US Governors Sidestep Trump, Open Trade Talks with Canadian Premiers
In a bid to circumvent the current administration’s escalating trade tensions, six U.S. governors are proactively reaching out to their Canadian counterparts. They have extended a collaborative invitation to Canadian premiers for a crucial meeting in Boston. This initiative aims to preserve and strengthen the economic ties that have long united New England and Eastern Canada.
Massachusetts Governor Maura Healey spearheads this meeting, joined by five other governors from New York, Maine, Connecticut, Rhode Island, and Vermont, most of whom are Democrats. The invite extends to premiers from Ontario, Québec, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. The objective is clear—to reinforce cross-border trade ties amidst tariffs that have been “making life increasingly more expensive” for citizens and businesses alike. The invitation emphasizes that it is imperative for states and provinces to collaborate to maintain trade flow and safeguard jobs.
The governors describe the U.S.-Canada relationship as “a cherished one, founded on mutual financial advantages and centuries-old familial and cultural bonds that supersede politics.”
In a statement, the Healey administration forecasts that Trump’s tariffs on Canadian energy could drastically inflate gas and heating oil prices. The projected financial impact could cost Massachusetts consumers nearly $1.36 billion annually, stretching to a staggering $3.4 billion across the broader New England region.
“Canada is our number one trading partner,” Healey remarked. “For generations, we’ve enjoyed a robust partnership and a healthy exchange of diverse goods such as energy, lumber, dairy, cars and car parts, seafood, and more. Our businesses and residents have all reaped benefits from this relationship.”
However, this once thriving relationship now faces unprecedented strains. Healey laments that President Trump’s tariffs are complicating business operations and hiking costs for essential goods both across New England and in Canada.
“That’s why I’m proud to join my colleagues from the Northeast in hosting this Boston convening with Canadian premiers. It’s crucial that we discuss how to uphold our partnership, lower costs for our people, and support our local businesses,” she added.
These tariffs have already made their mark in Ontario, Canada’s largest economy. Anxiety looms as Honda announced a pause on its significant $15-billion EV supply chain project in Alliston. It cited “changing market conditions” and U.S. trade barriers as pivotal reasons. Similarly, big giants like Ford, GM, and Stellantis have slowed or halted their EV production, sparking concerns about the future of a sector that supports over 100,000 jobs and contributes $36 billion in exports.
The Ontario Financial Accountability Office warns that if tariffs continue, the province faces the risk of losing up to 68,100 jobs this year, with that number potentially doubling by 2029.
This meeting in Boston provides an essential platform for Canada to flex its muscles through provincial channels, creating an opportunity for influential diplomacy.
Romel Mostafa, director of the Lawrence National Centre for Policy and Management at Ivey Business School, views the meeting as a significant moment for provincial diplomacy to sway trade outcomes. “Such diplomacy can be particularly impactful, especially when it involves U.S. governors with direct access to the administration and who can speak out on critical trade matters.”
Mostafa underscores the necessity for U.S. governors to spotlight the economic repercussions evident in their respective states and Canadian provinces. Simultaneously, he advises Canadian premiers to deliver a coordinated and cogent message. “The federal government must lead in developing a coherent and unified set of priorities, facilitating provincial-level diplomatic efforts and ensuring strategic consistency in Canada’s engagement with U.S. peers.”
Bipartisan support in the U.S. is deemed essential for bringing Trump’s trade war to an end. “Ideally, Republican-led states would have a stronger representation as these governors may have more sway with the Trump administration and could influence negotiations’ pace and fairness for both countries.”
The constructive opportunity presented by the outreach from U.S. governors is a chance Canada should undoubtedly seize.
Newfoundland and Labrador echoed their enthusiasm for the Boston meeting, expressing support for stronger regional trade ties and enhanced cross-border economic cooperation.
A statement from Premier John Hogan’s office disclosed plans to collaborate with Ottawa and other provinces, following a “Team Canada” approach to alleviate trade barriers and foster industry growth. The office highlighted the crucial role of open dialogue with U.S. partners, emphasizing its importance in navigating trade tensions and seeking innovative ways to bolster cross-border ties.
To aid this mission, the province will soon inaugurate its first foreign office in Boston, strategically located alongside Global Affairs Canada. This move will foster more engagements on how best to leverage the province’s presence to advance its interests in the New England region and the U.S. in general.
The province notes its strong economic links with the U.S., with approximately $4.5 billion in goods exported to the United States in 2023, accounting for 37 percent of its total exports. Furthermore, 60 to 80 percent of Newfoundland and Labrador’s seafood is sold to U.S. markets, exhibiting the province’s dependency on a vibrant and free-flowing trade relationship.
Premier Susan Holt of New Brunswick has also accepted the invitation from the governors. “We appreciate their continued collaboration as we have shared a cooperative relationship for decades,” stated Katie Beers, press secretary for the premier.
In recent developments, a coalition of cross-border Canadian and American mayors stressed in a statement that escalating U.S. tariffs might severely cripple regional economies. This group represents over 270 municipalities through the Great Lakes and St. Lawrence Cities Initiative. They emphasized the region’s substantial contribution to more than half of Canada-U.S. trade and over $6 trillion in annual economic activity, urging for immediate cooperation to avert a trade conflict.
