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Canada’s premiers are insisting they form a united Team Canada in the face of U.S. Donald Trump’s escalated trade war — despite disagreement on how to get him to drop the impending tariffs.
“Nothing unites like a common opponent and there’s no more popular opponent in Canada right now than Donald Trump,” said Manitoba Premier Wab Kinew as he arrived at the premiers’ summer meeting in Prince Edward Island on Wednesday.
The annual meeting was thrown a surprise curveball on Monday when Washington announced that it will impose 50 per cent tariffs on billions of dollars’ worth of Canadian imports come Aug. 19.
The U.S. said the new tariffs are in response to what it sees as Canada’s retaliation against American trade policy and discrimination against its motor vehicles, dairy and alcohol.
Prime Minister Mark Carney briefed the premiers on Tuesday after speaking to Trump. The two leaders promised to intensify trade negotiations before the Aug. 19 deadline.
According to sources who were part of the discussion, Carney told the premiers that his team is hoping to secure a deal in the next 28 days, but added the government also needs to prepare options if it doesn’t land a deal they’re comfortable with — which could include retaliatory measures. The sources were not authorized to speak about the call publicly.
Kinew wouldn’t publicly disclose what federal measures are being discussed but was supportive of Ottawa “using those tools that give us leverage.”
“I think the American president is very vulnerable right now. The cost of living is a political disaster for Donald Trump,” he said.
“A lot of people in Canada are saying in order for us to get a [Canada–United States–Mexico Agreement] deal, we should give them a win. I’m wondering whether we should.”
Using oil as leverage ‘not going to happen’: Smith
One of the pressure points emerging from the Charlottetown gathering is whether Canada should withhold energy exports as a leverage point in the conversations with Trump.
Ontario Premier Doug Ford said Canada should use its potash and oil as leverage.
“We are an energy powerhouse and we could dismantle the U.S. if we wanted to,” he said. “They need to feel the pain rather than us constantly feeling the pain.”
Alberta Premier Danielle Smith says Ontario Premier Doug Ford’s suggestion that Canada use potash and oil to hit back against the latest tariff threats by U.S. President Donald Trump won’t happen. ‘I think we we just need to get down to the hard work of getting to the table,’ Smith told reporters in Charlottetown on Tuesday.
New Brunswick Premier Susan Holt said leveraging energy is something premiers have mused about, while Quebec Premier Christine Fréchette said she’s “not there” yet.
But Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe have flatly rejected the idea.
“That’s not going to happen,” Smith said on Tuesday.
PM says up to provinces to restock U.S. booze
Kinew also joined his counterparts in Ontario and British Columbia in standing firm that he won’t be restocking their provinces’ shelves with American wine, beer and spirits until the trade war is resolved.
The widespread rejection of American alcohol in most parts of Canada has become a point of frustration for the White House, with exports of wine, beer and spirits to Canada plummeting since the provinces took action last year.
B.C. Premier David Eby says Canada can’t back down from a ‘bully’ after the U.S. threatens to slap a 50 per cent tariff on $28 billion in Canadian exports. And although he’s hoping for the best, he will also ‘prepare for the worst’ as the clock ticks down to August 19.
Carney said it’s up to the provinces to decide to offer U.S. booze or not.
“It’s clear that the booze bans are having an impact,” Kinew said Wednesday.
Only Alberta and Saskatchewan, which both have privatized alcohol retail sales systems, still offer American booze.
Saskatchewan Premier Scott Moe said on Tuesday he didn’t see “an advantage in putting that particular ban in place in our province.”
While Trump’s latest move colours almost every conversation at the Council of the Federation meeting, host and P.E.I. Premier Rob Lantz said there are other important issues on the agenda to strengthen the federation, including energy security and advocating for an increase to health care transfers.
“We’re not ignoring [Trump’s recent threats], but we’ve got other work to do,” he said on Wednesday.
“We’ve got to show strength and resolve and get through this together.”