As Donald Trump prepares to reshape the US-Canada trade relationship, Canada’s provincial governments are torn between appeasement and retaliation, leaving the country on edge.
Canada’s Provincial Leaders in Disarray Over Response to Trump Tariff Threats
The Canadian provinces are sharply divided over how to prepare for US trade tariffs, less than a week before Donald Trump takes office with a threat to dramatically reshape the relationship between the two countries. Canadian officials have sought to defuse the crisis with personal appeals to the president-elect, multimillion-dollar advertising sprees, and targeted threats, but the country remains gripped by uncertainty over how Trump’s tariffs might take effect.
A Divided Approach
Canadian officials have been seeking a unified approach to address the potential tariffs. However, the provinces have taken matters into their own hands, with each premier adopting a different strategy. Alberta’s Premier Danielle Smith has met with Trump and received no assurances that his team intended to back down on the threat to impose a 25% tariff on all Canadian goods.
Smith had hoped to secure “carve-outs” for Canadian oil, which exports 3.5 million barrels of oil to the US each day. In contrast, Ontario’s Premier Doug Ford has mused about cutting off electricity exports to the US or targeting American liquor, warning that the United States will “feel pain” if it follows through with tariffs.
Retaliation and Consequences
The premiers’ differing approaches have raised concerns about retaliation and its potential consequences. Saskatchewan’s Premier Scott Moe has voiced support for Smith’s position, echoing the claim that retaliatory tariffs would inflict domestic harm. Ford, however, believes a strong response from the provinces is necessary to protect Ontario jobs.
Ford warned job losses could reach 500,000 if the tariffs are implemented, underscoring the nature of Ontario’s manufacturing supply chains. The dispute appears to undercut the united “Team Canada” approach that the country’s leaders have sought and is likely to cause friction when the premiers meet on Wednesday.
A Call for Unity
The New Democratic Party leader Jagmeet Singh has called for Canada to block exports of critical minerals, including lithium and potash, to deter the United States from imposing tariffs. Conservative former Prime Minister Stephen Harper has also weighed into the issue, telling an American podcast host that Trump’s rhetoric was not the words of a “friend, a partner and an ally.”
The US president-elect has fixated on what he sees as a trade deficit with Canada, suggesting that the country sell roughly C$100bn (US$70bn) more annually to the US. Harper said Canada sells oil to the United States at a discount because of export constraints.
A Complex Situation
The situation is complex and multifaceted, with each premier adopting a unique approach to address the potential tariffs. The provinces’ differing strategies have raised concerns about retaliation and its potential consequences, and it remains to be seen how the Canadian government will respond to Trump’s tariff threats.
