Trade & Tariffs: 1) Carney announces supports for sectors affected by U.S. tariffs; 2)U.S. federal appeals court rules some of Trump’s tariffs illegal; 3)Some Indigenous businesses halt exports to U.S. despite long-standing free-trade ties; 4)Carney cabinet meets to prepare for Parliament’s return, debate trade war strategy; 5) (Updated) Doug Ford pours out bottle of Crown Royal over upcoming Ontario plant closure
1) Carney announces supports for sectors affected by U.S. tariffs
Courtesy Barrie360.com and Canadian Press
By Anja Karadeglija, September 5, 2025
Prime Minister Mark Carney announced Friday a suite of new measures to support sectors of the economy hit hardest by U.S. tariffs.
The announcement includes $5 billion for a new fund to help companies pivot to new products and markets and keep skills and production in Canada, and to make them more competitive globally.
At a press conference at an aerospace plant in Mississauga, Ont., Friday morning, Carney said that the fund would be open to “all sectors, given the fact that the tariff impacts are wide-ranging across Canadian industries.” He said that heavily affected sectors like steel, automobile, lumber and aluminum would have priority.
Carney also announced a “Buy Canadian” policy for the federal government. A government backgrounder said the policy would require materials in some defence and construction procurements to come from Canadian companies. It said the policy would “initially cover Canadian steel and softwood lumber” but would allow the government to later include additional materials.
The Canadian Steel Producers Association praised the move Friday, saying in a press release that Canadian steel producers could replace more than 80 per cent of imported steel consumed in Canada.
Carney’s government is also introducing new supports for the canola sector and a one-year delay to the electric vehicle sales mandate. It says it will expand support and loans for small and medium businesses, and introduce new measures to help workers acquire new skills.
Carney said tariff-exposed sectors like steel, lumber, aluminum and copper will be “central to our future competitiveness in a world of major infrastructure investment, defence and security, and that unprecedented acceleration in home building.”
Carney said Canada can’t rely on trade with the U.S. as it did in the past, and his government’s new industrial strategy will build an economy that is more resilient to global shocks.
The Liberal government is in the midst of trade talks with the administration of U.S. President Donald Trump, which has imposed tariffs on much of the world.
2)U.S. federal appeals court rules some of Trump’s tariffs illegal
Source Canadian Press
By Kelly Geraldine Malone, Aug. 29, 2025.
U.S. federal appeals court rules some of Trump’s tariffs illegal
A United States federal appeals court ruled on Friday that many of U.S President Donald Trump’s tariffs are illegal — but it allowed for the levies to remain in place as the case makes its way to the Supreme Court.
The United States Court of Appeals for the Federal Circuit found that Trump’s “Liberation Day” tariffs and his fentanyl-related duties exceeded the powers of the national security statute he used to impose the levies.
“It seems unlikely that Congress intended to … grant the President unlimited authority to impose tariffs,” the judges wrote in a 7-4 ruling.
“The statute neither mentions tariffs (or any of its synonyms) nor has procedural safeguards that contain clear limits on the President’s power to impose tariffs.”
The president in a social media post said “ALL TARIFFS ARE STILL IN EFFECT!” and called the court “highly partisan.”
“If these Tariffs ever went away, it would be a total disaster for the Country,” Trump said in a post soon after the decision came down. “It would make us financially weak, and we have to be strong.”
The Liberty Justice Center, which represented some of the businesses fighting the duties, said in a post on social media that “the president cannot impose tariffs on his own.”
Trump used the International Economic Emergency Powers Act of 1977 to hit nearly every country with tariffs. The act, usually referred to by the acronym IEEPA, is a national security statute that gives the U.S. president authority to control economic transactions after declaring an emergency.
IEEPA doesn’t mention the word “tariff” and the U.S. Constitution gives power over taxes and tariffs to Congress.
The Center said “IEEPA does not give him unlimited, unilateral tariff authority.”
“This ruling protects American businesses and consumers from the uncertainty and harm these unlawful tariffs have cause,” it said.
White House spokesman Kush Desai said in a statement to The Canadian Press that “President Trump lawfully exercised the tariff powers granted to him by Congress to defend our national and economic security from foreign threats.”
“The President’s tariffs remain in effect, and we look forward to ultimate victory on this matter,” Desai said.
Trump has relied on tariffs to realign global trade since his return to the White House and the ruling could upend his plans.
The president has claimed that his steep tariffs on imports from around the world will accomplish many things: the restoration of American manufacturing, trade deals on the United States’ terms and mountains of cash for the federal government.
Trump hit Canada with economywide duties in March after he declared an emergency at the northern border related to the flow of fentanyl. He partially paused levies a few days later for imports that comply with the Canada-U.S.-Mexico Agreement on trade.
Trump increased the tariffs on Canada to 35 per cent at the start of August, with the White House citing fentanyl and retaliatory tariffs as justification for the increase.
U.S. government data shows a minuscule volume of fentanyl is seized at the northern border.
Trump took his trade war to the world in April with duties on nearly every country, saying America’s trade deficits amounted to a national emergency.
A handful of countries have made agreements with the Trump administration — including the United Kingdom, Japan, Vietnam, Indonesia and the block in the European Union — but significant tariffs remain in place even for those with so-called trade deals.
Canada-U.S. Trade Minister Dominic LeBlanc met with U.S. Commerce Secretary Howard Lutnick in Washington this week and said progress was made — but Canadian officials have cautioned it’s unlikely they’ll walk away without out duties.
Ottawa has said it’s looking for a bilateral agreement to ease pressures from tariffs on steel, aluminum, copper and automobiles. Trump used different powers under the Trade Expansion Act of 1962 to enact those duties.
At least eight lawsuits are challenging the IEEPA tariffs.
The U.S. Court of International Trade ruled in May that Trump does not have the authority to wield tariffs on nearly every country using IEEPA. The Trump administration quickly appealed the lower court’s ruling.
The United States Court of Appeals hearing combined two cases. One involves five American small businesses arguing specifically against Trump’s worldwide tariffs, and the other came from 12 states pushing back on both the “Liberation Day” duties and the fentanyl-related tariffs.
The businesses and states argued that IEEPA doesn’t give the president the power to impose any tariff he wants, on any nation, for any reason, for as long as he wants.
They also said that neither trade deficits nor the flow of fentanyl across the border with Canada amounted to an unusual and extraordinary threat.
Trump’s lawyers told the court that the president is legally using powers granted to the executive branch by the Constitution and Congress.
It’s expected the Trump administration will bring the case to America’s highest court. White House Press Secretary Karoline Leavitt has said the Supreme Court should “put an end to this.”
If the tariffs are ultimately struck down the Trump administration has said it may have to refund some of the import taxes and revenue from tariffs now totals $159 billion, more than double what it was at the same point the year before.
Trump said in a previous social media post that it would be “1929 all over again, a GREAT DEPRESSION!”
— With files from The Associated Press
3) Some Indigenous businesses halt exports to U.S. despite long-standing free-trade ties
Courtesy Barrie360.com and Canadian Press
By Alessia Passafiume, September 1, 2025
Some small Indigenous businesses are halting shipments to the U.S. in the wake of President Donald Trump’s tariff regime, even though trade ties exist that predate the founding of both Canada and the United States.
“There needs to be a resolution to allow Indigenous Peoples to continue to undergo the trade routes that they have established and practised, and the treaties that have been signed in the past have suggested that these would be honoured,” said Matthew Foss, who serves as the vice president of research and public policy at the Canadian Council for Indigenous Businesses.
“It’s up to the federal governments in Canada and the United States to figure out how to honour those.”
Trump announced last month his government was going to suspend duty-free de minimus imports from all countries, with the new rules set to come into effect last Friday — part of his government’s larger push to promote domestic business development.
Purchases that previously entered the U.S. valued under $800 without needing to clear customs will require vetting and be subject to their origin country’s applicable tariff rate, which can range from 10 to 50 per cent. For the next six months, carriers handling orders sent through the global mail network also can choose a flat duty of $80 to $200 per package instead of the value-based rate.
Foss said Indigenous craftworks are exempt from tariffs under the current Canada-U.S.-Mexico trade agreement, but the documentation needed to secure that exemption may be too cumbersome for a small business to handle. He is lobbying the federal government to address those administrative burdens, but “it’s not moving quickly.”
Stevi Riley, who lives in Walpole Island First Nation and operates The Beaded Hero, said around half of her orders come from the U.S. She made the decision to stop all sales in that country due to the new import rules, but worries about the impact that cutting her business off from that market will have.
“I just felt discouraged,” Riley said of the changes that could see a 35-per-cent increase in the cost to ship across the border.
“If you (the U.S.) don’t want Canadian products going over, I don’t want to deal with it. I don’t want things getting destroyed or things getting sent back, and I feel like that’s going to happen.”
Tribal Spirit Drums and Music, based in Ivry-sur-le-Lac, Que., posted on social media they would be halting U.S.-based sales as of Aug. 27, citing the de minimus changes, as did Dominique O’Bonsawin, who runs Cedarlilie Beads.
“It definitely means less reach, which is a bummer because the U.S. would be a huge opportunity for growth,” said O’Bonsawin.
“Not being able to trade freely creates more distance and barriers for rebuilding relationships with communities in the U.S. We are related and connected, and this is frustrating.”
The Trump administration says the exemption has become a loophole that foreign businesses exploit to evade tariffs and criminals use to get drugs, counterfeit products and other contraband into the U.S.
Former President Joe Biden and members of Congress also discussed the issue.
Jack Royal, who serves as the chairman and CEO of the Indigenous Businesses Corporation, said in an interview there is a lot of uncertainty in the U.S.-Canada relationship, and that it’s causing instability for Indigenous businesses and Canadians alike.
“Like other small businesses, what First Nations are looking for is some certainty and to look for support on how we can maximize our other options,” he said.
Twenty-five countries have already suspended postal services to the U.S., according to the Universal Postal Union.
“These suspensions will remain in place pending further information on how U.S. authorities will operationalize these measures as well as actual implementation of the required operational changes,” the UN agency said in a news release last week.
4) Carney cabinet meets to prepare for Parliament’s return, debate trade war strategy
Courtesy Barrie360.com and Canadian Press
By Kyle Duggan, September 3, 2025
Carney cabinet meets to prepare for Parliament’s return, debate trade war strategy
American tariffs and an upcoming review of the continental trade pact will headline discussions today as Prime Minister Mark Carney’s cabinet begins its two-day retreat in Toronto.
While previous governments referred to these sorts of gatherings as cabinet “retreats,” Carney’s office is rebranding the event as a “cabinet planning forum.”
The meetings come two weeks before the House of Commons is to return for the fall sitting and about a month or so before Carney’s new government presents its first federal budget.
Ministers are expected to spend most of their time discussing U.S. President Donald Trump’s tariff war.
Just over a week ago cabinet approved a decision to tamp down Canada’s tariff retaliation, aligning most tariffs with the U.S. by exempting goods covered under the Canada-U.S.-Mexico Agreement.
That trade deal will also be on the agenda as cabinet preps for the review of the pact that could begin as early as this fall.
Canada’s quest to build up Canada’s domestic defence industry, building more affordable housing and tackling crime will also highlight the discussions.
While the discussions will happen behind closed doors, ministers typically use these meetings to make announcements on the margins and position themselves for Parliament.
The Liberal caucus will also hold planning meetings in Edmonton next week before Parliament returns on Sept. 15.
5) (Updated) Doug Ford pours out bottle of Crown Royal over upcoming Ontario plant closure
Courtesy Barrie360.com and Canadian Press
By Allison Jones, September 2, 2025
Ontario Premier Doug Ford reacted angrily Tuesday to news of the closure of a plant that bottles Crown Royal, pouring out a bottle at a press conference and encouraging others to dump the whisky as well.
Spirits maker Diageo announced last week that it will cease operations at its bottling facility in Amherstburg, Ont., early next year, as it shifts some bottling volume to the United States.
The move will affect about 200 jobs.
The company has said it was a difficult decision made to improve the efficiency and resiliency of its supply chain, but Ford had some choice words for them.
“I always say, smart people aren’t too smart, and you guys are about as dumb as a bag of hammers for doing this,” Ford said in a rant directed at Diageo.
The premier then produced a bottle of Crown Royal and proceeded to slowly dump it out at the end of an unrelated press conference, saying everyone should do the same and instead support companies that make whisky in Ontario.
Diageo has said it will engage with the community and find ways to support its employees through the transition, and work alongside Unifor to assist unionized workers.
The company said it will still maintain a “significant” footprint in Canada — including its headquarters and warehouse operations in the Greater Toronto Area, and bottling and distillation facilities in Manitoba and Quebec.
The company’s Crown Royal products will continue to be mashed, distilled and aged at its Canadian facilities, it said.
Ford said he asked the company if there were any incentives Ontario could provide to save the jobs but Diageo officials said no. The premier issued a vague warning to the company.
“You hurt my people, I’m going to hurt you,” Ford said, without specifying any future actions.
“You’re going to feel the pain in February when these people don’t have a paycheque and I’m going to stand up for the people of Ontario.”
Liberal John Fraser said Ford’s stunt is “all sizzle, no steak.”
“It’s a great performance,” he said. “It’s just not going to put food on the table for the people who are suffering, the people who are going to lose their jobs. You need to have some substance.”