Canadian employers are scrambling to assess the fallout after U.S. President Donald Trump imposed 25 per cent tariffs on Canadian exports and 10 per cent on Canadian energy overnight, triggering an immediate response from Ottawa and the provinces.
Prime Minister Justin Trudeau said in a statement Monday night that Canada would retaliate with its own 25 per cent tariffs on US$155 billion worth of American goods if Washington proceeds with what he called “unjustified” trade measures.
“Canada will not let this unjustified decision go unanswered,” Trudeau said. “Our tariffs will remain in place until the U.S. trade action is withdrawn.”
Provincial, labour reactions
Nova Scotia Premier Tim Houston said Tuesday his province would bar American companies from bidding on provincial procurement, cancel existing contracts “where possible,” and double commercial tolls on the Cobequid Pass for U.S. trucks. Nova Scotia will also remove American alcohol from provincial liquor store shelves.
“We know tariffs are bad for people and businesses on both sides of the border,” Houston said. “Some people need to touch the hot stove to learn, and while we cannot control or predict their behaviour, we can control how we respond.”
Unifor National President Lana Payne said the tariffs “will hurt working people with higher prices for everyday goods” and warned of job losses across North America. The union is calling on all levels of government to coordinate a robust response.
“We must invest in ourselves, redefine international trade relationships, and build a new, more resilient economy,” Payne said.
Newfoundland and Labrador Premier Andrew Furey urged residents to “support local and Canadian-made products” while announcing his province would also remove U.S. products from liquor store shelves and pause any new procurement from American companies. “Our identity, our values and our sovereignty will give us the strength to stand against any bully,” Furey said.
KPMG survey results
A newly released KPMG in Canada survey suggests that while 67 per cent of Canadian business leaders can handle a trade war lasting longer than a year, half are already reducing production or laying off workers in anticipation of tariffs. Eighty-four per cent said interprovincial barriers must be eliminated quickly to help companies shift sales within Canada, and nearly nine in 10 want stronger political action to open domestic trade.
“It’s imperative that companies future-proof their operations,” said Tammy Brown, KPMG’s national industrial markets leader, in a statement. “We are working with our clients to develop scenario plans … to react quickly and effectively as the landscape changes.”
Trudeau said Canadians would also see higher prices on both sides of the border and warned American tariffs could undermine thousands of jobs. Still, he emphasized that Canada remains open to removing its countermeasures if the U.S. withdraws the new levies.
