The new tariffs imposed by the Trump administration on Canadian goods, aimed at pressuring Canada to address illegal drug trafficking into the United States, are predicted to have a substantial impact on Alaska. Alaska's economy is heavily reliant on trade with Canada, and the tariffs, including a 25% levy on Canadian imports, are likely to increase prices for a variety of goods in Alaska.
The Trump administration's new tariffs on Canadian goods, which are intended to pressure Canada to do more to stem the flow of illegal drugs into the United States, are expected to have a significant impact on Alaska . Alaska is heavily reliant on trade with Canada , and the tariffs, which include a 25% tariff on imports from Canada , Alaska 's fourth-largest trading partner, and a 25% tariff on imports from Mexico, are likely to make a variety of products more expensive in Alaska .
Alaskans should be aware that these tariffs will make life more expensive for them and will be damaging to businesses on both sides of the border. Canadian goods will be more expensive in Alaska because higher costs paid by American importers will be passed on to American consumers. The Yukon government is closely monitoring the situation. The tariffs could also affect the price of gasoline, heating fuel, and natural gas in Alaska. Alaska's Nikiski refinery processes crude oil for in-state use, and if Southcentral Alaska switches to imported natural gas, the nearest source is a terminal slated to open in British Columbia this summer. Alaska exports significant amounts of goods to Canada, mostly unrefined minerals and ore concentrates, but also a substantial amount of seafood. Alaska sends almost 30% of its zinc to a smelter in British Columbia. In the Southeast Alaska town of Skagway, the Yukon government is planning to spend more than $45 million on a new terminal designed to export ore extracted from Yukon mines. Sen. Cathy Giessel, R-Anchorage and co-chair of the state Senate’s committee on world trade, said on Friday that she intends to introduce a resolution formally opposing the tariffs. The state of Alaska’s international trade office, devoted to increasing Alaska’s commerce with other nations, was unable to say what impacts Gov. Mike Dunleavy’s administration expects here. Alaska exported $1.2 billion worth of goods to Canada in 2023, with almost half that total consisting of seafood. No state exports more seafood internationally than Alaska does, and when a Dunleavy-commissioned committee met early this year to craft a plan to reverse the seafood industry’s decline, Jeremy Woodrow, director of the state-run Alaska Seafood Marketing Institute, said on Friday that if the tariffs encourage Americans to buy more Alaska seafood, then it’s possible that Alaska could avoid an economic hit. The value of the U.S. dollar, the value of foreign currencies, plus normal supply and demand also matter in how much fish gets exported where, he said. Tariffs are only part of the equation. We lost China as a destination market because of those high tariffs, he said, adding that the trade that exists today tends to involve fish being exported to China for processing, then re-exported to another country for a final destination. This time around, he said, I think a lot of us are looking at Trump’s tariffs, especially for Canada and China, as more of a bargaining chip, and that these aren’t a lasting tariff. Trump has said he wants Canada to do more to interdict the flow of illegal drugs coming to the United States. If Trump thinks Canada has done enough, he could lift the tariffs. In the meantime, Woodrow said, ASMI will be working to encourage Americans to buy more Alaska seafood and will continue to grow the market for Alaska seafood in places like South America, which is unaffected — so far — by Trump’s tariff actions.
ALASKA CANADA TRUMP TARIFFS TRADE ECONOMY SEAFOOD NATURAL GAS
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