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Prime ministers

Ontario Premier Doug Ford Warns of Potential Trade Deal Disruption

Strategic Insights

— 1 min read

Ontario Premier Doug Ford expressed concerns about the Canadian economy's vulnerability to the ongoing trade war with the US, stating that President Donald Trump could suddenly pull the trade agreement his administration negotiated with Canada. Ford urged Ottawa to prepare for a potential disruption this fall, suggesting that Trump may not wait for the scheduled review of the agreement in 2026. The warning comes as the country's premiers and Prime Minister met in private to discuss the trade war and its impacts on the economy.

Key Takeaways:

  • Ontario Premier Doug Ford warned that US President Donald Trump could suddenly pull the trade agreement negotiated with Canada during his first term, which could have severe economic impacts on the country.
  • The new 35% tariff imposed by Trump applies only to goods not covered by the Canada-United States-Mexico agreement on free trade (CUSMA).
  • Ford stated that Trump may not wait for the scheduled review of the agreement in 2026 and can pull the carpet out from underneath the agreement at any given time.
  • Ford called for swift action to bolster the economy, including accelerating efforts to mobilize capital and investment, diversify supply chains, and strengthen domestic production capacity.
  • The premiers and Prime Minister agreed to take concrete actions to support Canadian workers and businesses most impacted by tariffs.
  • Ontario is at odds with Saskatchewan over Canada's response to the escalating trade war, with Ford advocating for immediate retaliation and Saskatchewan Premier Scott Moe urging Ottawa to dial down its retaliatory tariffs.

Statistics:

  • 35%: The baseline tariff imposed by US President Trump on Canadian goods not covered by the CUSMA trade agreement.
  • Aug. 1: The deadline for securing a new trade agreement between the US and Canada, which was missed, resulting in the imposition of the 35% tariff.
  • 2026: The scheduled review year for the trade agreement outlined in the CUSMA agreement.

Sources:

  • David Baxter and Kyle Duggan, The Canadian Press
  • A readout from the Prime Minister's Office, shared on Wednesday evening
  • The Bank of Canada, mentioned in relation to the interest rate suggestion

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