In Wake Of Trump Tariff Threats, Cross-Border Commerce Groups Form Binational Partnership On Tariffs And Trade

“As the site of one of Canada’s busiest border crossings, a major exporter in manufacturing and agri-food, and as one of the country’s premier tourist destinations, much of Niagara’s prosperity has been built on the strong partnership we have always enjoyed with our American counterparts.”  – Mishka Balsom, CEO, Greater Niagara Chamber 0f Commerce

“Our group does not favour tariffs between our two countries. 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.”    – – Dottie Gallagher, President & CEO, Buffalo Niagara Partnership

“Placing a heavy tariff on all imports from our largest trading partner will raise costs and drive inflation on employers and families across the Buffalo Niagara region.”

News from the Greater Niagara Chamber of Commerce in Niagara, Ontario

Posted February 2^nd, 2025 on Niagara At Large

The United States and Canada share a longstanding history of cross-border partnerships and business collaboration.

With deep regional economic ties, the Buffalo-Niagara Partnership, Chatham-Kent Chamber of Commerce, Hamilton Chamber of Commerce, Greater Niagara Chamber of Commerce, and Windsor-Essex Chamber of Commerce jointly affirm our commitment to fostering a robust and mutually beneficial economic relationship between the United States and Canada.

We are stronger together. The trade partnership between the two countries has made both of us prosperous, and it still has untapped potential to help our economies grow.

The trade relationship between the United States and Canada is the largest in the world, worth $1.3 trillion per year. 1.4 million American jobs and 2.3 million Canadian jobs depend upon this relationship.

Our binational group of chambers represent 5,065 organizations on both sides of the border employing 430,000 people, and cover both the busiest passenger and cargo land crossings in the country.

Most of our members are small and medium-sized enterprises (SMEs), who are particularly vulnerable as they do not have the large cash reserves or lobbying power of big firms. 98% of all Canadian businesses are SMEs, and nearly half of the Canadian labour force works for an SME.

The United States and Canada have built the largest and most successful trade partnership in the world, supporting millions of jobs and driving economic growth on both sides of the border.

Businesses depend on predictable, stable trade policies, and unnecessary tariffs only create economic hardship for workers, consumers, and industries. As chambers of commerce representing key cross-border regions, we stand united in calling for continued collaboration, the removal of trade barriers, and a commitment to policies that strengthen our shared prosperity. We are stronger together.

In light of recent discussions surrounding tariffs and trade policies, we are united in our call for continued collaboration and dialogue to reduce barriers to trade and ensure a predictable and stable environment for businesses and workers.

Our group does not favour tariffs between our two countries. 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 Canadian-U.S. trade relationship has been mutually beneficial since the founding of both countries. As representatives of businesses on both sides of our shared border, the chamber group is committed to supporting and strengthening our trade relationship.

Key Priorities for Cross-Border Trade

• 1.       Maintain a fair and prosperous trade relationship without additional tariffs. Under a retaliatory scenario, the average American family will lose $1,300 USD per year from the proposed tariffs, while Canadian households will lose an average of $1,900 CAD. U.S. gasoline prices are predicted to jump by 30 cents per gallon the moment that tariffs are applied, for example. 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.
• 2.       Commit to USMCA/CUSMA. The trade agreement has been a success; double-digit trade growth since its inception has made Mexico and Canada the top trading partners of the United States, with trade volumes 44% 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.
• 3.       Develop the Fortress Am-Can proposals by the Government of Ontario, specifically:
• a.       increasing the U.S.-Canada steel trade by 25% and halting Chinese dumping in north American markets
• b.       strengthening the agri-food trade to reduce food reliance on countries outside the American-Canadian partnership
• c.       strengthening the integrated automotive sector with the goal of producing an additional one million Am-Can vehicles per year by 2028
• d.       Harmonizing professional certifications between both countries
• 4.       Repeal the Digital Services Tax and allow a freer flow of digital services between American and Canadian firms
• 5.       Repeal the Prohibition on the Purchase of Residential Property by Non-Canadians Act for U.S. purchasers
• 6.       Accelerate Canada’s timeline for a commitment to 2%-of-GDP spending on defence
• 7.       Commit 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. While Canada’s $1.3B investment in border security is welcome, both countries should cooperate to enhance border security.

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