March 4, 2025. Message from Bianca McGregor, CEO of Greater Charlottetown Area Chamber of Commerce:
Dear Members & Friends,
As of 12:01am today, the U.S. government has implemented a 25% tariff on Canadian exports and a 10% tariff on Canadian energy. In addition, the U.S. government has a 25% tariff on Mexican exports and a 20% tariff on Chinese exports.
These measures will have significant implications for businesses and consumers on both sides of the border. Tariffs don’t just disrupt trade, they also drive-up costs across the economy, affecting everyone.
Prime Minister Justin Trudeau has announced that Canada will retaliate with its own 25% tariffs against $155 billion of American goods, starting with a list of $30 billion worth of goods immediately, and tariffs on the remaining $125 billion happening in 21 days.
In a press conference this afternoon, Premier Lantz said PEI is launching its first phase of a tariff response plan. Action items include:
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Doubling trade missions, and offering export companies the ability to join these missions.
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Working closely with federal and provincial partners to strengthen Canada’s response.
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Advocating to end bridge and ferry tolls.
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New programs to support Island businesses to provide targeted relief, support exporters, and help industries adapt to the evolving situation.
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Launching an export enhancement and diversification fund.
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Relief loans will be offered to businesses affected by tariffs.
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Removing American products from liquor stores.
The Greater Charlottetown Area Chamber of Commerce, alongside our provincial, regional and national partners, has been actively advocating for free and fair trade. All indications from the federal government today are that they, along with provincial/territorial leaders, are also resigned to seeing an end to tariffs and future threats of tariffs.
That said, the U.S. government seems resigned to see it’s tariff policies through, in spite of decades of successful and prosperous trade between our two countries. To ensure resilience and protect our economy, our businesses and governments should diversify trade markets and relationships where possible, and the governments of Canada and our provinces need to streamline tax and regulatory systems and do even more to address the barriers limiting the flow of internal trade.
Just last week, we submitted a letter to the PEI Legislative Assembly’s Standing Committee on Education and Economic Growth regarding the predicted impacts of the U.S. tariffs, concerns of our membership, and our recommendations to the provincial government.
We have also joined forces with the chambers of commerce across P.E.I. to launch a Shop Local campaign to encourage Islanders to support local businesses and recognize the critical role all Islanders play in sustaining the Island’s economy. We continue to press for solutions that protect our businesses and mitigate economic impacts from these tariffs.
In mid-February, the U.S. President threatened an additional 25% tariff on steel and aluminum to take effect on March 12. The President has also threatened global reciprocal tariffs to take place starting April 1.
We will continue to monitor developments and keep our membership informed as this situation evolves.
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From Bianca’s Desk offers timely advocacy and policy updates to keep you informed about key developments impacting the business community.