Furey looks to federal government, buying local to help push back against possible U.S. tariffs

With U.S. tariffs possibly coming into effect as early as Saturday, Newfoundland and Labrador Premier Andrew Furey gathered industry and labour leaders to discuss responses, but many are still waiting on the federal government for a plan.

On Thursday afternoon, Furey gathered dozens of industry association leaders and labour representatives to discuss a response to U.S. President Donald Trump's proposed 25 per cent tariff on Canadian goods, even telling them to have their cell phones close by on Saturday when the tariffs could come into effect.

"This could be perceived as a strong attack on our sovereignty and independence and our national identity," Furey told reporters.

"Because this will be the moment where people look back and say, 'Well, when did Canada change? Did we stand up? Did we meet the moment? Did we have the courage for future generations to protect the maple leaf?'"

But instead of laying out ways the provincial government would support industries that stand to be impacted, Furey pointed to the federal government to formulate a "robust plan" to help.

"They have levers that provincial governments don't have — they have monetary policies, they have different fiscal room, they have different fiscal instruments, different fiscal capacity — than we do, here, as a provincial government," he said.

Furey said he'd like to see a COVID-19-style relief package as well as enhanced EI support and Marine Atlantic fees reduced.

Sovereignty under threat

Earlier this month, Furey said Trump's threats to use "economic force" to absorb Canada was a threat to Canada's sovereignty and was "unacceptable."

In response to the tariff threat, the federal government announced a $1.3-billion border package, which includes sending drones to patrol the border as well as two leased helicopters.

On Thursday, Furey said these border measures were good news for Canadians, but that it's a fallacy that Canada is exporting large amounts of drugs or immigrants into the U.S. —  which is one of the reasons Trump's team suggested as the motivation for the tariffs.

"That is not true. That is a bilateral issue. It's not a unilateral issue," said Furey.

However, he said Canada should be establishing a strong border to protect Canadians and it enhances Canada's sovereignty.

Buy local

The provincial government will push a buy local campaign. It's expected to roll out in the next few days.

However, local products can be more expensive and there is an ongoing rising cost of living crisis to contend with.

Furey didn't say if there will be any relief cheques sent out.

"We'll address the issues as they arise. Make no mistake, there will be an acute impact immediately on industries like the fishery, like the forestry industry," he said.

He also said Newfoundland and Labrador needs to look at diversifying its trading partners, but didn't name any specifically the government was looking into.

"In some way, the president has done us a favour in helping us look internally. Should we be relying on one single partner? These are incredible products that can be sold anywhere in the world."

Heightened concerns

Fish, Food and Allied Workers union president Dawn Street said members are worried about incoming tariffs, especially as it could impact collective bargaining. 

Last year, 90 per cent of Newfoundland and Labrador snow crab ended up in the U.S. 

Street said that's an amount that Newfoundland and Labrador consumers can't absorb, and that diversifying into new markets won't happen quickly.

"We're really concerned what it's going to mean on consumer buying power in the United States. Snow crab is such a niche product and consumers will try to find cheaper alternatives," Street said.

Energy N.L. CEO Charlene Johnson said the oil and gas industry is the most significant contributor to the province's GDP, accounting for 23 per cent.

She said oil is unique because it can be shipped anywhere in the world and doesn't need to rely on one customer. However, she said if oil prices drop, that will impact production and would negatively impact the sector.

"One thing that has really come to light with all of this, is the importance of energy security and how we should be producing more oil in Newfoundland and Labrador and supplying our lower carbon product to the world," Johnson said.

With the economic uncertainty, Johnson argued it wasn't a good time for the federal government bring in an emissions cap, which she said would drive investment away.

But PC Leader Tony Wakeham says the provincial government's approach is lacking.

"What is the plan? Where is the concrete plan for each of these industries to say that here's what we're going to be doing going forward? It's nice to announce what you're going to do, but my question is what have you done?" he said.

"That's the question that hasn't been answered and we've known about this since November."

Wakeham agrees the federal government has to be a part of the solution.

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