Edmonton charities caught up in Canada-U.S. tariff war brace for impacts on clients

As the trade war between Canada and the United States drags on, Edmonton charities and other organizations that work with vulnerable clients are worrying about trickle-down impacts on people in need.

Tamisan Bencz-Knight, manager of strategic relationships and partnerships with Edmonton's Food Bank, said the organization is bracing for effects of the tariff war.

"We are looking at other avenues, talking to all of our distributors and suppliers, saying, 'Where can we get the Canadian products so that we're not hit with extra tariffs?'" Bencz-Knight said in an interview.

"With the uncertainty with the tariffs and how things are playing out, we're just kind of trying to pivot and be as flexible as possible."

While the food bank has budgeted $4 million for food purchases this year, Bencz-Knight said costs are expected to jump up to $6 million.

On top of that, an additional worry is a delivery truck that is being built in the U.S.

"The five-ton [truck] is about $300,000 Canadian and we're anticipating it could be an added $50,000 with tariffs," Bencz-Knight said, adding that could leave less money for the organization to buy the food it needs.

All this comes at a time where need in Edmonton, like many cities across Canada, is growing.

Last year, the food bank's hamper program served an average of 41,600 people a month. Right now, the organization is providing hampers to 47,000 people each month.

Construction costs up

Lumber and other materials for houses could be affected by the trade tensions, and Habitat for Humanity Edmonton is preparing contingency plans.

Board vice-chair Andy England said building costs could jump six per cent, which works out to roughly $10,000 to $15,000 per home.

"We know that building costs are going to go up, which means the cost to build homes … [is] going to increase, as well as the renovation costs associated with our existing homes, which means we'll be likely providing fewer affordable homes in the future," England said.

Several projects are currently underway, including three townhouse-style homes in Sherwood Park.

While England said existing projects won't be affected, he said there could be challenges with future builds, adding the group typically builds up to 10 new homes a year in the Edmonton area.

That may lead to delays for future homeowners looking to get their footing, he said.

"Faced with increasing costs, we're going to have to cut that back, which means providing fewer affordable homes, which means individuals will not be able to start their life, build their financial future," he said.

"It may not be a case of not being able to get a home ever. It may be a case of not being able to get a home today…We expect it's going to be more of a longer waiting list than they may perhaps have wanted initially."

Effect on services

Hope Mission, an organization that works with homeless people, is also grappling with the possible consequences of the trade war, such as impacts on grocery purchases and the construction of a new shelter in Wetaskiwin, 70 kilometres south of Edmonton.

Tim Pasma, director of programs, said there are questions about the organization's buying power because of economic uncertainty.

"What is that going to cost? Is it going to cost us an extra 10 or 20 per cent above what we thought? Are we able to manage that cost or not? Those are all things that we're sort of dealing with right now," he said.

He said that could ultimately affect those who depend on the organization, he said.

"There can be impacts on the level of service or the quality of service that we're able to provide to people depending on the need and the cost," he said. "Global events have a local impact and that's something that's reality in the work that we do."