Provinces, Ottawa roll out various measures in response to US tariffs

Measures include labour market support program, automatic recognition of certifications from other provinces

Provinces, Ottawa roll out various measures in response to US tariffs

In response to the Trump administration’s 25% tariff on Canadian goods and 10% tariff on Canadian energy exports, Prime Minister Justin Trudeau has announced swift retaliatory measures.

The Canadian government is imposing 25% tariffs against $155 billion of American goods – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days’ time, said the Canadian leader.

“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” said Trudeau. “While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.”

Trudeau acknowledged the economic challenges these tariffs will create for Canadians but insisted the measures are necessary.

“Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs. Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term.”

He also dismissed any excuse for the U.S. tariffs, stating: “Let me be unequivocally clear – there is no justification for these actions.”

With Trump pushing through with the implementation of the tariffs on Canada, the Canadian unemployment rate could surge, according to James Orlando, director of economics at TD Bank.

New Brunswick responds to U.S. tariffs

Canadian provinces have also vowed to take retaliatory actions.

New Brunswick Premier Susan Holt unveiled a comprehensive support package and action plan to mitigate the effects of the U.S. tariffs on the province’s economy.

"These tariffs will have devastating consequences for New Brunswick’s workers, businesses, communities, and economy, and it is critical that we are there to support New Brunswickers through this challenge," Holt stated. "Now is the time for us to collaborate like never before with our Canadian counterparts – and to protect our beloved New Brunswick and Canada."

The four-pillar response plan includes:

  1. Support for impacted workers:
    • A flexible labour market support program delivered through Working NB and the Department of Post-Secondary Education, Training and Labour to assist those affected.
    • A contingency fund through the Regional Development Corporation to provide support for impacted communities.
  2. Relief for New Brunswick businesses:
    • Working capital loans of up to $5 million to help businesses maintain operations.
    • A $40 million competitiveness and growth program to support large export-dependent companies.
    • $4 million to support the New Brunswick Fisheries Fund.
    • Opportunities NB will leverage its $30 million strategic assistance budget to help businesses with contingency planning, market diversification, and productivity improvements.
  3. Breaking down interprovincial trade barriers:
    • Streamlining labour mobility by automatically recognizing certified workers from other provinces for at least 120 days.
    • Reducing barriers under the Canadian Free Trade Agreement, including removing nine restrictions, narrowing one, and reviewing six others.
    • Expanding direct-to-consumer alcohol sales and eliminating personal exemption limits for alcohol purchases across provinces.
  4. Promotion of the "NB Made" campaign:
    • A campaign to promote locally made products, supporting initiatives such as Savour NB, Excellence NB, Eat Local NB, and Buy Local for Good.

Nova Scotia announces countermeasures

Nova Scotia Premier Tim Houston announced a series of immediate countermeasures, including:

  • Restricting access to provincial procurement for American businesses, preventing them from bidding on provincial contracts.
  • Doubling commercial vehicle tolls for U.S. trucks crossing the Cobequid Pass, effective immediately.
  • Directing the Nova Scotia Liquor Corporation (NSLC) to remove all U.S. alcohol products from store shelves, a measure that had proven effective in previous trade disputes.

"We are also actively seeking options to cancel existing contracts and reject bids outright until President Trump removes his unlawful tariffs," Houston stated.

He further pledged provincial support for businesses and workers impacted by the tariffs.

Previously, Nova Scotia introduced the Free Trade and Mobility within Canada Act which, the provincial government says, will help remove barriers to trade and investment between the province and other Canadian provinces and territories that reciprocate.

B.C. touts task force

B.C. says it remains focused on growing a strong economy with diverse trade partners to create good jobs and wealth across the province.

That includes:

  • Strengthening the economy by accelerating major projects to create good-paying, family-supporting jobs.  
  • Knocking down trade barriers within Canada to make it easier to buy and sell goods in other provinces.       
  • Diversifying trade by finding new markets for B.C. goods so we’re less reliant on the U.S. on the U.S.

The province also has several groups working on responses to the US tariffs:         

  • Trade and Economic Security Task Force – People from the business community, industry, labour and First Nations are working together to bring in short- and long-term measures to grow B.C.’s economy and protect jobs, families and businesses.     
  • B.C. Softwood Lumber Advisory Council – Leaders from the forestry sector, labour, experts on U.S. relations and government officials are developing a diplomatic and trade strategy and measures to fight for B.C.’s interests in the ongoing softwood lumber dispute.      
  • Premier’s task force on agriculture and food economy – Brings together leaders from the agriculture, processing, seafood and retail sectors to ensure B.C.’s food supply and food economy continue to grow in the face of tariffs.
  • Cabinet Committee – Ministers are coordinating actions across government to ensure B.C.’s response to the tariff threats is fast, tough and fully focused on British Columbians, while strengthening, growing and diversifying our economy for the long-term.

Unifor calls for coordinated response to US tariffs

Unifor has called for all levels of government and industry to step up and coordinate a response to the continued tariff threats on targeted Canadian industries including auto, steel and aluminum, wood products, copper and others.

"These tariffs will hurt working people with higher prices for everyday goods, destroy jobs on both sides of the border and have devastating consequences for highly integrated manufacturing sectors, including auto, across Canada and the U.S.," said Unifor National President Lana Payne.

"Today our trade relationship forever changed with the U.S. and now we must invest in ourselves, redefine international trade relationships, and build a new, more resilient economy."