New Brunswick’s premier is reacting to the first round of U.S. tariffs, and says it could be an opportunity for the province to open new markets.
As of Tuesday, a sweeping 25 per cent tariff has been imposed on all goods going into the United States from both Canada and Mexico, with a 10 per cent tariff on Canada’s energy exports.
In response, Canada has hit back with an initial 25 per cent tariff on $30 billion worth of U.S. goods, with additional tariffs on another $125 billion in American goods to come three weeks later, Prime Minister Justin Trudeau said.
Premier Susan Holt said Trump’s “illegal, unjustified” tariffs will have a big impact in the province, where 92 per cent of exports go to the United States.
“These tariffs are an attack on Canada and on who we are, and they mark a turning point for our province and our country,” Holt said.
The New Brunswick government has already stopped buying American products and it is working to lift inter-provincial trade barriers, the premier said.
In its “four-pillar response plan,” the province revealed Tuesday it plans to support affected New Brunswickers, offer relief to businesses, break down inter-provincial trade barriers and promote a “NB Made” campaign.
The province will also open up labour mobility by allowing certified workers from other provinces to work in New Brunswick for at least 120 days while they get the proper certification.
“Now is the time to come together as never before, as neighbours, as New Brunswickers, with our counterparts across the country to stand strong and free for our province and our country,” said Holt.
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She added that her government will also support local businesses as they look for new markets in Asia, Africa and Europe.
“There is momentum across Canada and with many of our friends around the globe, we can open new markets, we can break down trade barriers,” she said. “We need to make sure that we can get through this tariff fight, however short lived, and come out strong and resilient on the other side.”
The province’s tariff plan will cost $162 million and be part of the upcoming provincial budget.
Opposition and New Brunswick Progressive Conservative Leader Glen Savoie raised questions about the plan, however.
“What are the regulations?” he said. “We should have a list of them right now. In terms of the $162 million package, who is going to be eligible? How will they apply?”
Luke Randall, the minister responsible for Opportunities NB, announced financial support to help large, export-focused companies maintain jobs and diversify their markets. The department will also offer loans of up to $5 million to companies hit hard by the tariffs.
“We know there remains a lot of uncertainty in New Brunswick, across Canada and globally, but I’m here to tell you that we are ready, and we have your back,” Randall said.
About half of New Brunswick’s exports to the U.S. are refined petroleum products from the Irving Oil refinery in Saint John — the largest refinery in Canada.
The non-profit Atlantica Centre for Energy says 80 per cent of the vehicles in New England fill up with fuel refined in Canada. As well, New Brunswick’s Crown-owned electric utility, NB Power, has long been the primary source of electricity for northern Maine, which is not directly connected to the U.S. electricity grid.
The centre says that every year, New England imports $10.2 billion worth of fuel oil, natural gas and electricity from Canada. The centre represents Irving Oil, NB Power, Nova Scotia Power, Maritimes and Northeast Pipeline, and several other energy-related businesses and organizations.
Meanwhile, Nova Scotia Premier Tim Houston had some strong words for the American president on Tuesday.
“Donald Trump is a short-sighted man who wields his power just for the sake of it, not having any consideration for the destructive impact of his decisions on both Canadians and Americans,” he said in a statement.
He said his Progressive Conservative government will respond by immediately barring American businesses from bidding on provincial contracts, removing all U.S. alcohol from NSLC shelves and doubling the tolls at the Cobequid Pass for American commercial vehicles travelling that stretch of northern highway that connects the province with New Brunswick.
— with files from The Canadian Press and Global News’ Anna Mandin
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