Canada’s Economic Future Hangs on Muskoka’s Summit Decisions

Threats of sweeping tariffs have forced Canada’s premiers into an unusual position: negotiating not only with a foreign power, but among themselves, to preserve the nation’s economic footing.

This week’s summit in Muskoka, Ontario, is no ordinary gathering. The shadow of President Donald Trump’s proposed thirty-five percent tariffs looms large, with Prime Minister Mark Carney and the premiers racing against an August deadline to secure a trade agreement. The repercussions of such tariffs stretch from the rusted steel mills of Hamilton to the forests of British Columbia, touching every Canadian household.

Premier Doug Ford, presiding as chair, has positioned himself at the vanguard of this effort, insisting that “protecting national interests will be top of mind.” Ford’s activism is not only external, as he signed memoranda with several provinces to eliminate internal trade barriers and accelerate critical infrastructure projects. These moves aim to shield Canada from external shocks, but they risk bypassing the legitimate concerns of Indigenous communities. Leaders like those in the Assembly of First Nations have cautioned against sacrificing consultation for speed, especially when pipelines and mining projects threaten traditional lands.

Beyond Ford, other premiers have different stakes. British Columbia’s David Eby wants the same federal focus on lumber as Ontario gets for auto manufacturing. Alberta’s Danielle Smith emphasizes the need for coordinated responses, both to U.S. tariffs and to federal regulations like net-zero targets and emissions caps. Nova Scotia’s Tim Houston sees an opportunity: “Working together to respond to economic threats from the U.S. by breaking down internal trade barriers and expanding in other international markets.”

Yet beneath the surface, the summit reveals the delicate balance between provincial ambition and national unity. Competing interests, from pipelines to bail reform, could fracture consensus at a moment when a unified front is most crucial. The challenge is not simply resisting foreign pressure, but forging a coherent national policy from Canada’s disparate regions and interests. As Ford’s “Captain Canada” persona takes centre stage, the country stands at a crossroads—its leaders must decide whether to move as one, or risk being divided and conquered by external forces.

References:
Canada’s premiers set for 3-day meeting in Ontario with trade top of mind

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