Robert Besser
27 Mar 2025

TORONTO, Canada: As the threat of U.S. tariffs looms, Canada is looking inward to strengthen its economy by removing domestic trade barriers and streamlining development approvals.

Prime Minister Mark Carney said late last week that the country could counteract the impact of American trade restrictions by enabling free movement of goods across provinces and territories. Following a meeting with provincial and territorial leaders, Carney announced plans to table legislation by July 1 to eliminate federal-level internal trade obstacles.

"We are committing to table legislation by the 1st of July for goods to travel across the country... free of federal barriers," Carney told reporters. "We can more than offset the effects of any U.S. tariffs by eliminating internal trade barriers alone."

Carney's website cites research suggesting that removing these internal frictions could lower trade costs by up to 15 percent and grow Canada's economy by four percent to eight percent.

He outlined three key strategies to achieve this: harmonizing regulations across provinces, mutual recognition of standards, and establishing common national rules.

Internal trade barriers and long permitting timelines have long frustrated business groups. Delays in approvals have hampered progress on key projects like mines and pipelines.

Carney said labor mobility restrictions would also be addressed under the new push. To fast-track major infrastructure projects, he promised a "one-window approval process" to eliminate redundant federal and provincial environmental reviews. He also clarified that a future oil and gas cap would target emissions, not production.

To further support development, Carney said the federal government would invest in transportation infrastructure to link resource extraction sites and work with provinces on a "national trade and energy corridor strategy."

The economic urgency follows U.S. President Donald Trump's imposition of 25 percent tariffs on Canadian steel and aluminum, with more duties set to begin in April. With 75 percent of Canada's exports and one-third of its imports tied to the U.S., the country remains highly exposed to escalating trade tensions.

Though Carney has not yet spoken directly to Trump or released a detailed plan for navigating the dispute, he pledged targeted support for affected workers and businesses. This includes easier access to employment insurance and deferrals on corporate tax payments.