Canada aims for free internal trade that can offset any US tariffs, Carney says

22/3/2025 14:59

Prime Minister Mark Carney on Friday said Canada could offset the effects of any U.S. tariffs by removing internal trade barriers and that he aimed for free trade within the country by July 1, after meeting provincial and territorial leaders.



"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 on his website cites research that found removing internal barriers would reduce trade costs by up to 15% and expend the economy by 4% to 8%. He said there were three main approaches to do this: harmonizing regulations across provinces, provinces' mutual recognition of rules and creating common national standards.



Business groups have long complained about trade barriers among the 10 provinces and three territories and a drawn-out permitting process that means it can take years to develop and build mines, oil pipelines and other major resource projects.



U.S. President Donald Trump imposed 25% tariffs on Canadian imports of steel and aluminum in March, with further tariffs to follow on April 2.



Canada sends 75% of exports to the United States and a third of all imports come from its southern neighbor, leaving its economy vulnerable to a protracted trade war.