Carney pushes back on provinces spoiling for a fight with Trump

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(Bloomberg) — Canadian Prime Minister Mark Carney's government appeared to distance itself from the Ontario premier's interference in trade following U.S. President Donald Trump's decision to raise tariffs due to Ontario government television ads.

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Hours after Trump said he would raise tariffs on Canadian goods by another 10%, Canadian Cabinet Minister Dominic LeBlanc posted on social media that negotiations with the US were the “responsibility of the federal government.” Carney, speaking to reporters in Malaysia, then emphasized that point, saying negotiations with the White House were the “sole responsibility of the Government of Canada” and that such negotiations were the “best way forward.”

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The 60-second television spot featured excerpts from then-President Ronald Reagan's 1987 speech criticizing the tariffs. The ad, which aired on television networks in the US, including during Fox's World Series broadcasts, drew an angry response from Trump, who called it “FAKE” and a “serious misrepresentation.”

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Ontario Premier Doug Ford, whose government commissioned the ad, said Friday he would pause the campaign on Monday in hopes of resuming trade talks. But some Canadian provincial premiers praised Ford and Ontario for their direct approach to American politicians and the public. And they say the strong reaction from Trump and some other Republicans is proof that the ad worked.

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The west coast province of British Columbia is launching a digital advertising campaign to highlight tariff hikes on the U.S. timber industry, pointing out that U.S. taxes on Canadian timber are now higher than taxes on Russian timber.

Ravi Parmar, British Columbia's minister of forests, called them a “tax on middle-class Americans” who need Canadian lumber to build and rebuild homes.

“You have a president of the United States who goes on a trade rage every day and threatens tariffs,” Parmar said on CBC News. “We have to stand up to the bully, we can’t back down.”

Canadian softwood lumber already faces taxes of about 45% from the U.S., Parmar said, noting Carney made no mention of forestry progress in his latest comments on the deal, so B.C. needs to bring the issue to the forefront.

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On the other hand, some other provincial politicians praised Ontario for ending the advertising campaign. Alberta Premier Danielle Smith said consistent diplomacy is needed to reach a positive resolution with the United States.

“I'm glad to see Ontario's advertising campaign is being suspended, and I once again urge the federal government to continue negotiations to resolve these tariff issues and restore a free and fair trade agreement with the United States,” Smith wrote in a post on X.

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Meanwhile, Carney and Trump are attending the Association of Southeast Asian Nations summit in Malaysia, where the prime minister will try to both expand trade relations with Asian countries and restart negotiations with the United States. Brian Clow, a former senior aide to Prime Minister Justin Trudeau, said with the cancellation of the Ontario ad, Carney has an opportunity to find Trump at the ASEAN meeting and ease tensions.

“Find a constructive moment and try to avoid this 10% threat from going into effect,” Clow told CBC News. “We really need to get the negotiations back on track because steel, aluminum, lumber, autos—they're all hurting badly—and unfortunately, waiting means those industries will suffer and we'll see more job losses.”

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