Cabinet Committee on Trade Relations announces province’s Tariff Response Plan to support Island businesses

CANADA, March 4 - Today, Hon. Rob Lantz, Premier of Prince Edward Island and the Cabinet Committee on Trade Relations, announced the Government of Prince Edward Island’s Tariff Response Plan, outlining the province’s strategy to support businesses impacted by newly implemented U.S. tariffs.

“As a province, we did not ask for these tariffs, but we have been preparing for this reality,” said Hon. Rob Lantz, Premier of Prince Edward Island. “Our government has assessed, planned, and advocated—and now, we are taking action to protect our industries and support Island businesses through these challenges.”

The Tariff Response Plan includes immediate and targeted measures to help businesses adapt, maintain operations, and explore new trade opportunities. The first phase of programs, launched today, will provide capital relief, export assistance, and supply chain support. 

Highlights of the plan includes: 

• Removing US products from Liquor Control Commission catalogue and removing US products from the shelves as of end of day today; 
• Reviewing all existing and future contracts with US businesses and organizations, and limiting procurement for US based companies in the future; 
• Engaging, collecting information, and working with stakeholders provincially, nationally and in the United States; 
• Reducing and eliminating internal trade barriers including starting immediate consultation on legislative changes required to improve internal trade and increase labor mobility within Canada; and
• Exploring new markets for PEI exports and assessing critical export infrastructure to determine viability new shipping corridors and opportunities. 

In addition, the Government of PEI also is launching new and expanded initiatives to support Island businesses in the early stages of the trade dispute, including: 

• Export Enhancement and Diversification Fund - Provides non-repayable assistance covering up to 60% of eligible costs, to a maximum of $32,000. Eligible expenses include market research, advertising, trade shows (including travel), and market strategies. 
• Tariff Working Capital Program - Offers financial relief to businesses affected by tariffs, helping them sustain operations, protect jobs, and explore alternative supply chains. Loans range from 6 months to 6 years, with interest-only payments for the first 12 months, followed by structured principal payments over five years.
• Expanded Trade Missions - Innovation PEI is doubling trade missions for Island exporters. An up-to-date trade calendar is available online, featuring planned missions across Canada, Europe, Southeast Asia, and the Mexico/Caribbean region. Future missions will be guided by client feedback and market research.
• Information & Education - A dedicated online hub will provide tariff-related resources, including webinars, funding program details, survey links, and the trade mission calendar.
• Ongoing Program Support - Existing Innovation PEI programs will continue to assist businesses in navigating tariff challenges. Enhanced outreach will ensure companies are aware of available supports for operational investment, productivity improvements, and supply-chain diversification.

Media contact:
Emily Blue
Office of the Premier 
emilyblue@gov.pe.ca