Candace BarnetteProvincial governments across Canada have launched measures to hit back at the tariffs that have been placed on their country. U.S. businesses will be impacted as governmental entities banned American contractors from their procurement processes after President Donald Trump’s announcement of 25% tariffs on most Canadian goods.
President Trump on Thursday postponed the implementation of some tariffs on Canadian goods, but many American businesses may already be experiencing the effects of Canada’s retaliatory measures. From coast to coast, provincial leaders have established restrictions on government contracts, removed American products from stores and created financial aid packages for impacted businesses.
In Ontario, the government suspended U.S. company participation in government procurement processes. Ontario Premier Doug Ford terminated a contract worth approximately $100 million with Starlink for rural internet services.
Liquor authorities in eight provinces—Ontario, Quebec, Nova Scotia, Newfoundland and Labrador, New Brunswick, Manitoba, Prince Edward Island and British Columbia—have begun removing American alcohol products from retail locations.
British Columbia is focusing its restrictions on products from certain U.S. states and establishing a new procurement policy prioritizing Canadian goods, beginning with products manufactured within the province.
Transportation costs have increased for American commercial vehicles in Nova Scotia, where officials doubled the tolls at the Cobequid Pass, a key highway connection to New Brunswick. Nova Scotia officials indicated they are reviewing existing contracts with American suppliers.
New Brunswick is working collaboratively with neighboring provinces to develop alternative markets for key exports.
Quebec has established financial support measures, offering businesses liquidity loans up to $50 million with 12-month terms to navigate the trade disruption and explore new export opportunities.
Prince Edward Island announced an expanded international trade mission schedule and is conducting a comprehensive review of government purchasing to identify non-American alternatives for goods and services.
Several other provinces, including Alberta and Saskatchewan, have scheduled announcements regarding their response measures in the coming days.
At the federal level, Canada has implemented counter-tariffs on $30 billion in American goods, with Prime Minister Justin Trudeau indicating additional measures totaling $125 billion will follow after Canadian businesses have adjusted their supply chains.
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