Region among top impacted areas for looming U.S. tariffs, report shows
Posted Feb 13, 2025 07:25:08 AM.
Last Updated Feb 13, 2025 12:21:11 PM.
In another local implication stretching from lingering U.S. tariffs, a new report is showing that Waterloo Region could be one of the most heavily impacted areas throughout Canada.
The latest report comes from the Canadian Chamber of Commerce, detailing the state of vulnerability for the top 41 cities across the country, should those 25 per cent across-the-board tariffs go into effect.
Of those 41, the reports lists Waterloo Region, consisting of Kitchener, Cambridge, and Waterloo, as the fourth highest in terms of potential vulnerability. Much of the reason for where the region places on the list is due to its heavy involvement in the manufacturing sector.
Last year alone, Waterloo Region accounted for $18 billion in manufacturing exports to the U.S. This accounts for upwards of 92 per cent of the region’s total exports.
“Our modelling estimates that automotive and parts manufacturing would be the second most negatively impacted sector by U.S. tariffs,” said Chief Economist with the Canadian Chamber of Commerce, Stephen Tapp, in the report. “Therefore, it’s no surprise to see several cities in southwestern Ontario occupying the third to sixth spots on the list.”
The municipality isn’t alone though in terms of potentially deep impacts should those tariffs be implemented, with some of its closest neighbours not far behind. Brantford and Guelph rank fifth and sixth on the list, with Hamilton down at eighth.
“These rankings are designed to highlight the relative exposures within Canada to U.S. tariffs,” mentioned Tapp. “This is a complicated and fluid situation and the ultimate impact for Canada’s local economies from these tariffs is highly uncertain. The economic damage done depends heavily on how long these tariffs are in place, or threatened.”
It’s all another reason why so many residents, businesses, and even local councils are pushing towards a “buy Canadian” focus as the timeline continues to tick down on those potentially crippling U.S. tariffs.
