NWT confirms initial steps in response to US tariffs

Premier RJ Simpson warned Canadians may face “a difficult few years” as he confirmed initial actions the Northwest Territories is taking to counter United States tariffs.

The NWT has little direct trade with the US. The two do not share a land border.

Even so, the territory had joined other Canadian jurisdictions a month ago – when tariffs were first threatened – in planning to stop selling US liquor and dial back procurement involving American companies.

On Tuesday, Simpson confirmed those steps will now be taken and added one new measure to the list.

“We’re looking at how to end our contracts with Starlink,” the premier said in the legislature.

The NWT government does not have any deal as valuable as the Ontario government’s $100-million Starlink agreement that Premier Doug Ford said on Tuesday he will rip up, but Starlink has come to symbolize a key means of getting online in the North when other systems go down. Taking steps to ditch Starlink in the NWT would be a gesture based on principle rather than any meaningful financial consequence.

“We’re going to continue to do anything else we can to support Team Canada and Canadians and northerners,” Simpson added.

Speaking in the House after leaving a call between premiers and the prime minister on Tuesday afternoon, Simpson said that while a US bid to annex Canada is not something “any of us can fathom,” the nation still needed to guard against it. (Prime Minister Justin Trudeau had earlier said annexation was the only plausible explanation for US President Donald Trump’s actions.)

“We as Canadians might have to put up with some pain based on these tariffs. It might be a difficult few years for us,” the premier said, “but I know that we stay united and we’re going to resist.”

Below, read the transcript from the premier’s exchange with Range Lake MLA Kieron Testart on the topic.

This exchange took place in the NWT legislature on March 4, 2025.

Kieron Testart: Today’s a fairly momentous day in the Canada-US trade relationship. Donald Trump has imposed his tariffs and Canadians are reeling from the consequences, markets are reeling from the consequences, and our future is increasingly uncertain. I know the premier’s been front and centre with Team Canada on protecting our nation’s interests and northerners’ interests. Can you provide an update to this House now that these tariffs are reality?

Premier RJ Simpson: We’ve all heard the news that the President of the United States has decided to implement tariffs on Canada and Mexico. Prime Minister Trudeau has stated that he has initiated counter tariffs on our side of the border, and with additional counter tariffs coming in a few weeks, depending on how things go.

For our part, here in the Northwest Territories, we have directed the NWT Liquor and Cannabis Commission to cease all procurement of American products. We’ve directed the department to refrain from procuring anything from American companies wherever possible. We’re looking at how to end our contracts with Starlink, and we’re going to continue to do anything else we can to support Team Canada and Canadians and northerners.

Kieron Testart: The prime minister has said – shockingly, I think – that this effort of this trade war is to weaken Canada’s economy to make it easier for the Americans to annex us into the 51st state. These are very shocking comments. Has the premier been able to speak to the prime minister and just get a sense of how real that threat is? The NWT is, of course, in the Arctic, and that’s a prize for the Americans, clearly. How serious is this threat, and what are we doing to prepare for it?

RJ Simpson: We’ve had almost weekly conversations, all the premiers and the prime minister. I actually had to leave the call early to come down to the House today, so we were just meeting. And I don’t think there’s a lot of nuance in what the president has to say about annexing Canada. I think if you read what he’s saying, and you listen to what he says, it sounds like he’s serious about it. And I think that people across Canada at all levels of government now realize that, and we need to do what we can to ensure that we stay united and we stay strong economically.

We don’t want the Americans to be able to use economic force or coercion to weaken our federation to the point that, you know, we are at risk of annexation. And frankly, I don’t see that happening. I can’t imagine a world where the Americans are in control of Canada. It’s just not something that I think anyone, any of us, can fathom. It doesn’t mean that we won’t need to protect against that possibility, and we as Canadians might have to put up with some pain based on these tariffs. It might be a difficult few years for us, but I know that we stay united and we’re going to resist.

Kieron Testart: I really appreciate these comments and the premier’s leadership on this. Premier Ford today also said he would do absolutely everything to protect Ontarians and Canadians: tearing up contracts, putting surcharges on energy, barring critical minerals. Is the premier willing to pay any price to protect Canada and the Northwest Territories?

RJ Simpson: I listen to what Premier Ford has to say, sometimes, and I wish I was able to say a lot of those same things. But the fact is, we don’t have that type of economy. We don’t have those types of direct exports to the United States to be able to make those types of threats. We’re not currently exporting any critical minerals to the United States. And so we’re in a much different position.

That being said, I’m confident that as Canadians we can come together and we can both support Canadian businesses and ensure that the Americans are feeling the negative impacts of boycotts – and of the counter tariffs – so that we can overcome the situation.