Opposition pushes P.E.I. government on tariff preparedness as legislature resumes

CBC

27-03-2025

As the P.E.I. Legislature resumed for its spring sitting on Wednesday, the Leader of the Opposition questioned the Progressive Conservative government's preparedness to deal with the threat of U.S. tariffs.
Premier Rob Lantz said his government will safeguard the province's export-driven economy as it works toward carrying out the pledges in Tuesday's speech from the throne.
While few specifics were provided, Lantz said there will be dollars dedicated to the tariff fight in the upcoming budget.
"Until we get to the point of our proceedings here in the legislature of tabling a budget, I'm not going to get into a specific number," he said. "The problem is the great unknown about what the impacts of this economic trade war will actually be on the ground."
Nova Scotia's government, which tabled its budget in February, included a $200 million contingency fund for its U.S. tariff response.
Lantz said the P.E.I. government will also bring legislation this session to bring down interprovincial trade barriers, adding that legislation in Nova Scotia is now the standard across the country.
Threats to the economy
Hal Perry, the Leader of the Official Opposition, said he's been hearing from Islanders worried about the effects of U.S.-imposed tariffs.
"There is great concern across this province," the Liberal MLA said. "My fear is that this government really hasn't worked out any substantial plan to cope with this potential problem."
Perry said the uncertainty of the tariff threat is very damaging to Islanders, and asked Lantz which section of the economy is under the greatest threat.
"Our entire economy is under threat," Lantz replied. "We have a very trade-dependent economy we've built. Since 2018 — the year before this government took over here — our export trade has grown by over $1 billion."
Lantz said his government has a plan, a paper copy of which he held up in the legislature as he spoke about it. The title page carried the words "Protecting Our Future."
"This is the blueprint, the framework that we'll follow. We'll have to adjust as circumstances require," Lantz said.
Calling the plan "several pages of pictures," Perry said he would not comment on it.
Team P.E.I. trade mission
Perry also asked Lantz whether he thought the province's mission trip to the U.S. in early January had been a successful project.
Lantz replied by mentioning that he also met with Canadian and American business leaders on his recent trip to Boston for the Seafood Expo North America.
"What I did hear down there is that we have a lot of allies and advocates for our cause down there, and I did hear that the bus tour was very much appreciated because it brought attention… at the beginning of this situation," Lantz said.
"Part of this trade war… is a communications war, as many people south of the border are not very well apprised about how it's galvanized this country north of the border," the premier said.
"Everything we do south of the border to bring attention to this to people on the ground, to plain citizens of the United States, will help bring attention to this and end this tariff war sooner than later," he said.
Perry called the bus trip "quite silly" and said he hopes there isn't another one in the works.
'An opportunity on this side of the border'
While U.S. tariffs are effectively taxes on consumers in the U.S., who pay higher prices on imports as a result of the tariffs being placed at the U.S. border, Lantz said one of his biggest concerns is about how that will affect Canadian suppliers.
"My great fear is that buyers in the U.S. are going to squeeze suppliers in Canada to take that tariff out of their margin, to squeeze them for prices," Lantz said.
He said some big retailers are already trying to do that.
"I have to underscore that the Americans must be the ones to feel the pain of the tariffs that they've imposed on themselves," Lantz said.
But it's not just Americans who will experience the consequences, Perry said: "Islanders from every sector are going to feel that pain."
Lantz agreed, saying that everything that moves from this province across the border would be impacted under a general tariff regime, but he pointed out that we don't know exactly what that will mean.
"I'm still hopeful that, as we see the economic impacts in the U.S., that people who have influence with Donald Trump will make him see sense."
Perry said the government's plan is to "basically just wait, wait, wait, and see who else is going to come in to help us."
But Lantz said he sees a potential opportunity for Prince Edward Island and Canada as the U.S. business innovation ecosystem is disrupted by the uncertainty.
"A lot of research and innovation has come to a standstill in the United States, and that's not an exaggeration," Lantz said, referencing the U.S. government's dismantling of federal agencies, as well as its defunding of research and academic institutes.
"There's an opportunity on this side of the border to attract some of the important sectors like aerospace, like research and development, like biopharmaceutical," he said.