As Carney meets premiers, Joly says Europe trade may ‘counter’ U.S. tariffs
Whether Canada should use energy exports as leverage in trade talks with the Trump administration has become a point of disagreement between Canada’s premiers.
Prime Minister Mark Carney will be in Prince Edward Island on Wednesday, where Canada’s premiers have gathered for an annual summit of the Council of the Federation as the threat of new 50 per cent tariffs from U.S. President Donald Trump looms over the Canadian economy.
The visit comes a day after Carney met virtually with the premiers, where they discussed the “unilateral United States trade actions.”
On Wednesday evening, Carney is set to attend a gala hosted by the premiers.
Industry Minister Melanie Joly, who was in the U.K. on Wednesday, said Canada could counter the impacts of tariffs by selling more steel and aluminum to Europe.
“Europe doesn’t have a tendency to close its doors,” Joly told reporters.
Canada’s emphasis on making steel with limited emissions can also give it a competitive advantage in the European steel market, given the “very high environmental standards” that the EU has around industrial carbon pricing, she added.
Trump signed three executive orders Monday to impose a 50 per cent tariff on many Canadian goods under Section 338 of the U.S. Tariff Act of 1930, which allows a president to tariff any country that “discriminates” against U.S. commerce.
While those steep tariffs are not set to go into effect until next month, Trump’s 10 per cent tariffs following a probe into imports of goods allegedly made with forced labour could go into effect as early as Friday.
Whether Canada should use energy exports as leverage in trade talks with the Trump administration has become a point of disagreement between Canada’s premiers.
Some, like Ontario Premier Doug Ford and New Brunswick Premier Susan Holt, have said the option of curtailing energy exports should be on the table.
“They need to feel the pain,” Ford said.
Others, like Alberta Premier Danielle Smith, have categorically rejected the idea.
“Well, that’s not going to happen,” Smith told reporters Tuesday.
Quebec Premier Christine Fréchette indicated that she’s not currently prepared to cut off hydroelectricity exports to the U.S., but may be open to it in the future.
“Personally, I’m not there,” she said.
Ottawa “remains ready to engage with the U.S. for the mutual benefit of both countries,” Carney said in a statement Tuesday.
Earlier in the day, Carney told reporters that he and Trump had agreed to “intensify” trade talks.
On Tuesday, the Canadian government said it will no longer be celebrating the opening of the Gordie Howe International Bridge with American representatives at this week’s ribbon-cutting event.
“In light of trade action threatened by the United States earlier this week, it would be inappropriate to proceed with a celebratory event between the two countries,” a spokesperson for Infrastructure Minister Gregor Robertson’s office said in an emailed statement.
The bridge is scheduled to open to traffic on July 27 under a new revenue-sharing agreement with the U.S. that was struck after Trump delayed the opening by over a month.
This story was originally published by Global News on July 22, 2026. CityAM Canada is republishing it for our Canadian readers.