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

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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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Episode Transcript

Phil (00:00):
Higher prices, fewer jobs, and a trade war that could hit
Fernie hard.
Trump has just slapped 25% onCanadian steel and aluminum.
And Canada is fighting back withbillions of counter tariffs.
So what does this mean for you?
Let's get into it.
Welcome to the property mindsetpodcast, where we explore

(00:21):
everything real estate frommarket trends to practical
strategies for success.
Whether you're a buyer or selleror an inspiring investor, a
seasoned professional, or simplysomeone who loves real estate.
This podcast is for you.
Hey everyone, I'm Phil Gare.
Today we're diving into Trump'slatest tariffs on Canadian steel

(00:43):
and aluminium or aluminum,whichever side of the Atlantic
you're from.
Effective March 4th, 2025 on howthey're impacting Fernie.
From rising costs at the grocerystore to potential job losses in
key industries, these tradepolicies could create big
challenges for our localeconomy.
So what's happening?

(01:03):
The U.
S.
has reimposed a 25 percenttariff on Canadian steel and
aluminum, with no exceptions.
This isn't just a politicalmove, It's an economic hit that
will ripple through multipleindustries.
and with Canada firing back with155 billion in retaliatory
tariffs on U.
S.
goods, everything from food toindustrial supplies are about to

(01:26):
get expensive.
Supporters of these tariffs saythey protect domestic industries
by encouraging U.
S.
consumers to buy American.
They argue that this could boostthe U.
S.
manufacturing, bringingproduction back home.
The tariffs also generate extrarevenue for the U.
S.
government And are seen as a wayto reduce trade imbalances with

(01:47):
countries like Canada and ChinaIf American steel and aluminum
producers thrive The idea isthat jobs in those industries
will be preserved.
On the flip side, critics saytariffs don't just hurt the
targeted countries, they alsohit consumers with higher
prices.
last time tariffs like thesewere imposed, washing machines

(02:09):
in the US saw a 12 percent priceincrease, and we can expect
similar price hikes on vehicles,electronics, and even food.
There's also a concern thatthese tariffs contribute to
inflation, forcing central banksto rise interest rates.
And let's not forget theretaliation.
Canada is responding withtariffs on U.

(02:31):
S.
goods, which means businesses inFernie could see rising costs on
imported supplies and everydayessentials.
So let's talk about the impactright here in Fernie.
First, businesses that rely onsteel and aluminium, like
construction and resourceindustries, could see major cost
increases, leading to higherhome building prices and

(02:53):
infrastructure delays.
if past tariffs are anything togo by, we could see a 40 percent
drop in Canadian steel exportsand a 50 percent decline in
aluminium exports.
Exports to the US, which meansjob losses in these sectors
across BC.
On top of that, retaliatorytariffs on US goods could drive

(03:14):
up costs of everyday items likefood and household products.
hitting Fernie's smallbusinesses and consumers hard.
And let's not forget supplychain disruptions.
If industries that rely on theU.
S.
trade struggle, Fernie's localeconomy won't be far behind.
So what does this mean for thelong term?
If these tariffs stick around,Fernie's cost of living could

(03:37):
keep climbing, squeezinghousehold and businesses alike.
Inflation will make essentialsLike groceries, appliances, and
even vehicles more expensive.
And while a weaker loonie mightboost American tourism in
Fernie, that's not enough tooffset the economic risks.
The bigger concern, if thesetrade tensions continue, Canada

(04:00):
could be heading for a recessionby 2026.
With GDP growth possiblydropping to just 0.
4%, that's a serious slowdownthat could impact jobs and
investments across the province.
one local contractor I spoke tosaid if material costs keep
rising, we'll just have to keeppassing those on to our buyers,

(04:20):
making new construction evenless affordable.
a financial analysis warned thattariffs like these don't just
affect businesses, they impacteveryday Canadians who see
higher prices at the checkout.
So the bottom line, Fernie isn'timmune to global trade wars.
Rising prices, potential joblosses, and economic uncertainty

(04:44):
could put pressure on ourcommunity.
And while the BC and Canadiangovernment is pushing back,
there's going to be no quick fixto this solution.
So what do you think?
Are tariffs going to hurt ushere in Fernie?
do you see opportunities in theshifting market?
Drop a comment below.
And if you want to stay informedon the real estate and economic
trends affecting Fernie, makesure you like subscribe and

(05:06):
check out my other videos onliving in Fernie on our YouTube
channel.
So until next time, I'm PhilGadd.
Stay focused, stay informed andkeep building that property
mindset.