Business and policy leaders gather to tackle tariffs, internal trade barriers, and economic resilience
Prime Minister Justin Trudeau has announced a Canada-US Economic Summit on Friday in Toronto, as his government looks to attract investment and remove internal trade barriers.
The summit will bring together leaders from the business, trade, and policy sectors, along with representatives from organized labour, to explore ways to strengthen Canada’s economy. Key topics will include making it easier to conduct business between provinces, expanding export markets, and improving national productivity.
"This is an important opportunity to build a long-term prosperity agenda for Canada," Trudeau said in a statement Wednesday. "One that is resilient, that breaks down barriers between provinces and territories, and that is diversified in global trade."
Breathing room
The summit comes just days after US president Donald Trump agreed to delay imposing 25% tariffs on Canadian imports for at least a month, a decision that has given Ottawa a temporary reprieve but left uncertainty lingering over the economy.
Trump announced the delay of the tariffs on Monday, just hours before they were set to take effect. The decision followed a call with Trudeau, during which the Canadian leader emphasized the potential economic fallout. While the pause gives Canada breathing room, Trump has signalled that he still expects a broader "final economic deal" with Canada in the future.
The US president has repeatedly justified his tariff threats by citing concerns over border security, including illegal migration and fentanyl trafficking. During their discussion, Trudeau outlined an updated border security plan, reminding Trump that Canada is already implementing a $1.3-billion initiative that includes new helicopters, technology, and personnel.
According to a statement, Trudeau also committed to three new measures: appointing a "fentanyl czar," listing Mexican cartels as terrorist organizations under Canadian law, and launching a $200-million intelligence program targeting organized crime and fentanyl trafficking.
Renewed focus on internal trade
Alongside external trade challenges, the summit will also address long-standing internal trade barriers between Canadian provinces, a topic that has gained renewed urgency. Regulatory differences across provinces often make it easier for Canadian businesses to trade internationally than within the country.
Finance minister Dominic LeBlanc, internal trade minister Anita Anand, and Canada's ambassador to the US Kirsten Hillman have been leading discussions with provincial leaders on streamlining labour mobility and standardizing goods and services regulations.
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Anand said that removing internal trade barriers could reduce prices by up to 15% and inject as much as $200 billion into the domestic economy. When asked whether these barriers could be removed within 30 days, Anand said “yes."
“We are at a pivotal moment in the history of our country,” Anand said during the news conference in Halifax.
The push for internal trade reform has gained political momentum. Conservative leader Pierre Poilievre recently described Trump’s tariff threats as a "wake-up call" and has promised to introduce a plan to boost interprovincial trade if elected.
While Canada prepares for its economic summit, a delegation of cabinet ministers is in Washington this week meeting with industry representatives and Republican lawmakers to argue against the tariffs. Provincial premiers are expected to travel to the US capital next to continue lobbying efforts.
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