Rob Lantz outlines how P.E.I. government will respond to U.S. tariffs on 'sad day for Canada'

Prince Edward Island Premier Rob Lantz's government has launched the first phase of its U.S. tariff response program — including reviewing all American government contracts and removing American products from liquor store shelves. 

Speaking at a news conference Tuesday afternoon, Lantz said the province will support local businesses as it makes a stand against the trade war launched by U.S. President Donald Trump overnight as he imposed 25 per cent tariffs on virtually all Canadian goods.

"It's a sad day for Prince Edward Island, a sad day for Canada — I'd also add that it's a sad day for the United States," Lantz said. "P.E.I. has been a fair and reliable trading partner for decades… but now we face a challenge we didn't ask for."

Lantz said the tariff response program will provide targeted relief to businesses, support exporters and help industries adapt to the evolving situation.

"Islanders need certainty. Businesses need to know what tomorrow looks like, what next week looks like, what the months ahead will bring.

Lantz was sworn in as premier on Feb. 21 — just over a week ago — after former premier Dennis King resigned.

About 80 per cent of P.E.I.'s total exports go to the U.S., and King had warned before he stepped down that any tariff could have a "catastrophic" effect on the local economy, impacting the province's ability to spend in areas such as housing, social assistance, education and health care.

"Donald Trump has thrown this on top of the heap of issues we have to deal with," Lantz said Tuesday. "It's ordinary Islanders who will ultimately bear the brunt of all of this."

Specific measures to respond to the situation outlined by Lantz and four of his cabinet members were: 

• The province will double the number of trade missions operated by Innovation P.E.I. and offer export companies across the Island support to join those missions. 
• Work will continue on strengthening new markets in other parts of Canada, as well as Europe, southeast Asia, Mexico and the Caribbean. 
• An export enhancement and diversification fund will provide non-repayable assistance to sectors affected by the changes, and will cover up to 60 per cent of eligible costs to a maximum of $32,000. 
• The Department of Agriculture will be increasing investments in the product and market development program, the strategic industry growth initiative and the business development program. 
• All American products are being removed from liquor store and outlet shelves, in a process that began Tuesday morning.

As well, Finance Minister Jill Burridge said officials are reviewing procurement practices to identify whether there are Canadian or international alternatives to American products and services. 

"We will be relentless in seeking alternatives to any American contracts we hold while ensuring the prudent use of taxpayer dollars," she added.  

The province's promotional deal with the NHL is "absolutely under review" as part of that process, Lantz told CBC News: Compass host Louise Martin in an interview Tuesday evening. 

Burridge said P.E.I. has had a number of good years fiscally and the government is in good shape to manage this uncertainty, but it is inevitable that the tariffs will impact P.E.I.'s economy, wages, exports and GDP. 

She said the extent of the impact depends on how long the tariffs remain in place, how long American customers continue to buy Canadian despite the higher prices, and how much Island businesses can sell to other provinces and countries. 

While the total amount of money being spent on support programs was not stated in the news conference, Burridge said the province is building a contingency fund into its budget. 

P.E.I. government lobs its 1st volley of measures at U.S. tariff crisis

20 hours ago

Duration 2:31

It didn't take long for P.E.I. Premier Rob Lantz to react to the overnight imposition of a 25 per cent tariff on all Canadian goods being exported to the United States. He held a news conference with key members of his cabinet Tuesday to announce help for businesses, but also to ask Islanders not to blame all Americans for what their president is doing. CBC's Cody MacKay reports.

Bridge tolls will stay on table

While pushing for solutions on the international trade front , Lantz said barriers that exist in our own country can't be ignored. 

Lantz said his primary message to the prime minister and provincial leaders when they meet will be to end bridge and ferry tolls that he said place an unfair burden on Island businesses when it comes to competing with mainland companies.

That said, he said his focus will stay on collective action that the leaders can take as a group. 

"P.E.I. is a part of Team Canada. We're all in," the premier said. "I have replaced my P.E.I. lapel pin for the Canadian flag. I think we need solidarity across this country."

Darlene Compton, P.E.I.'s new minister of economic development, innovation and trade, gave more details about help for Island companies. She said Innovation P.E.I.'s trade missions this year will connect buyers, sellers and distributors in places like Canada, Europe, South East Asia, Mexico and the Caribbean.

The trade mission's calendar can be found on the Innovation P.E.I. website. 

Through Innovation P.E.I., Compton also said, the province is also launching the export enhancement and diversification fund, Compton said. The fund will provide non-repayable assistance to the community affected by the changes, and will cover up to 60 per cent of eligible costs to a maximum of $32,000. 

These costs will cover everything from market research, marketing and promotion to market strategies and travel costs for trade shows and other events, she said.

The province is also rolling out a working capital program to provide relief loans to businesses affected by tariffs, Compton said.

"We know this is a fluid situation but we will advocate every day for this to come to an end," she said.

'Troubling day' for agriculture, seafood sectors

"Today is a troubling day for our primary industries," Agriculture Minister Bloyce Thompson said, adding: "Markets are not made overnight."

He said Prince Edward Island agriculture accounts for 10 per cent of the Island's GDP, noting: "Last year we sent over $900 million worth of products to our friends in the U.S."

Thompson noted that the potato industry in particular has been through "political charged trade barriers in the past," including the discovery of potato wart in some P.E.I. samples that led to U.S. borders being closed to potato imports in November 2021.   

At the end of his remarks, the minister said he had a message for Island farmers: "You're a resilient bunch… we'll tackle this the same way we did last time, together."

Zack Bell, P.E.I.'s minister of fisheries, tourism, sport and culture, encouraged seafood businesses that might not typically attend trade missions to take part in two major upcoming expos. 

Bell said the provincial government is committed to supporting Island businesses through this period of uncertainty, and knows there will be a need for workforce support, working capital and diversification. 

He spoke of the importance of aquaculture and fishing to the Island, calling those industries "not just an economic pillar but also a way of life." 

Bell said he encourages Islanders to support the local seafood industry and add P.E.I. seafood products to their meals, adding: "Buy local and buy often."