N.B. premier calls for unified front on Trump tariff threat

Premier Susan Holt says Canadian political leaders need to come together with a unified approach to persuade Donald Trump against imposing new tariffs on Canada when he becomes president in January.

Trump threatened in a social media post Monday night to slap 25-per-cent tariffs "on all products" entering the U.S. from Canada and Mexico — a move that would send shock waves through New Brunswick's export-dependent economy.

"The stakes couldn't be higher," said Nat Richard, the executive director of the Lobster Processors Association, which ships 75 per cent of its frozen lobster to U.S. buyers.

"There's no way to sugarcoat this. If this comes to pass it would have very serious consequences." 

According to the New Brunswick government, 92.1 per cent of all exports from this province went to the United States in 2023.

In 2022, refined oil from Irving and shellfish were the province's most valued exports, making up more than 60 per cent of the total dollar value.

About 80 per cent of the Irving Oil refinery's products are exported to the U.S.

Trump imposed tariffs on Canada during his first term as president but eventually removed them after Canada retaliated with penalties of its own, and after the two countries and Mexico renegotiated the North American Free Trade Agreement.

Holt said Tuesday she is optimistic Trump will back off again.

"The tariffs that he put in place didn't last very long, and we're hopeful that they will see the light again and how damaging this would be to the American economy," she said.

"The American economy relies on petroleum products from Canada and from New Brunswick, and it would hurt them to go this route. So I think we'll be able to convince them that these tariffs are not a wise move." 

WATCH | Holt optimistic that Trump will change his mind on tariffs:

Trump tariffs could have 'severe consequences' for lobster processors, association says

22 hours ago

Duration 1:39

While political leaders work to dissuade Donald Trump from following through on his threat to impose 25 per cent tariffs on imported goods from Canada, the Lobster Processors Association is already warning of how much damage those tariffs could cause.

Michelle Robichaud, the president of the Atlantica Centre for Energy, an industry-supported regional research centre, said she worried that the tariffs would affect the competitiveness of industry in the region.

"Personally, I wonder whether the proposed tariffs could make more attractive for energy businesses to consider opportunities for investing in the U.S. instead of here," she said.

Richard pointed out that Maine lobsters are shipped to Atlantic Canada for processing and then are shipped back to the U.S., in frozen form, for sale.

"That's what I think needs to be driven home. There is a mutually beneficial trading relationship when it comes to lobster," he said.

"If this comes to pass — and I emphasize if — it would have severe and far-reaching consequences for our industry, but we tend to forget it would have equally damaging repercussions on the U.S. side as well." 

In Trump's first term, Prime Minister Justin Trudeau and all provincial premiers, regardless of partisan affiliation, adopted a common front against his trade moves, including speaking engagements in the U.S. to remind American audiences of the two-way relationship.

Holt said she is prepared to be part of a similar effort this time.

"Certainly I'm prepared to do whatever we need to do to protect the New Brunswick economy, and if that's me being there in person, so be it," she said.

Lana Asaff, the senior economist with the Atlantic Provinces Economic Council, said the Canada-U.S.-Mexico Agreement, which the leaders of all three countries signed in 2018 to replace NAFTA, has a complaint and dispute resolution mechanism.

"We would expect to see some legal challenges arising from this," she said.

"However … these legal challenges can take time, and the tariffs would remain in effect while the disputes are being resolved."

Trump linked his threat to action he wants Canada and Mexico to take against illegal migration and illegal drugs crossing the borders.

Richard pointed out that the "order of magnitude" of both problems on the Mexican border is far greater than on the Canadian border.

Some premiers have already suggested that their exports — such as Alberta crude oil shipped to the U.S. by pipeline — should be excluded from Trump's measures.

Holt said it's important that all premiers stick together.

"We want to make sure that the U.S. isn't trying to trade off products or tariffs province-to-province. We need to come as a unified group as leaders in Canada to make sure we get the best results for Canadians," she said.

Opposition Progressive Conservative leader Glen Savoie said different premiers sticking up for their own provinces showed the "diversity" of the trading relationship between the two countries.

"I certainly support the premier of this province and all of the premiers across Canada to work together so that we can find a solution that will ensure that Canada's interests are defended," he told reporters.

Trudeau and the premiers will meet virtually on the issue on Wednesday, Holt said. 

While the premier said she's optimistic the tariffs won't come to past, she also said that "if it's not a bluff, it's going to be very costly," and Canada should respond with its own tariffs if necessary.