Nova Scotia responds as Trump tariffs come into effect

Nova Scotia Premier Tim Houston arrives for a first ministers meeting in Ottawa on Wednesday, Jan.15, 2025. THE CANADIAN PRESS/Sean Kilpatrick (Sean Kilpatrick/The Canadian Press)

The Nova Scotia government is responding as United States President Donald Trump unleashes his 25 per cent across-the-board tariffs on Canada and Mexico – triggering a continental trade war Tuesday.

Nova Scotia Premier Tim Houston called Trump “a short-sighted man who wields his power just for the sake of it, not having any consideration for the destructive impact of his decisions on both Canadians and Americans,” in a statement released Tuesday.

“It is impossible to properly describe the uncertainty and chaos that President Trump’s threat of tariffs and now actually imposing tariffs has caused for Canadians,” reads Houston’s statement.

“And now, as President Trump proceeds with his illegal 25 per cent tariffs, Nova Scotia will respond.”

Counter-tariffs plan

In reaction to Trump’s tariffs, Houston says the province will immediately limit access to provincial procurement for American businesses.

“They can no longer bid on provincial business. We are also actively seeking options to cancel existing contracts and reject bids outright until President Trump removes his unlawful tariffs,” said Houston.

The Nova Scotia government also plans to:

• double the cost of the tolls at the Cobequid Pass for commercial vehicles from the U.S. effective immediately
• direct the Nova Scotia Liquor Corporation to remove all alcohol from the U.S. from their shelves effective immediately
• seek options to cancel any existing contracts and reject outright bids from American businesses

“We know this is an effective response. It was an effective response the first time we talked about it and the first time we had this issue with Americans. It hurts American producers who rely on Canadian markets,” said Houston, during a news conference in Ontario.

Houston says his government will also take any steps possible to support Nova Scotians through “this incredibly difficult time.”

“As part of Budget 2025-26, we added a contingency fund to respond to U.S. tariffs,” he said.

“It is too early to determine exactly what specific funding is necessary, but we will communicate to Nova Scotians as we better understand the economic impacts and the federal government’s plans to support Nova Scotians.”

The premier says his government will consider looking at other options as well; however he’s interested in seeing what the federal government does first.

“I’m in favour of a strong response. I think a very strong response is absolutely necessary right now, so we’ll do what we can,” he said.

Houston’s government recently introduced legislation designed to break down barriers to interprovincial trade.

On Tuesday, he said he hopes all provinces and territories immediately endorse and pass corresponding legislation.

“We must be open for business in Canada,” said Houston.

“We are also working on a trade action plan to help businesses engage in global trade, increase their global competitiveness and drive investment growth and have issued a call to action to develop our valuable natural resources.”

‘Some people need to touch the hot stove to learn’

The Nova Scotia premier says Canada worked hard to avoid a repeat of Trump’s tax, adding he knows tariffs are bad for people and businesses on both sides of the border.

“Unfortunately, some people need to touch the hot stove to learn, and while we cannot control or predict their behaviour, we can control how we respond,” he said.

The premier says he will continue to work with the federal government as it designs and implements counter-tariffs.

President Trump’s executive order took effect at 12:01 a.m. ET., hitting Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy.

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