{"id":196551,"date":"2026-09-04T22:04:09","date_gmt":"2026-09-04T22:04:09","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/196551\/"},"modified":"2026-09-04T22:04:09","modified_gmt":"2026-09-04T22:04:09","slug":"trumps-tariff-war-with-canada-adds-uncertainty-for-alaska-businesses-already-grappling-with-higher-prices","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/196551\/","title":{"rendered":"Trump\u2019s tariff war with Canada adds uncertainty for Alaska businesses already grappling with higher prices"},"content":{"rendered":"<p><img decoding=\"async\" data-chromatic=\"ignore\" alt=\"\" class=\"c-image\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/09\/IHEFBU5XTNAGVKROO7WSRDSCFE.jpg\"  width=\"800\" height=\"533\"\/>Road signs near the United States-Canada border in Alaska in 2015. (Loren Holmes \/ ADN archive) <\/p>\n<p class=\"c-paragraph sans-serif\">Alaska business owners have already been stung by higher prices from President Donald Trump\u2019s global trade war. <\/p>\n<p class=\"c-paragraph sans-serif\">Now they\u2019re facing more uncertainty and potentially higher costs, with the U.S and Canada engaged in another trade conflict that includes 50% tariffs on several products traded between the countries. <\/p>\n<p class=\"c-paragraph sans-serif\">An Alaska trade observer said this week that Alaska businesses are especially vulnerable, since Canada is one of Alaska\u2019s <a href=\"https:\/\/ustr.gov\/map\/state-benefits\/ak\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/ustr.gov\/map\/state-benefits\/ak\">top trading partners<\/a>. The state <a href=\"https:\/\/canada-in-usa.com\/state\/alaska\/\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/canada-in-usa.com\/state\/alaska\/\">imports more than $1 billion in goods annually<\/a> and exports more than $600 million to the country. <\/p>\n<p class=\"c-paragraph sans-serif\">The United States\u2019 latest 50% tariff on Canadian goods is \u201cabsolutely crazy,\u201d said Don Bruno, who owns the Play It Again Sports stores in Spenard and Wasilla. <\/p>\n<p class=\"c-paragraph sans-serif\">\u201cFifty percent is a lot. It\u2019s not something that I can pass on to my customers,\u201d he said. <\/p>\n<p class=\"c-paragraph sans-serif\">The additional tariff rate pushes every dollar he planned to spend on a Canadian product to $1.50. <\/p>\n<p class=\"c-paragraph sans-serif\">He recently decided not to buy hockey pucks from a Canadian manufacturer that he\u2019s used in the past. Instead, he\u2019ll look to buy them from other countries. <\/p>\n<p class=\"c-paragraph sans-serif\">He said the sporting goods store has already been dealing with higher costs from tariffs over the last year and a half. <\/p>\n<p class=\"c-paragraph sans-serif\">\u201cThe tariffs are hitting us,\u201d he said. \u201cI mean, it\u2019s from hockey jerseys to everything.\u201d <\/p>\n<p class=\"c-paragraph sans-serif\">\u201cPrices are going up, and I eat them when I can, but there\u2019s times that you have to raise prices,\u201d he said. <\/p>\n<p><img decoding=\"async\" data-chromatic=\"ignore\" alt=\"\" class=\"c-image\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/09\/SG4JXL5SXJGWVPV3JYQ64XQRDA.jpg\"  width=\"800\" height=\"533\"\/>Sam Skolnick stocks ski boots in October 2021 at Play It Again Sports in Anchorage. (Loren Holmes \/ ADN archive) <\/p>\n<p class=\"c-paragraph sans-serif\">Trump\u2019s trade fight with Canada could be especially challenging in Alaska, with the two sides sharing 1,500 border miles and positive economic ties, said Greg Wolf, head of the <a href=\"https:\/\/akibc.org\/\" target=\"_blank\" rel=\"noreferrer nofollow noopener\" title=\"https:\/\/akibc.org\/\">Alaska International Business Center<\/a>.<\/p>\n<p class=\"c-paragraph sans-serif\">\u201cThe relationship is one of mutual benefit, and it\u2019s sort of difficult to watch this trade war unfold,\u201d he said. <\/p>\n<p class=\"c-paragraph sans-serif\">Last month, Trump imposed 50% tariffs on a <a href=\"https:\/\/www.chicagofed.org\/publications\/chicago-fed-insights\/2026\/us-tariffs-canadian-imports\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/www.chicagofed.org\/publications\/chicago-fed-insights\/2026\/us-tariffs-canadian-imports\">range of Canadian imports<\/a>, including alcoholic beverages, building materials and dairy products. He argues that Canada employs discriminatory trade practices that favor other countries\u2019 products. <\/p>\n<p class=\"c-paragraph sans-serif\">Those new tariffs, on around $20 billion of Canadian items, come atop the president\u2019s 10% base rate on Canada and other countries, Wolf said.<\/p>\n<p class=\"c-paragraph sans-serif\">That 10% rate itself is lower than the U.S.\u2019s 28% average tariff rate peak <a href=\"https:\/\/budgetlab.yale.edu\/research\/state-us-tariffs-october-17-2025\" target=\"_blank\" rel=\"nofollow noopener\">reached<\/a> last year under Trump. The lower base rate comes after the U.S. Supreme Court <a href=\"https:\/\/www.adn.com\/nation-world\/2026\/02\/20\/supreme-court-strikes-down-trumps-sweeping-emergency-tariffs\/\" target=\"_blank\" rel=\"nofollow noopener\">ruled earlier this year <\/a>that the president\u2019s previous justification for his global trade war, the emergency powers law, was unconstitutional.<\/p>\n<p class=\"c-paragraph sans-serif\">Trump has claimed that his tariffs are paid by foreign countries. In fact, they\u2019re paid by U.S. businesses that import products and ultimately the consumers, Wolf said. <\/p>\n<p class=\"c-paragraph sans-serif\">\u201cIt\u2019s basically a national sales tax on the American people,\u201d he said. <\/p>\n<p class=\"c-paragraph sans-serif\">The tariffs are <a href=\"https:\/\/www.frbsf.org\/research-and-insights\/publications\/economic-letter\/2026\/03\/effects-of-tariffs-on-components-of-inflation\/\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/www.frbsf.org\/research-and-insights\/publications\/economic-letter\/2026\/03\/effects-of-tariffs-on-components-of-inflation\/\">a factor <\/a>in the U.S.\u2019s high inflation rate that has the personal consumption index at 3.7%, <a href=\"https:\/\/www.adn.com\/business-economy\/2026\/08\/05\/federal-reserves-lisa-cook-tells-anchorage-business-crowd-shes-firmly-committed-to-bringing-down-inflation\/\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/www.adn.com\/business-economy\/2026\/08\/05\/federal-reserves-lisa-cook-tells-anchorage-business-crowd-shes-firmly-committed-to-bringing-down-inflation\/\">nearly double<\/a> the Federal Reserve Bank\u2019s <a href=\"https:\/\/www.federalreserve.gov\/economy-at-a-glance-inflation-pce.htm\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/www.federalreserve.gov\/economy-at-a-glance-inflation-pce.htm\">2% long-term target. <\/a><\/p>\n<p class=\"c-paragraph sans-serif\">Canada last month fired back against Trump, and said it\u2019s slapping retaliatory tariffs of up to 50% on a <a href=\"https:\/\/www.canada.ca\/en\/department-finance\/news\/2026\/08\/list-of-products-from-the-united-states-subject-to-counter-tariffs-effective-september-8-2026.html#wb-auto-4\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/www.canada.ca\/en\/department-finance\/news\/2026\/08\/list-of-products-from-the-united-states-subject-to-counter-tariffs-effective-september-8-2026.html#wb-auto-4\">long list<\/a> of U.S. products. Those tariffs start Tuesday, and include dairy and manufactured products made with steel and aluminum. <\/p>\n<p class=\"c-paragraph sans-serif\">Canada\u2019s tariffs could also hurt Alaska and U.S. companies that export products into Canada, making their items more expensive compared to those from other countries, Wolf said.<\/p>\n<p class=\"c-paragraph sans-serif\">Trump has argued that his tariffs encourage American companies to manufacture their goods in the U.S. and create jobs. But Wolf said it\u2019s unknown whether the tariff policy \u201cis a net positive or a net negative for the United States.\u201d<\/p>\n<p class=\"c-paragraph sans-serif\">\u201dThis is all unchartered territory,&#8221; he said. <\/p>\n<p class=\"c-paragraph sans-serif\">One area to watch in Alaska is the cost of building materials for home and building construction, he said.<\/p>\n<p class=\"c-paragraph sans-serif\">\u201cA lot of the construction materials that are used in Alaska come directly from Canada,\u201d Wolf said. <\/p>\n<p><img decoding=\"async\" data-chromatic=\"ignore\" alt=\"\" class=\"c-image\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/09\/OONTJ3HVVZBRPDSHJK3MJMYEUU.JPG\"  width=\"800\" height=\"533\"\/>Sean McLaughlin, an owner of Alaska Gear Company, looks at bunny boots that the company was set to distribute to testers. Photographed in 2024. (Marc Lester \/ ADN archive) <\/p>\n<p class=\"c-paragraph sans-serif\">Alaska Gear Company, which manufactures items such as airplane gear and cold-weather bunny boots, has already been <a href=\"https:\/\/www.adn.com\/business-economy\/2025\/11\/28\/as-holiday-shopping-starts-alaska-retailers-of-bunny-boots-musical-instruments-and-more-get-creative-to-deal-with-economic-headwinds\/\" target=\"_blank\" rel=\"nofollow noopener\" title=\"https:\/\/www.adn.com\/business-economy\/2025\/11\/28\/as-holiday-shopping-starts-alaska-retailers-of-bunny-boots-musical-instruments-and-more-get-creative-to-deal-with-economic-headwinds\/\">caught<\/a> in the crossfire of Trump\u2019s earlier trade war with Canada in 2025. <\/p>\n<p class=\"c-paragraph sans-serif\">\u201cCanada is a very important market for us. We just say, \u2018Don\u2019t blame us. We like you,\u2019 \u201d the company\u2019s chief executive, Sean McLaughlin, said in a text message this week. <\/p>\n<p class=\"c-paragraph sans-serif\">McLaughlin said it\u2019s virtually pointless to look and see what specific items are impacted this time. The tariffs are a \u201cmoving target\u201d that create uncertainty for business owners for no reason, while the tariffs \u201ccould and will all change again,\u201d he said. <\/p>\n<p class=\"c-paragraph sans-serif\">\u201cWhole thing is a waste of time and energy,\u201d he said.<\/p>\n<p class=\"c-paragraph sans-serif\">Janet Gregory, owner of Over the Rainbow Toys in South Anchorage, said she\u2019s also not looking to see the specific impacts. <\/p>\n<p><img decoding=\"async\" data-chromatic=\"ignore\" alt=\"\" class=\"c-image\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/09\/QJAXENOOAFAJ3IAAJVNOO2GP3U.JPG\"  width=\"800\" height=\"533\"\/>Over The Rainbow Toys owner Janet Gregory photographed in her South Anchorage store on Jan. 8, 2026. (Bill Roth \/ ADN archive) <\/p>\n<p class=\"c-paragraph sans-serif\">There are too many variables about what products might be affected, and whether Trump\u2019s latest round of tariffs will pass legal muster this time. <\/p>\n<p class=\"c-paragraph sans-serif\">\u201cIf my vendors pass on costs, then they\u2019ll pass on the costs,\u201d she said. \u201cI haven\u2019t heard anything specific from any vendors planning to do that. But I mean, there are a lot of moving parts.\u201d <\/p>\n<p class=\"c-paragraph sans-serif\">When prices rise because of the tariffs, Gregory tries to absorb part of the cost herself.<\/p>\n<p class=\"c-paragraph sans-serif\">But she raises prices when she thinks it\u2019s within customer budgets. <\/p>\n<p class=\"c-paragraph sans-serif\">\u201cI just figure it\u2019s going to be what it\u2019s going to be, and there\u2019s not much I can do about it,\u201d she said. <\/p>\n","protected":false},"excerpt":{"rendered":"Road signs near the United States-Canada border in Alaska in 2015. (Loren Holmes \/ ADN archive) Alaska business&hellip;\n","protected":false},"author":2,"featured_media":196552,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[61529,61530,17,248],"class_list":["post-196551","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-alaska-highway","tag-alcan","tag-canada","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/196551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=196551"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/196551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/196552"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=196551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=196551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=196551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}