Lantz says P.E.I. happy to take tourism dollars from American 'friends and allies' as trade war heats up

With the United States threatening to slap more tariffs on Canadian imports next week, the P.E.I. government continued to come under fire Friday about whether it plans to continue investing south of the border.

The first week of the spring sitting of the provincial legislature came to an end with interim Liberal Leader Hal Perry questioning several cabinet ministers about the province's investments in U.S. companies and products.

This came a day after provincial Tourism Minister Zack Bell made remarks about P.E.I. continuing to draw U.S. visitors to the Island as part of a deal with the National Hockey League that makes this province the NHL's official travel destination.

Premier Rob Lantz backed up Bell's position during Friday's question period, saying this is no time for the Island to stop trying to draw American tourists, or to hold back on showing them some Island hospitality. 

"We've got friends and allies and advocates in the United States… and we should welcome them here with open arms," Lantz said. 

"We should roll out the red carpet and show them the hospitality that we always have, and send them back to the United States as ambassadors to Canada." 

The short answer is, we will take the… Americans' money and invest it.— Mark McLane, P.E.I.'s health minister

U.S. President Donald Trump has promised to place tariffs on a broad set of Canadian imports, including a 25 per cent tax on vehicles not made in the U.S., after April 2. 

The ongoing trade war has led to retaliatory tariffs and talk of loosening interprovincial trade rules within Canada, while individual provinces have pulled U.S. wine and spirits off government liquor store shelves. 

WATCH | Heated words in the P.E.I. Legislature over luring American dollars:

P.E.I. Opposition leader questions provincial investments in American businesses

3 days ago

Duration 1:37

With the P.E.I. government saying it still intends to 'roll out the red carpet' for American tourists despite an ongoing trade war, Liberal MLAs have questions. They raised them in the legislature Friday, asking whether the province's actions align with the prevailing sentiments of most Islanders. CBC's Stacey Janzer reports.

A growing anti-American purchasing sentiment has also led to buy-local movements and has made Canadians question their investments in U.S.-backed companies and contracts. 

During Thursday's question period, Perry asked Bell how the government could "talk tough" about U.S. tariffs while maintaining a contract with the NHL that sends public money into the pockets of an American company.

The tourism minister responded that American consumers have buying power associated with a strong U.S. dollar, and P.E.I. is happy to take their cash when they come here. 

That didn't satisfy Perry, who continued to ask several cabinet ministers whether they agreed with Bell's assertion that the provincial government should continue to prioritize U.S. investments. 

"Which would you prefer to see: Taxpayers dollars… spent on made-in-Canada products, companies and opportunities, or are you on the same page as [Bell] that we should continue putting millions of dollars for investments into the open arms of Americans during the trade war… that is threatening our Island economy?" Perry asked Health Minister Mark McLane. 

McLane, who is a member of the provincial Treasury Board, responded that tourism brings upwards of $500 million into P.E.I.'s economy each year. 

"The short answer is, we will take the… Americans' money and invest it in Prince Edward Island," he said. 

'This is a balancing act'

Darlene Compton, the provincial economic development, innovation and trade minister, told Perry that it's not as simple as the province divesting all of its U.S. investments.

She said industries like fishing, tourism and agriculture rely on American dollars to survive.

WATCH | How parties are dealing with the threat of Trump tariffs:

How parties are dealing with the threat of Trump tariffs | The Political Panel

3 days ago

Duration 18:03

This panel was recorded on March 27. The first week of the federal election was overshadowed by yet another tariff threat from U.S. President Donald Trump. What kinds of challenges and opportunities does this present to the leaders of the three main parties? CBC's Rob Brown discusses the answer with political strategists.

"This is a balancing act," Compton said. "We are dealing with [a president] who is one day saying this, another day saying that. We will work with all our Island sectors to make sure we are doing what is best for Islanders." 

Before the close of question period, Perry asked P.E.I. Finance Minister Jill Burridge when a promised review of government contracts with American businesses will be completed.

Burridge said her team is working on it.