In a strategic move to bolster the national economy against escalating U.S. trade tariffs, Canadian Prime Minister Mark Carney has announced an ambitious plan to eliminate internal trade barriers by July 1, 2025. This initiative aims to unify the country's market, enhance economic resilience, and stimulate growth amid external trade challenges

During a press conference on March 21, 2025, following discussions with provincial and territorial leaders, Prime Minister Carney outlined the government's commitment to dismantle federal obstacles hindering the free movement of goods across Canada. He emphasized that this endeavor could "more than offset the effects of any U.S. tariffs" by fostering a seamless internal market.

The strategy encompasses three primary approaches:

Harmonizing Regulations: Aligning differing provincial regulations to create a cohesive national framework.

Mutual Recognition: Ensuring that products and services approved in one province are accepted nationwide.

Establishing National Standards: Developing uniform standards to simplify compliance and reduce redundancies.

Research cited by Carney indicates that removing these internal barriers could reduce trade costs by up to 15% and expand the economy by 4% to 8%.

The announcement comes in response to U.S. President Donald Trump's imposition of a 25% tariff on Canadian steel and aluminum imports in March, with additional tariffs anticipated in April. Given that 75% of Canada's exports are destined for the United States, these measures pose significant economic threats.

To further stimulate economic activity, the government plans to expedite approvals for major infrastructure projects. A "one-window approval process" will be introduced to eliminate duplicative requirements between federal and provincial environmental assessments, thereby accelerating developments in sectors like mining and oil pipelines.

Recognizing the potential impact of U.S. tariffs on Canadian industries, the government is preparing support measures for affected workers and businesses. These include easier access to employment insurance and deferred tax payments, aiming to cushion the economic blow and maintain workforce stability.

Prime Minister Carney, who recently assumed office following Justin Trudeau's resignation, is expected to announce a national election in April. His proactive stance on internal trade reform and economic resilience is anticipated to be central to his campaign, contrasting with Conservative Party Leader Pierre Poilievre's economic policies.

Canada's initiative to eliminate internal trade barriers represents a decisive effort to strengthen the domestic economy in the face of external pressures. By fostering a more integrated and efficient internal market, the government aims to mitigate the impact of U.S. tariffs and promote sustainable economic growth.