By Canadian Press

How Canada and provincial governments are fighting back against Trump’s tariff war

Mar 4, 2025 | 3:29 PM

OTTAWA — The federal government and Canada’s provinces and territories answered U.S. President Donald Trump’s tariffs on Tuesday with immediate acts of economic retaliation and some supports for their own industries.

Here’s a look at what they did:

Canada: The federal government immediately imposed retaliatory tariffs on $30 billion worth of U.S. goods, with another $125 billion in goods to be hit in 21 days if the tariffs remain in place. The initial tariffs took effect at the same time as the U.S. tariffs, at 12:01 a.m. Tuesday morning. Most of them are designed to make life more difficult for Republican politicians in their home states.

The initial retaliatory tariffs apply to $3.5 billion in cosmetics and hygiene products, $3.4 billion in appliances and household items, $3 billion in pulp and paper products, $3 billion in tires and $1.8 billion in plastics. They also target are precious gems and metals, furniture, wood products, coffee, grains, alcohol, cocoa products, tools and cutlery, dairy, sugar, sauces and fruit.

British Columbia: Premier David Eby said his province will prioritize Canadian-based companies in procurement and pull from B.C. liquor stores any alcohol made in Republican states, such as Texas and Florida.

Alberta: Premier Danielle Smith said she would announce her province’s response plan on Wednesday after she speaks with her cabinet. Appearing on American network CNBC on Tuesday, she said again she would not leverage Alberta oil exports for retaliation.

Saskatchewan: Premier Scott Moe also said his province is still considering how to respond to the tariffs. Like Smith, he has said he would not leverage energy in retaliation. On Tuesday, he said countermeasures need to be “economically sound and reasoned.”

Manitoba: The province is offering tax deferrals to Manitoba businesses affected by the tariffs and removing U.S. alcohol products from the shelves of provincial liquor stores.

Ontario: Premier Doug Ford said the province will ban U.S. companies from $30 billion worth of procurement contracts and is cancelling a $100 million deal with Starlink, which is owned by Trump loyalist Elon Musk. Ontario also will be imposing a 25 per cent surcharge on electricity sent to the U.S. and is threatening to cut off power exports entirely in April if the tariffs are still in place. Ontario is also threatening to impose a surcharge on mineral exports to the U.S. – or to cut them off altogether – if the trade war drags on.

Quebec: Premier François Legault is offering a loan program to Quebec companies to help with liquidity over the next 12 months and is imposing 25 per cent penalties on bids by American companies on government contracts if those companies aren’t already established in Quebec. Legault also said Quebec will leverage the province’s investment arm and its power utility Hydro-Québec. The government also asked its provincial liquor stores to take American-made products off the shelves.

New Brunswick: Premier Susan Holt promised a $162-million “tariff action plan” which includes supports for businesses hit hard by the tariffs and is considering cutting off electricity to Maine. Holt previously announced a pause in signing new contracts with American businesses.

Nova Scotia: Premier Tim Houston is banning American companies from bidding on provincial contracts and is looking to cancel existing contracts. Nova Scotia is also doubling the cost of tolls for U.S. commercial vehicles on the province’s only toll highway.

Prince Edward Island: The province is introducing non-repayable supports for businesses up to $32,000 and launching a loan program for business hit by tariffs. It is also reviewing all American government contracts and removing American products from its liquor stores.

Newfoundland and Labrador: The province will review and halt procurement from the U.S. “where possible,” Premier Andrew Furey said. U.S. liquor also won’t be sold in provincial stores.

Yukon: The territorial government will place no new orders for U.S.-made alcohol and removed existing stock from its store shelves.

This report by The Canadian Press was first published March 4, 2025.

The Canadian Press

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Ontario Premier Doug Ford holds a press conference regarding the new tariffs that the United States has placed on Canada, at Queen’s Park in Toronto on Tuesday, March 4, 2025. THE CANADIAN PRESS/Nathan Denette

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