Manitoba adopting 'buy Canadian' strategy, will scrutinize U.S. hydro contracts: premier
Pause on some U.S. tariffs until April 2 'not good enough,' says Wab Kinew
Premier Wab Kinew says the Manitoba government will adopt a "buy Canadian" approach to prioritize Canadian companies and scrutinize contracts for the sale of hydroelectricity to the U.S. in response to the dangling threat of tariffs, even after some of those levies were put on hold.
Kinew also said Thursday that countermeasures put in place earlier this week, including the removal of U.S. products from provincial Liquor Marts and a plan to offer tax deferrals to affected Manitoba businesses, will continue.
On the second day of the spring sitting at Manitoba Legislature, the NDP government introduced changes to the province's Government Purchases Act to introduce a "buy Canadian" policy, under which "preferential treatment may be given to a Canadian supplier when purchasing goods under the authority of the [act]," a Thursday news release from the province said.
"The same way that you are looking at the labels in the aisles of the grocery store … we think as a government, we should be doing that same work," Kinew told reporters at a Thursday afternoon news conference.
The government had considered introducing a "buy Manitoban" amendment, but with a push underway to remove interprovincial trade barriers, Kinew said the government decided on a "buy Canadian" approach.
Kinew made the announcement just hours after the White House said the U.S. would once again pause some of the 25 per cent tariffs it imposed this week on nearly all Canadian goods entering the United States, putting the levies on some goods on hold until April 2.
A White House official told some American news outlets in a background briefing that the tariff reprieve would only apply to Canadian exports that are compliant with the Canada-U.S.-Mexico Agreement (CUSMA).
The Associated Press reported that roughly 62 per cent of imports from Canada would likely still face the 25 per cent tariffs because they're not "USMCA compliant," as the free trade agreement is known in the U.S., according to a White House official who insisted on anonymity to preview the new executive order on a call with reporters.
But federal Finance Minister Dominic LeBlanc, speaking with CBC's Power & Politics on Thursday, said while it's true some companies have not done all the CUSMA-related paperwork, "the vast majority of Canadian exports to the U.S. are or can quickly be CUSMA compliant."
Kinew, though, said "a reprieve until April 2 is not good enough."
"We cannot live as Manitobans with a persistent threat of Donald Trump tariff tax," he said during question period at the Manitoba Legislature earlier on Thursday, insisting Manitoba's tariff responses will remain in place.
"While these Trump tariffs are being dangled over us, we have to use every single tool in the tool box."
Thursday marked the second time the Trump administration has put threatened tariffs on hold.
Trump threatened to levy a tariff on Canadian goods in early February. He ultimately pulled back, saying they would be paused until March 4.
New directive around U.S. hydro contracts
Manitoba Hydro will also review contracts on energy exports to the United States, Kinew said Thursday, arguing the fact the U.S. tariffs are lower on energy exports "reveals an area where we have strength."
"When we look at those threats coming from Donald Trump's administration, and you've got the lower tariff level on electricity, energy, critical minerals, that's a tell.… [It's] something that they really, really need," he said.
That means for Manitoba, hydro power is "a critical resource that we have," he said.
The province issued a directive to Manitoba Hydro Thursday saying the Crown corporation will require cabinet approval to enter into any new major power purchase or export contract, or extend such contracts, with any party in the U.S.
"Manitoba is concerned about energy security and reliability as an economic priority, combined with the impact of tariffs" and "wishes to ensure that a high level of scrutiny and oversight are applied to major power purchase or export contracts," the directive to Hydro says.
Lauren Stone, the hydro critic for the Progressive Conservatives, said the Opposition asked about provincial plans around U.S. contracts at a committee meeting two months ago, but said Adrien Sala, the NDP's minister responsible for Manitoba Hydro, didn't offer information then.
"What's shocking to me is they are just starting this review now," said Stone. "We see premiers across the country, including [Ontario's] Doug Ford, who's ready to go. He has the tools in his tool box. Manitoba does not."
When asked by reporters about cancelling existing deals, Kinew said that's something the province is reviewing.
He said he has been in regular talks with Ontario's Ford, who is planning to slap a 25 per cent surcharge on U.S.-bound electricity beginning Monday, but the Manitoba premier wouldn't commit to implementing the same measure.
Kinew also said he won't make any rash decisions regarding energy exports, given their importance to Manitoba's economy.
"We've got to be very, very responsible" with hydro power, he said. "We're talking about hundreds of megawatts, thousands of megawatts in total, billions of dollars."
WATCH | Manitoba Premier Wab Kinew talks about U.S. tariffs:
Manitoba Hydro sold $702 million worth of electricity to the U.S. in 2023, according to a Manitoba Bureau of Statistics summary.
Kinew said he hopes to see an end to the trade war so Manitoba can sell more electricity to the U.S.
However, it's questionable whether Manitoba Hydro could do that even if the tariffs are lifted, because the province faces a looming capacity crunch that is expected to require billions of dollars worth of new generating capacity.
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With files from Ian Froese and John Paul Tasker