Saskatchewan Premier Scott Moe, Prime Minister Mark Carney and Premier Doug Ford after the First Minister’s meeting in Saskatoon on June 2.Liam Richards/The Canadian Press
The premiers will be gathering in Ontario cottage country this week for a meeting focused on Canada’s continuing response to President Donald Trump’s tariff threats, and an update from Mark Carney on the state of trade and security negotiations with the U.S.
It will be the first sit down between the Prime Minister and provincial and territorial leaders since Mr. Trump threatened to impose 35-per-cent tariffs on Canadian goods outside the United States-Mexico-Canada Agreement, which are currently subjected to 25-per-cent tariffs.
The President also unilaterally pushed back a July 21 deadline for a new pact with Canada to Aug. 1.
Earlier this month, Mr. Carney announced a first ministers’ meeting in tandem with the summer conference of the council of the federation, a forum for provincial and territorial premiers. The session underscores the urgency on all sides to press forward on safeguarding Canada’s economy against the uncertainty thrown up by the Trump administration.
“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,” Ontario Premier Doug Ford, currently chair of the council, said in a statement.
The higher tariffs are not expected to cover goods traded under USMCA or oil, gas and potash traded outside the deal, which have been hit with 10-per-cent tariffs.
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U.S. Commerce Secretary Howard Lutnick told CBS program Face the Nation in an interview broadcast Sunday that USMCA will be renegotiated in a year’s time, and stressed that goods under that deal remain tariff free.
As for the rest, Mr. Trump’s message to Canada is simple, Mr. Lutnick said: “Canada is not open to us. They need to open their market. Unless they’re willing to open their market, they’re going to pay a tariff.”
Mr. Carney’s office said Sunday that he’ll be meeting with a bipartisan delegation of U.S. senators in Ottawa first thing Monday morning.
The Prime Minister has said he sees little evidence that a deal can be struck with Mr. Trump that removes all U.S. tariffs on Canadian goods.
He has not said what Canada is prepared to do should that be the case.
“We will continue to work constructively for a deal, but it has to be a deal that works for Canadians and Canadian workers,” Mr. Carney said last week.
“And part of the reason why we don’t have a deal is that deal is not yet on the table.”
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Mr. Carney meets with the premiers on Tuesday morning, where they are expected to push for more clarity on what exactly is on the table.
About 95 per cent of Canadian goods flowing into the U.S. are compliant with USMCA, but the steel and auto industries – currently subject to 50-per-cent and 25-per cent levies, respectively – are struggling.
Mr. Ford has always pushed for matching tariffs dollar for dollar and Ontario believes there will need to be tariffs against steel coming from the U.S. if a deal isn’t reached.
Other provinces aren’t as supportive on countermeasures, though support the Prime Minister’s efforts to date.
Saskatchewan Premier Scott Moe said in an interview that the Prime Minister is “doing his level best” to engage premiers and Canadians.
“I won’t say I agree with every move. Saskatchewan hasn’t been a very large fan of countertariffs in any way,” he said, adding that countertariffs have also had an impact on Canadian industries.
“I would say largely he’s reacted you know quite strongly and quite well.”
Dominic LeBlanc, the federal minister responsible for Canada-U.S. relations, will attend Tuesday’s meeting. His office declined a request for an interview.
The premiers’ meeting with Mr. Carney is also expected to include former U.S. ambassadors David MacNaughton and Gary Doer, who will hold a working lunch with premiers, after the Prime Minister departs, to debrief on potential next steps.
“My dad used to say that there is nothing so bad that something good doesn’t come out of it,” Nova Scotia Premier Tim Houston said in a statement.
“The actions of the President are forcing us to look inside our country at what is possible.”
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Ahead of the formal start of their meeting, the premiers will hold discussions Monday with national Indigenous organizations and provincial chiefs, some of whom Mr. Carney met last week to discuss the implementation of new legislation to fast-track major national projects.
Indigenous leaders are concerned that the bill will circumvent their rights, while provincial leaders are seeking clarity from the Prime Minister on their role under the law, known as Bill C-5.
During the meeting with First Nations leaders Thursday, Mr. Carney sought to reassure them that their perspective on whether a project should proceed will be at the centre of any decision.
“So if the provinces are there, and you’re not there, we’re not there,” he said during a question and answer segment at the meeting.
“If the provinces aren’t trying hard enough, we’ll bring them up.”
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The Globe and Mail obtained a link to listen to the meeting from a participant.
Mr. Carney is expected to address C-5 in his talks with premiers. Mr. Moe said he doesn’t expect a list of national projects, but rather discussions about expanding market access for natural resources.
He and Alberta Premier Danielle Smith have said that while they support the major-projects legislation, the Carney government must repeal existing regulations and laws that they say slow down natural-resource development, not just go around those laws for certain projects.
John Hogan, the Premier of Newfoundland and Labrador, said in a statement that pragmatism and collaboration are important aspects of navigating the unpredictable trade landscape between Canada and the United States.
“We must avoid leaving any one provincial or territorial economy vulnerable in sensitive or vital sectors,” the statement said.
Both B.C. and New Brunswick say they’d like to see the continuing dispute with the U.S. over softwood lumber settled in the current round of trade talks, and N.B. Premier Susan Holt said disputes with the U.S. over fisheries are also part of the trade negotiations.
In addition, the premiers will be reviewing the wildfire situation in several provinces, public safety, bail reform, health care and internal trade.
The meeting will take place at the Deerhurst Resort in Huntsville, Ont., not far from Mr. Ford’s family cottage. There, he’s expected to play host to host the premiers, as well as Mr. Carney, for a private reception.
With a report from Emily Haws