Canada’s provincial and territorial premiers have convened in Ontario’s picturesque Muskoka region for a crucial three-day meeting, with trade and tariffs dominating the agenda. This gathering arrives at a tense moment for both international trade relations and internal cooperation within Canada.
The annual summer premiers’ conference will also include a pivotal meeting with Prime Minister Mark Carney on Tuesday. These high-level discussions are urgently needed as trade tensions with the United States continue to escalate under President Trump’s administration. The shadow of potential tariffs hangs heavy over the Canadian economy, forcing premiers to seek unified strategies to protect their provinces’ interests.
At the heart of the premiers’ concerns are President Trump’s tariffs on various goods. These impositions, and the threat of more, have a ripple effect. This includes impacts on industries like steel and aluminum, urgent need to address internal trade barriers, acceleration of infrastructure and natural resource projects, and the need to hear from Indigenous communities.
Day one of the meeting saw premiers engaging with Indigenous leaders from the Assembly of First Nations, the Métis National Council, and the Native Women’s Association of Canada. These discussions are paramount, considering the potential impacts of trade policies and resource development on Indigenous communities. Carney’s own recent consultations with First Nations chiefs highlighted their fears that their rights are being ignored in the rush to advance projects deemed in the “national interest.”
Some of the top priorities premiers are pushing include pipelines and mining in Ontario’s Ring of Fire region, and chiefs have said that must not happen by governments skirting their duty to consult.
Ontario Premier Doug Ford, outgoing chair of the Council of the Federation and host of the meeting, emphasized the critical need to safeguard national interests. “This meeting will be an opportunity to work together on how to respond to President Trump’s latest threat and how we can unleash the full potential of Canada’s economy,” Ford stated. His sentiments reflect the urgency felt across the provinces to present a united front.
The discussions are taking place against a backdrop of shifting deadlines and escalating threats. While Trump and Carney initially aimed for a trade agreement by July 21st, Trump later extended the deadline to August 1st, while simultaneously threatening to impose a 35% across-the-board tariff on Canadian goods that same day.
Premier Eby of British Columbia is determined to ensure that issues crucial to his province receive equal consideration. “We want to get access to the same level of attention, for example, on the softwood lumber as Ontario gets on the auto parts sector, and that we get the same amount of attention on capital projects as Alberta is currently getting in relation to their proposals,” Eby asserted, underlining the importance of a balanced approach to addressing regional economic concerns.
Alberta Premier Danielle Smith, while advocating for new pipelines, stressed the importance of interprovincial collaboration in the face of external threats. “I was really pleased to sign (a memorandum of understanding) with Doug Ford during the time he was here in during Stampede, and other provinces are working on those same kind of collaborative agreements,” she said. “We need to do more to trade with each other, and I hope that that’s the spirit of the discussion.”
The premiers’ meeting occurs amid growing calls for strengthening internal trade within Canada, which has, historically, faced various barriers. Some premiers argue that the external pressure from the U.S. is serving as a catalyst for change, pushing provinces to address long-standing impediments to the free flow of goods and services across provincial borders. According to sources, the following key items are being discussed:
- Eliminating interprovincial trade barriers
- Streamlining regulations for transportation and trucking
- Harmonizing professional certifications
- Coordinating infrastructure investments
- Promoting information sharing and best practices
This push for internal trade liberalization reflects a broader recognition that a stronger domestic market can help buffer Canada from the impact of external economic shocks. One farmer from Saskatchewan, facing tariffs on his exports, told us, “We began to see things differently,” after the tariff were announced. “We started looking at opportunities to sell our products in other provinces, which we haden’t really considered before. It opened our eyes to the potential within our own country.”
Nova Scotia Premier Tim Houston echoed this sentiment, stating, “We’re seeing the benefit of working together to respond to economic threats from the U.S. by breaking down internal trade barriers and opportunities to expand in other international markets.”
Beyond trade, the premiers are also addressing a range of other pressing issues, including emergency management, energy security, health care, and public safety. Concerns over rising crime rates and the effectiveness of current bail laws are also expected to be discussed, with Carney signalling that federal legislation addressing these concerns will be introduced in the fall.
Doug Ford’s tenure as chair of the Council of the Federation is coming to an end, marking a transition in leadership. However, even after stepping down from the chair, Ford is expected to remain a prominent voice on these issues. His close relationship with Prime Minister Carney, combined with his strong presence in the media, ensures that Ontario’s perspective will continue to be influential.
Ford’s strategy before and after the trade war was to foster international trade and cooperation. The lasting impact remains to be seen as meetings continue.