The year 2025 proved to be a defining period for Alberta's economy, marked by seismic shifts in trade policy and a historic realignment of energy strategy. Two dominant narratives—the fallout from aggressive U.S. tariffs and the forging of a groundbreaking federal-provincial energy agreement—set the tone for a year of high-stakes corporate drama and economic challenge.
A Year of Turmoil and Transformation
According to analysis by the Calgary Herald, the business landscape was fundamentally shaped by the intertwined forces of external pressure and internal negotiation. The imposition of U.S. tariffs following the 2024 presidential election created immediate uncertainty, freezing investment and hiring while sparking a national 'Buy Canada' movement. This trade turmoil, however, acted as a catalyst for a significant domestic development: a "tectonic" energy memorandum of understanding (MOU) between the Alberta and Canadian governments.
Adam Legge, President of the Business Council of Alberta, noted the tariffs' profound impact, stating they "set the wheels in motion for so much more" and "galvanized the country." Meanwhile, Calgary Chamber of Commerce CEO Deborah Yedlin highlighted the potential of the new federal-provincial MOU, suggesting it "sets the stage for potentially a new boom in the energy sector."
Key Stories That Shaped the Province
Beyond the headlines of tariffs and treaties, Alberta's business community navigated a series of major events throughout 2025. The year featured a high-stakes takeover battle for oil sands producer MEG Energy, drawing intense scrutiny from investors and industry analysts alike. In transportation, WestJet advanced plans to solidify a growing aviation hub in southern Alberta, signaling long-term confidence in the region's connectivity.
The province's fiscal health faced a direct hit from slumping global oil prices, which triggered a large provincial budget deficit. On a more positive note, the year also witnessed the launch of Canada's nascent liquefied natural gas (LNG) industry, a milestone with significant implications for Alberta's energy exports.
The Tariff Trigger and Its Aftermath
The business climate shifted rapidly after the November 2024 U.S. election. With 89 per cent of Alberta's exports destined for the United States, the threat of new trade barriers loomed large. A February 2025 report by the Canadian Chamber of Commerce identified Calgary as the country's second-most vulnerable city to American tariffs.
Preemptive diplomacy saw then-Prime Minister Justin Trudeau and Alberta Premier Danielle Smith make separate visits to Florida to meet with President-elect Donald Trump. Despite these efforts, relations deteriorated post-inauguration, with Trump initially floating 25 per cent tariffs on Canadian goods, later proposing a reduced rate of 10 per cent specifically for energy products. This period of uncertainty and rhetoric redefined the critical energy relationship between Alberta and Ottawa, forcing a strategic pivot.
The collective weight of these events—from geopolitical trade shocks to landmark domestic agreements and corporate showdowns—cemented 2025 as a year of profound challenge and strategic recalibration for Alberta's economy. The decisions made and deals struck during this tumultuous period are likely to influence the province's business trajectory for years to come.
