How Trump’s Trade War Impacts Fernie’s Economy & Real Estate

Trump’s Tariffs & Fernie’s Economy – What You Need to Know

A 25% tariff on Canadian steel and aluminum just hit, and Canada is fighting back with $155 billion in retaliatory tariffs. But how does this trade war impact Fernie’s economy, real estate market, and cost of living?

In this episode of The Property Mindset Podcast, Phil Gadd breaks down:
✅ Rising home construction costs & infrastructure delays 🚧
✅ Inflation impact on groceries, vehicles & household goods 🏠
✅ Job risks in construction, resource, and tourism sectors 💼
✅ What this means for Fernie’s real estate market 📊

With Fernie’s cost of living already climbing, these economic shifts could change buying and selling strategies in 2025. Whether you're a homeowner, investor, or business owner, understanding how these tariffs affect Fernie’s property values is critical.

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Show Sponsor: First Tracks Real Estate Group - eXp Luxury

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Transcript

Phil: 0:00

Higher prices, fewer jobs, and a trade war that could hit Fernie hard. Trump has just slapped 25% on Canadian steel and aluminum. And Canada is fighting back with billions of counter tariffs. So what does this mean for you? Let's get into it.

0:17

Welcome to the property mindset podcast, where we explore everything real estate from market trends to practical strategies for success. Whether you're a buyer or seller or an inspiring investor, a seasoned professional, or simply someone who loves real estate. This podcast is for you.

Phil: 0:36

Hey everyone, I'm Phil Gare. Today we're diving into Trump's latest tariffs on Canadian steel and aluminium or aluminum, whichever side of the Atlantic you're from. Effective March 4th, 2025 on how they're impacting Fernie. From rising costs at the grocery store to potential job losses in key industries, these trade policies could create big challenges for our local economy. So what's happening? The U. S. has reimposed a 25 percent tariff on Canadian steel and aluminum, with no exceptions. This isn't just a political move, It's an economic hit that will ripple through multiple industries. and with Canada firing back with 155 billion in retaliatory tariffs on U. S. goods, everything from food to industrial supplies are about to get expensive. Supporters of these tariffs say they protect domestic industries by encouraging U. S. consumers to buy American. They argue that this could boost the U. S. manufacturing, bringing production back home. The tariffs also generate extra revenue for the U. S. government And are seen as a way to reduce trade imbalances with countries like Canada and China If American steel and aluminum producers thrive The idea is that jobs in those industries will be preserved. On the flip side, critics say tariffs don't just hurt the targeted countries, they also hit consumers with higher prices. last time tariffs like these were imposed, washing machines in the US saw a 12 percent price increase, and we can expect similar price hikes on vehicles, electronics, and even food. There's also a concern that these tariffs contribute to inflation, forcing central banks to rise interest rates. And let's not forget the retaliation. Canada is responding with tariffs on U. S. goods, which means businesses in Fernie could see rising costs on imported supplies and everyday essentials. So let's talk about the impact right here in Fernie. First, businesses that rely on steel and aluminium, like construction and resource industries, could see major cost increases, leading to higher home building prices and infrastructure delays. if past tariffs are anything to go by, we could see a 40 percent drop in Canadian steel exports and a 50 percent decline in aluminium exports. Exports to the US, which means job losses in these sectors across BC. On top of that, retaliatory tariffs on US goods could drive up costs of everyday items like food and household products. hitting Fernie's small businesses and consumers hard. And let's not forget supply chain disruptions. If industries that rely on the U. S. trade struggle, Fernie's local economy won't be far behind. So what does this mean for the long term? If these tariffs stick around, Fernie's cost of living could keep climbing, squeezing household and businesses alike. Inflation will make essentials Like groceries, appliances, and even vehicles more expensive. And while a weaker loonie might boost American tourism in Fernie, that's not enough to offset the economic risks. The bigger concern, if these trade tensions continue, Canada could be heading for a recession by 2026. With GDP growth possibly dropping to just 0. 4%, that's a serious slowdown that could impact jobs and investments across the province. one local contractor I spoke to said if material costs keep rising, we'll just have to keep passing those on to our buyers, making new construction even less affordable. a financial analysis warned that tariffs like these don't just affect businesses, they impact everyday Canadians who see higher prices at the checkout. So the bottom line, Fernie isn't immune to global trade wars. Rising prices, potential job losses, and economic uncertainty could put pressure on our community. And while the BC and Canadian government is pushing back, there's going to be no quick fix to this solution. So what do you think? Are tariffs going to hurt us here in Fernie? do you see opportunities in the shifting market? Drop a comment below. And if you want to stay informed on the real estate and economic trends affecting Fernie, make sure you like subscribe and check out my other videos on living in Fernie on our YouTube channel. So until next time, I'm Phil Gadd. Stay focused, stay informed and keep building that property mindset.