Canada’s first ministers pledge to remove internal trade barriers amid U.S. tariff pressures

Canada's provincial and territorial premiers at the Mayflower Hotel in Washington, Wednesday, Feb. 12, 2025. (AP Photo/Ben Curtis) (Ben Curtis/AP)

In a unified response to to escalating trade tensions with the U.S., Canada’s first ministers have agreed to reduce interprovincial trade barriers in hopes of strengthening the country’s domestic economy.

The decision comes on the heels of emerging developments in Canada-U.S. trade relations over the past days.

• Trump and Trudeau discussed lifting some tariffs in ‘heated’ call

“All first ministers agreed that now is the time to take meaningful action to further liberalize and support the Canadian market so that goods, services, and workers can move freely,” a statement from the Prime Minister’s Office (PMO) reads.

Canada’s leaders say internal trade barriers increase costs for businesses and consumers, limiting economic growth. They acknowledged that, while progress has been made in recent years, more work is needed.

The leaders added that a key step would be making it easier for Canadians to do business with each other from coast to coast to coast.

“First Ministers agreed that certified professionals with credentials in one jurisdiction should be able to work anywhere in Canada,” the statement continues.

• ‘There is no halfway’: Premier Ford says Ontario’s measures will remain in place until U.S. lifts tariffs

The federal and provincial governments have directed the Committee on Internal Trade to work with the Forum of Labour Market Ministers to provide a Canada-wide credential recognition plan by June 1.

On March 4, the U.S. implemented a 25 per cent tariff on a majority of Canadian goods entering the country. Since the tariffs have taken effect, Prime Minister Justin Trudeau has openly rebuked U.S. President Donald Trump’s actions, referring to the tariffs as a “dumb thing to do.”

Canada also announced a 25 per cent retaliation tariff against $155 billion worth of U.S. goods, with $30 billion being tariffed immediately, and the remaining $125 billion in one month.

In a move to mitigate immediate disruptions, the Trump administration announced a one-month exemption from the newly imposed tariffs for the automotive sector.

“We must ensure that all Canadians have access to Canadian-made goods, no matter where they are in the country,” the statement reads.

With files from CTVNews.ca breaking news editor Lynn Chaya