Ford Pushes for Counteractions Against Trump's Tariffs, Urges Carney to Respond Aggressively
Canadian provinces and businesses are expressing concern and calls for support following the U.S.'s decision to increase tariffs on Canadian goods from 25% to 35% on August 1, 2025. This move is part of the ongoing trade tensions under President Donald Trump.
Prime Minister Mark Carney has expressed his disappointment, emphasising that while the Canada-United States-Mexico Agreement (CUSMA) exempts many goods from tariffs, sectors outside the agreement require government support to cope with the impact.
Ontario Premier Doug Ford is urging Carney to retaliate against the increased tariffs, suggesting a 50% tariff on U.S. steel and aluminum. Lana Payne, president of Unifor, the largest private sector union in Canada, agrees with Ford's call for action.
However, not all provincial leaders share this view. Saskatchewan Premier Scott Moe believes any counter-tariffs from Ottawa would hurt Canadian businesses and consumers. He suggests reducing or removing counter-tariffs to achieve a low-tariff or no-tariff trade environment.
Nova Scotia Premier Tim Houston is also considering retaliatory measures, but with caution. He wants to ensure that any action taken does not further escalate the trade tensions.
Lana Payne suggests retaliation could come in many forms, including tariffs, export controls, stockpiling critical minerals, and more. Matthew Holmes, executive vice-president at the Canadian Chamber of Commerce, agrees and suggests that any retaliatory tariffs should be surgical, targeted, and temporary.
Dan Kelly, president of the Canadian Federation of Independent Business, urges caution in applying retaliatory tariffs to avoid further trade uncertainty. He also urges Carney not to "rush into a deal" since the exemption on CUSMA-compliant goods from tariffs gives Canada a bit of a cushion.
The tariff hikes primarily affect Canadian exports not compliant with CUSMA. However, business leaders note that ongoing uncertainty is detrimental, with delayed deals preventing firms from long-term planning or avoiding layoffs.
Canadian consumers appear to be responding by increasing "Buy Canadian" purchases, reacting to the trade war environment. This shift in consumer behaviour could potentially strengthen domestic markets amid the tariff escalation.
In conclusion, the response involves government disappointment coupled with active measures to support vulnerable sectors and cautious optimism about strengthening domestic markets amid the tariff escalation. The Canadian government, provinces, and businesses are navigating this complex situation with a mix of strategic retaliation, consumer support, and diplomatic negotiations.
- The Canadian government, under Prime Minister Mark Carney, is considering retaliatory measures against the U.S.'s increased tariffs, as urged by Ontario Premier Doug Ford, Lana Payne, and other business leaders.
- Meanwhile, Saskatchewan Premier Scott Moe and Nova Scotia Premier Tim Houston, while considering retaliation, are cautious about escalating trade tensions further.
- In the realm of policy and legislation, calls for retaliatory tariffs are being made, but suggestions for them to be surgical, targeted, and temporary are also being voiced, such as by Matthew Holmes, executive vice-president at the Canadian Chamber of Commerce.
