Ontario Premier Doug Ford has cautioned about the possibility of U.S. President Donald Trump reopening the trade agreement negotiated with Canada during his initial term, potentially disrupting existing trade arrangements. Ford emphasized the need for Ottawa to be prepared for such a scenario in the coming fall.
The warning came following a closed-door meeting between the country’s premiers, including Prime Minister Mark Carney, the first such meeting since Trump imposed a 35% tariff on Canada last week, escalating the trade tensions. This new tariff, effective since the missed August 1 deadline for a new trade agreement, applies to goods not covered under the Canada-United States-Mexico Agreement (CUSMA).
Ford expressed concern that Trump might not wait until the scheduled review of the agreement in 2026 and could act swiftly to alter the existing terms of CUSMA. He urged for proactive measures to fortify the economy in anticipation of potential trade challenges.
Ontario and Saskatchewan differ in their responses to the trade war escalation. Ford advocates for immediate retaliatory measures, while Saskatchewan Premier Scott Moe suggests a more cautious approach, emphasizing the protection offered by the CUSMA trade pact.
Ahead of the meeting with Carney, Ford voiced frustration over the adverse effects of high U.S. tariffs on Ontario’s economy, reiterating the call for retaliatory actions. He emphasized the importance of demonstrating strength in trade negotiations and proposed adjustments to tariff thresholds to safeguard local industries.
Ford also proposed tax cuts and urged the Bank of Canada to reduce interest rates to stimulate economic growth. He emphasized the need for collaborative efforts to address trade challenges and underscored the importance of maintaining a robust stance in negotiations with the U.S.
Carney hinted at the possibility of lifting counter-tariffs to navigate the ongoing trade dispute effectively. Meanwhile, Canadian ministers engaged in trade discussions with Mexican officials to explore potential trade opportunities amid the escalating trade tensions.
The Opposition Conservatives criticized Carney’s response to the trade war, leveraging the situation for fundraising efforts. They highlighted the need for assertive action in trade negotiations amidst the evolving economic landscape.