Northern premiers announce plans to protect their economies as U.S. trade war begins

Canada's three northern premiers say they're focused on removing trade barriers within Canada — while both the N.W.T. and Yukon have also told government departments to avoid buying American goods — in response to the trade war with the United States. 

U.S. President Donald Trump has slapped 25 per cent tariffs on virtually all Canadian goods, as of Tuesday. Canada responded by putting tariffs on $30 billion worth of American goods, and has said it will put tariffs on $125 billion more in three weeks time.

P.J. Akeeagok, the premier of Nunavut, says his territory relies on imported goods and is vulnerable to the effects of a trade war with the United States. N.W.T. Premier R.J. Simpson said in a statement that his territory was expecting goods to cost more and for supply chain disruptions to affect businesses, communities and families. 

"It is very unfortunate that the U.S. has brought forward this tariff war on us all," said Akeeagok in an interview with CBC News.

Ranj Pillai, the premier of the Yukon, said in a news release that the territory is updating its government procurement policies so that it buys more local goods and fewer U.S. goods. 

Simpson said in the N.W.T.'s Legislative Assembly on Tuesday that he too had directed departments not to buy American products where possible, and that the territory was also looking to end contracts it had with Elon Musk's Starlink. 

Pillai said his government would also put $1 million into an assistance program to help businesses adapt to the "uncertain economic environment." The financial support, he said, was intended to be "as flexible as possible" and is also contingent on legislative approval.

Neither the N.W.T. or Nunavut governments have announced similar assistance programs. 

Breaking down barriers to internal trade

The N.W.T., Nunavut and Yukon governments all say they will no longer buy or sell American liquor products. Pillai said, however, that because the Yukon didn't want to hurt local businesses, those businesses would still be able to sell the rest of the American alcohol they have in stock.

All three premiers expressed support for Canada's retaliatory response, and said that they were looking at exploring ways to break down barriers to trade within the country. 

"I am hopeful that in this year, we're going to see significant changes in Canada's internal trade landscape," Simpson said in an interview.

Simpson said Caitlin Cleveland, the N.W.T.'s minister of industry, tourism and investment, is the chair of the committee on internal trade – which has been meeting to untangle things like regulatory changes needed for goods to flow more easily between provinces and territories. 

The statement from Akeeagok on Tuesday said the Nunavut government is "taking measured steps to support Canadian suppliers and safeguard the affordability and availability of goods for Nunavummiut."

The Nunavut government says it's "actively monitoring" supply chain disruptions and working with contractors and suppliers to make sure infrastructure projects – which are now cast into uncertainty – can continue. 

Simpson also said that keeping critical minerals from the N.W.T. being sold to the States is a "natural discussion," but that right now, no mines in the territory are selling directly to the U.S.

Buy local, premiers say

The premiers of Yukon and Nunavut have also encouraged residents to spend money on local goods, with Pillai saying the government would support "Buy Yukon" campaigns.

"Buying Canadian not only strengthens our economy but also reinforces the importance of investing in domestic industries," Akeeagok said.

In his statement, Pillai also spoke directly to Alaska, which shares a border with the Yukon.

"The United States is our most important trading partner and Canada's closest friend and ally, but this is not how you treat your friends," said Pillai.

"To our friends and family in Alaska: our lives and economies are interconnected, and we hope you will continue to visit our territory and experience all that it has to offer. Please know these measures are not directed at you."