Tariffs could have ‘direct impact’ on Nunavut’s cost of living: Akeeagok
Federal and territorial leaders discuss response strategies in face of Trump’s tariff threat
Canada’s premiers, including Nunavut Premier P.J. Akeeagok at left, are continuing to meet virtually after their in-person conference on Jan. 15, over U.S. President Donald Trump’s plans to levy a 25 per cent tariff on Canadian goods imported to the U.S. (Photo by Nehaa Bimal)
Any federal support to mitigate the impacts of a trade war with the U.S. needs to also flow north, says Premier P.J. Akeeagok.
He spoke to Nunatsiaq News after meeting with Prime Minister Justin Trudeau, federal Intergovernmental Affairs Minister Dominic LeBlanc and the country’s other premiers Wednesday, saying the conversation allowed him to stress his territory’s needs.
“We didn’t dive too much into the specifics, but the supports that may be needed in Nunavut was highlighted and mentioned,” Akeeagok said.
The call was part of ongoing discussions regarding Canada’s trade relationship with the U.S. in light of President Donald Trump’s threats to impose a 25 per cent tariff on imports of Canadian goods, which could take effect as soon as Feb. 1.
It took place on the same day as the U.S. Senate confirmation hearing for Howard Lutnick, whom Trump has selected to lead U.S. tariff policy as commerce secretary.
The federal government has been working on a suite of retaliatory tariffs if the U.S. tariffs are imposed. These moves have the potential of driving up inflation, as Nunavut already suffers from high costs of living and doing business.
“There is a huge potential that the tariffs will have a very direct impact in terms of the cost of living,” Akeeagok said.
“Just looking at all the capital projects that we’re hoping to do or whether it’s groceries, fuel, or just every potential good that we rely on, there’s a huge potential that they will be impacted.”
While much of the national conversation has focused on economic sectors such as energy and manufacturing, Akeeagok said Nunavut faces unique challenges that need to be addressed.
“This has really put a focus on, as a country, what we’re able to do, whether it’s looking at challenges with interprovincial trade barriers and how we could find streamlines to support each other,” he said, referring to Trudeau’s emphasis on the importance of removing barriers to trade between provinces and territories during the meeting.
Canada’s trade ministers are set to meet in Toronto Friday to discuss ways to bolster domestic trade and supply chain security. Nunavut will be represented by David Akeeagok, minister for economic development.
“When Minister Akeeagok does go to the meeting, I suspect they will be discussing a lot of what we’ve been sharing here on what solutions we have to offer to the challenges that are before us,” Akeeagok said.
Trudeau and Canada’s premiers plan to reconvene next week — or sooner if needed — to discuss next steps in Canada’s engagement with the U.S., said a summary issued by the Prime Minister’s Office after Wednesday’s meeting.
The premiers plan to “continue working together to protect Canadian consumers, jobs, and businesses,” it said.
Perhaps Nunavut should take a serious look at how much the federal policy of “Supply Management” contributes to keeping the cost of food in Nunavut artificially high. Supply management artificially keeps the cost of milk, eggs, chickens, and all dairy products higher than they need to be, while making the producers of those goods wealthy. It’s easy to rail against the cost of food and blame it all on “greedy” retailers. And the federal government will not welcome any scrutiny of Supply Management, which they have protected for decades, contrary to the interests of the gullible consumers. The government is happy to have you blame retailers because that takes your attention away from looking at the real reason why the cost of eggs, milk and all dairy products, and poultry products are artificially high. It’s one area to scrutinize if you want to seriously look at northern food costs.
Supply management, ensuring prices remain high while quality remains mediocre.
Supply Management also keeps the price stable and ensures availability. I certainly wouldn’t want to be depending on the US right now for dairy, eggs or any food commodities. Apart from the political instability, there is an American shortage of eggs and they are paying a lot more than Canada presently and many stores are rationing.
There is great value in ensuring Canadian farmers can feed the nation and I don’t think it is wise for Canada to be completely dependent on other countries for our food supply. All farming and fishing in Canada is subsidized to some degree.
Bluntly, I don’t like your argument. You seem to be promoting “free market” pricing when it comes to farmers and their commodities, but I bet you’re not promoting “free market” when it comes to Nutrition North, which is the polar opposite of “free market”..
The subtext to your message being we can’t compete, even with ourselves. We are too fragile, the state must impose regulations that distort prices, and ensure quality always reverts to the mediocre. We really don’t foster much of an entrepreneurial spirit in this country. It’s sad and pathetic.
No subtext from me, I was quite clear.
These are your thoughts entirely!
“and ensure quality always reverts to the mediocre.”……. what are you talking about? Food quality in canada is extremely high and regulated.
Start your own thread….. don’t pretend your thoughts are mine.
Yes supply management may affect the prices of Dairy in Canada but it also help Farmers stay in business and I sure do not want American made dairy products in Canada. Also, I have noticed that in the parts of Nunavut were I have been, the prices for milk, eggs and butter are sometimes lower than the southern retailer prices. We are getting break with the Northern Food Subsidy program thank goodness.
Boycott American products and services. Don’t buy American wines or beer. Don’t support American business.
The connotation of “team Canada” seems a bit moot to me considering we don’t even have free trade between the provinces. Perhaps we could start there. Getting through this will require innovation and changing the paradigm. Let’s find new trade partners. Let’s grow more of our own food. A lower dollar will hurt (this will happen), but a lower dollar could mean greater export opportunities. The bully down South will not be placated. I’m hoping that this wakes us up and we become less reliant on our neighbour.
“is a huge potential that the tariffs
“… potential good that we rely on…”
“… there’s a huge potential that …”
Maybe there’s POTENTIAL
Om another note: USA putting tariffs on Canadian goods exported to the US will raise prices in the US! Go figure! Those tariffs won’t rsise prices on goods produced in Canada and sold in Canada; nor will it raise prices on US goods and imported to Canada
Is Ageeagok and his buddy Trudeau planning to raise prices in Canada just to prove how dumb their adherents really are? I thought covidmaina, climaticism and identity policy already proved that
The point of tarrifs is so the companies in the USA no longer purchase Canadian inputs for processing / manufacturing. The added cost drives them to purchase elsewhere.
The result is now Canada losses all those sales to the USA and unless there’s another buyer at the same rate that loss of sales is going to get passed along to current customers via an increase in price. Now it won’t be liner obviously, and companies can cut costs which means laying off workers typically but without a doubt it can and likely will translate to higher costs for us as companies try to recoup elsewhere.
The other area we could get hit is if those USA companies continue to purchase Canadian inputs dispite the tarrifs the end product costs more. Canada buys lots of those end products back from the USA since Canada is primarily resource and not manufactureing. So now we’re buying a more expensive product back which then gets sold to Canadian customers at a higher price.
We most certainty will see price increases one way or another.
Probably not worth it to try to explain economics to S, he thinks he’s the smartest person here and refuses to listen to logic.
Thanks for the little bit of Econ 001, Ynu.
After all the pluses and minuses, the net cost of US tariffs to Canadians will be nominal, if any
The bulk of our costs – and changing costs – in Canada are due to all-level government taxation, regulation, policy, fees, incompetence, bureaucracy, and OUR tariffs – all useless burdens.
Beyond that, finance costs (including interest and insurance) and oligopoly-induced pricing suck the rest of the money and life out of the average person, small-business owner and professional.
Thanks to President Trump, Trudeau and his government has been called out on his B.S and demanded Canada fixes it. Trudeau government is trying to refuse to fix it hence the tariffs being implemented. Had the federal government fix the problem, there wouldn’t be any tariffs implemented. I blame Trudeau and the liberal/ndp government for not fixing the problem.
Time to look at the big picture.
We are into a world of 3 tyrants – the USA, Russia, and China. India would like to be one, too. Maybe it will be.
For the rest, the options are limited. A country can become a vassel state, looted by a tyrant. Or it can try to be a neutral state.
As a neutral, you ensure that each tyrant gets what it really needs, while making it too costly for the tyrant to fully control you.
The neutral states will have to work together as never before, while the tyrants will try to discourage such cooperation.
Where does Nunavut fit in? Mostly, it has huge reserves of natural resources, but extracting them is very expensive. It also offers the future prospect of the northwest passage for shipping.
Trump would have said.. It shoulf hav3 never happened if Truedough head never been a prime minister of our country. Nobody would have been homeless. Never again should anyone like Truedough head a country. Us northern Inuit and our environment are the first to get all pollutents in our air and politicians mind games playing what the next strategy to take to survive the next wave of extremely high cost of living .
Let’s keep in mind that, decades ago, there was no NAFTA and no Free Trade. There were tariffs on both sides of the border on almost everything. Yet the Canadian economy did quite well in the 50’s and 60’s.
The difference now is that our economies, worldwide, are now inextricably interwoven to such an extent that the weaker partner (Canada) is at a huge disadvantage in a tariff war.
Remember when there were huge demonstrations in Canadian and US cities decrying the evils of “globalization”? Turns out they had a good point.