nations. We are not a spectator in this important dialogue, but rights holders and stewards of our land.”

Stephen Buffalo, IRC President and CEO, and member of Samson Cree Nation in Alberta, told Eagle Feather News his priority is keeping Indigenous communities out of poverty.

“We’re not immune to poverty, bad housing, and third-world issues, so we have to address those and make sure we’re all on the same page to advance our agenda,” said Buffalo.

“I’m in this to get rid of poverty. I’m working with the natural resource sector to ensure that we get away from dependency of the federal government under the Indian Act.”

Buffalo hasn’t seen any organization step up to support First Nations during this time of economic uncertainty. He believes First Nations need to be unified and work with government to ensure communities do not become impoverished.

“I hope this whole tariff issue brings to the forefront that First Nations need to be part of the solution. We need resource revenue sharing so we’re not dependent on the government but what Mother Nature gives,” said Buffalo.

“A lot of different parts of the world need our energy,” he said. “They need it around the world but we’re stuck with one customer, we’re sending it to the United States at a huge discount.”

According to the federal government, 97 per cent of Canada’s crude oil exports went to the United States in 2023, with the remaining 3 percent going to Europe and Hong Kong. And the US buys Canadian oil at a discount and exports at full price, which yields the US a $19 billion annual windfall.

Buffalo said he would like to see more Canadian natural gas going to markets around the world, as well as the controversial Northern Gateway pipeline resumed, and an additional natural gas pipeline to the west coast.

“Taking away capacity from the US to find different markets that truly need our energy is probably in the best interest,” he said.

Buffalo said any type of energy and resource extraction causes environmental disruptions, but as stewards of the land, they need to be responsible for both the environment and the wellbeing of their people.

“I pray for our Chiefs to have unity for the betterment of our people, and the betterment of our future for our young people,” he said. “We need to assert our rightful jurisdiction to ensure we’re participating in these natural resource developments to meet the needs of our people.”