Ford floats stiff retaliation measures against tariff threats while opponents advocate for looser interprovincial trade

As U.S. tariffs threaten Ontario’s economy, Progressive Conservative Leader Doug Ford raised the possibility of tough retaliatory measures, including banning U.S. companies from provincial contracts, and cancelling a $100-million deal with Elon Musk’s Starlink. Meanwhile, opposition leaders are pushing for stronger interprovincial trade, and a united "Team Canada" approach as a long-term solution.

“He [Trump]  broke a trade deal,” Ford said on Monday at an election campaign event in Etobicoke before U.S. President Donald Trump afforded Canada a one-month reprieve. “He [Elon Musk] is part of the Trump team that wants to destroy families, incomes, and businesses. He wants to take food off the tables of hardworking people, and I’m not going to tolerate it.”

U.S. tariffs were set to take effect today, but following a call with U.S. President Donald Trump, Prime Minister Justin Trudeau announced yesterday that they will be paused for at least 30 days.

With the U.S. holding off on tariffs, Ford said late yesterday that Ontario will also pause its planned retaliatory measures. However, he warned that if Trump moves forward with tariffs, his government won’t hesitate to act.

Despite the temporary pause, Ford said the threat of tariffs isn’t going away. “Make no mistake, Canada and Ontario continue to stare down the threat of tariffs,” Ford said. “Whether it’s tomorrow, in a month, or a year from now when we’re renegotiating the United States-Mexico-Canada Agreement, President Trump will continue to use the threat of tariffs to get what he wants.”

Ford also cautioned that uncertainty surrounding trade with the U.S. is already having a chilling effect on investment, with potential projects stalled and existing ones put at risk.

Ontario Liberal Leader Bonnie Crombie welcomed cancellation of the Starlink contract but criticized Ford’s handling of the deal, calling it a “sweetheart agreement” that never should have been signed in the first place. As part of her economic plan to support Ontario businesses and counter the impact of tariffs, Crombie vowed to eliminate internal trade barriers that have long restricted the movement of goods, labour, and services between provinces.

“I believe there is now political will among all premiers who understand the need to eliminate trade barriers,” said Crombie during a campaign stop in Kitchener. “Whether it’s mutual recognition of credentials, harmonizing codes and standards, or even something as basic as importing wine from another province, these issues must be resolved.”

Ontario NDP Leader Marit Stiles also unveiled her plan to defend workers, fight back, and build a “tariff-proof Ontario.” Speaking in Oshawa, she pushed for a “Team Canada" approach, calling for stronger interprovincial trade to cut reliance on U.S. markets.

“People are worried about what the future holds, if they’ll lose their job or struggle to put food on the table,” Stiles said. “As premier, I will defend every single job in the province. I will fight back as part of a strong Team Canada, and I’ll get to work building a more tariff-proof Ontario that can withstand any crisis for generations to come.” 

Unlike international trade barriers, interprovincial restrictions make it harder for businesses to operate across provinces. These include inconsistent licensing requirements, differing safety and labelling regulations, and duplicate inspection processes. For instance, a truck that meets safety standards in British Columbia may require another inspection upon entering Alberta, and food products that pass provincial safety checks often face additional federal inspections before they can be sold in another province.

The Ontario Chamber of Commerce, along with other Canadian chambers, is also urging premiers to dismantle interprovincial trade barriers, calling them a 21 per cent tariff on businesses. In a letter to provincial leaders, they stress that removing these barriers is no longer optional — it’s an urgent necessity at a time of geopolitical uncertainty, rising protectionism, and looming tariff threats. 

“These barriers cost businesses and consumers billions of dollars annually, driving up expenses and limiting growth,” reads the letter. “Removing internal trade barriers would not only spur economic growth, but also strengthen Canada’s resilience to external threats to our trading markets.” 

The chambers argue that reform would increase government revenue by more than $15 billion, providing a much-needed counterbalance to rising deficits and borrowing costs. “Internal trade is pivotal to the growth of businesses in every province and territory, in particular for small and medium-sized enterprises.”

Peter Graefe, associate professor of political science at McMaster University, says Ford’s tough stance against the U.S. has dominated the campaign. To regain momentum, opposition leaders must shift the focus from Ford’s rhetoric to real solutions and challenge him over his lack of a clear plan to strengthen Ontario’s economy and reduce reliance on the U.S.

Advocating for more open interprovincial trade could be a smart move for Stiles, Graefe said. With Ontario’s strong manufacturing and service sectors, boosting trade within Canada could create new opportunities and reduce vulnerability to U.S. policies.

However, he notes the NDP has a careful approach to free trade. While they support making it easier for workers to move between provinces, they are also cautious about deals that could weaken health, safety, and environmental protections. Some free trade agreements could potentially undermine these protections, a concern for Stiles, Graefe said.