Today : Mar 13, 2025
Politics
13 March 2025

Nova Scotia Premier Heads To U.S. Amid Trade Turmoil

Tim Houston discusses tariffs and trade opportunities to mitigate economic challenges.

Nova Scotia Premier Tim Houston is set to visit the United States this week for discussions on trade and tariffs amid growing tensions between Canada, the US, and China. Houston will be travelling to New York and Boston, where he aims to promote Nova Scotia's seafood and minerals sectors as the province grapples with the impact of potential tariffs.

"Now, more than ever, we have to diversify our economy. We have to go where the buyers are," Houston emphasized during his visit. The Premier highlighted Nova Scotia's capabilities, stating, "Nova Scotia has a lot to offer, from high-quality products like seafood and resources like critically important minerals. We hope to increase our trade opportunities and put an end to President Trump's unlawful tariff conflict so we can get back to business." This trip is particularly significant as the province navigates economic uncertainties linked to tariff disputes.

The discussions come against the backdrop of rapid escalations and retaliatory measures within international trade. On Mar 12, 2025, Houston noted the importance of addressing the challenges posed by tariffs directly. The US has placed tariffs on various Canadian products, citing trade imbalances and border security concerns.

Meanwhile, China is introducing 25 percent tariffs on Canadian seafood exports, with duties taking effect on March 20, affecting products like lobster, snow crab, and shrimp. These tariffs are set to create additional pressure on Canadian agriculture and seafood sectors, which are already facing challenges due to US import penalties.

Chinese duties follow Canada's ban on electric vehicles and certain steel imports from China, raising the stakes for industries dependent on this trade. China is Canada’s second-largest seafood market after the United States, with exports valued at $1.3 billion in 2024, and the timing couldn't be worse for the seafood industry facing simultaneous setbacks from two major markets.

Analysts have expressed concerns about the potential long-term economic impacts due to retaliatory tariffs. Following Canada's decision to impose tariffs on Chinese-made goods, China responded with heavy charges on Canadian agricultural and food imports, effective March 20, 2025. New measures set to take effect include 100 percent tariffs on Canadian rapeseed oil and other agricultural products, which could significantly impact Canada's export economy.

Premier Scott Moe of Saskatchewan addressed the volatile trade condition on the same day Houston announced his trip. He urged the citizens of Saskatchewan to unite against the challenges posed by the impending tariffs from both the US and China. “You cannot ignore the consequences of reality,” Moe warned during his address to the Saskatchewan Association of Rural Municipalities on March 12. 1 have made trips to Washington, D.C., to meet with officials and advocate for fair trade agreements to benefit Canada’s economy."

Previously, the Trump administration had threatened 50 percent tariffs on Canadian aluminum and steel, delaying such measures until April 2, 2025. Despite this delay, Canada has already enacted tariffs reaching $30 billion against US imports, showcasing their proactive trade stance. Negotiations continue as the country grapples with rising tension and trade-related economic concerns.

With export revenues deeply intertwined with US trade, the threatened tariffs represent significant risks. Canadian exports to the US reached $412.7 billion, contributing 20 percent of the country's GDP. The auto industry alone is projected to face major disruptions, with some forecasts indicating potential job losses of over 1 million across key sectors. Analysts predict zero GDP growth for Canada this year, along with contractions anticipated for the following year.

Adding to the predicament, US tariffs may affect the energy sector, with 60 percent of US crude oil being supplied by Canada. Alberta’s economy could significantly feel the backlash of increased tariffs on Canadian energy products.

Houston's visit aims to build stronger economic relations, address the negative impacts of these tariffs, and expand diversification opportunities for Nova Scotia. By engaging directly with both New York's and Boston's markets, he hopes to present Nova Scotia as competitive and worth enduring the current trade war dynamics.

Having previously faced major political tensions over trade, Premier Houston and Premier Moe have made it clear they are advocating for their provinces' interests within the larger Canadian and international contexts. Moe concluded his remarks by asserting, "We need to be firm with our response because what’s happening does not indicate the historical trade relationship we’ve had with the US. We are stronger when we stand together. We must continue working to uphold the relationships we have cultivated over decades."

Houston’s trip serves to highlight not only the provincial benefits but the broader impacts Canada's regional relations have on the national economy. By fostering trade and defense against tariffs, these leaders hope to protect and promote industries at risk amid the rising wave of international trade conflicts.