The premiers of Nova Scotia, Prince Edward Island, and the Northwest Territories and the presidents of the Canadian Federation of Independent Business (CFIB), the Canadian Chamber of Commerce, and the Ontario Chamber of Commerce (OCC) have reacted to the recent suspension of the Canada-US trade discussions and the new US tariffs on Canadian goods.
“Canada’s negotiating team tried to secure a deal for Canadians, which I’ve forcefully and vocally supported,” said Tim Houston, Nova Scotia’s premier.
“Canada went to the table looking for a fair deal,” added Rob Lantz, Prince Edward Island premier. “But there are some things we should never be willing to trade away simply for the sake of reaching an agreement.”
According to R.J. Simpson, premier of the Northwest Territories, “the Prime Minister was right to hold the line for a fair agreement rather than accept a deal at any cost.”
New US tariffs
“After weeks of negotiations and real progress toward an agreement, it is deeply disappointing that the United States has chosen to move ahead with new tariffs,” Simpson said.
“The new list of new Canadian exports subject to a 50% tariff includes 18 pages of products that are right at the centre of what small businesses sell,” explained Dan Kelly, president of the Canadian Federation of Independent Business (CFIB). “A full 40% of small Canadian exporters will be directly hit by these tariffs and nearly one-third expect their revenues will drop by 50% or more as a result.”
“These are unjustified tariffs being imposed by the United States, and the unfortunate reality is they will have real and direct impacts on businesses, workers and families here in Prince Edward Island and across Canada,” Lantz said.
“Trump’s new tariffs—yet another violation of CUSMA—will cause great pain for some important Ontario businesses, which deserve support now,” said Daniel Tisch, president and CEO of the Ontario Chamber of Commerce (OCC).
Canada’s response
“The Northwest Territories stands with the Prime Minister and with Team Canada,” Simpson said. “We support a strong, coordinated response to defend Canadian interests and support the workers, businesses and industries most affected.”
“The Ontario Chamber of Commerce supports the federal and provincial governments’ judgment that the price to pay last night was simply too steep,” Tisch added.
Candace Laing, president and CEO of the Canadian Chamber of Commerce and member of the prime minister’s Advisory Committee on Canada-US Economic Relations, expressed a general objection to tariffs, which ultimately affect businesses and households.
“But if Canada responds, it should do so with a strong hand — surgically, strategically and in close consultation with business,” Laing clarified. “We should be careful not to inflict more economic damage on ourselves in the process.”
Kelly emphasized the impacts of retaliatory tariffs on small businesses.
“While 20% of small firms export, over 50% import from the U.S.,” Kelly said. “The burden of retaliatory tariffs ultimately affects consumers, but first to be hit are the small firms that import. Earlier rounds of Canadian retaliatory tariffs had a major negative impact on many small businesses.”
Resuming Canada-US negotiations
“We are optimistic that Canada and the United States will be back at the table in due time,” Laing said. “We have faith in our negotiating team and need to give them the trust and space to bring about the right deal.”
“More than anything, small firms are counting on government to resume negotiations as early as possible and ensure the impact on Canadian entrepreneurs is minimized in the interim,” Kelly said.
Commitments of government, group leaders
“Here at home, our job now is to stand with Island workers, businesses and families, and make sure our province is ready for what comes next,” Lantz said in a statement. “Our government is immediately convening Cabinet and the Cabinet Committee on Trade Relations to assess what these latest U.S. trade actions mean for Prince Edward Island.”
“This reality must make us more determined than ever to make Nova Scotia and Canada stronger,” Houston said in a statement. “For Nova Scotia that means developing our own energy, developing our own natural resources and finding new markets for Nova Scotian goods and services.”
“The North is ready to build,” Simpson said in a statement. “We will keep working with Canada, Indigenous governments and other partners to grow our economy, create opportunities for Northerners, strengthen our sovereignty and help build a stronger Canada.”
“As Canada’s largest business association, we will be mobilizing our network of businesses in all regions and all sectors to brace for impact and make the best of a bad situation,” Laing said.
“The Ontario Chamber will continue to work with our U.S. business partners, who like us seek fewer barriers to trade, not more,” Tisch said. “We believe that in time their government will be forced to heed their advocacy as costs rise and jobs vanish.”
“As we did during the pandemic, CFIB stands ready to work with government on ways to offer relief that delivers, including important tax relief for small firms,” Kelly said in a statement.
Next steps for Canada
According to Laing, “we need to get back to the work we control: opening our internal market, diversifying trade and making our economy more competitive and resilient.”
“Here in Canada, the First Ministers must redouble efforts to build our own economy, eliminate all interprovincial trade barriers, aggressively help businesses diversify their trade, and make Canada a highly attractive place for businesses to invest in themselves,” Tisch said in a statement.
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