The Yukon and Nunavut governments said Monday they were halting their plans to remove American alcohol from store shelves in retaliation against proposed U.S. tariffs on Canadian goods.
Prime Minister Justin Trudeau said a deal had been struck in a phone call with U.S. President Donald Trump, and the U.S. tariffs set to kick in Tuesday would be paused for at least 30 days while the countries work together on border security.
"While the U.S tariffs are paused, we will continue the policy work that is already underway to ensure we are able to respond accordingly in the future, if needed," said Yukon government spokeswoman Jordan Owens in a statement.
A spokesperson for Nunavut's government said it would still consider pulling U.S. liquor from its stores if the tariffs come in March.
Premiers for the two territories said such tariffs would present unique challenges for northerners, including an increase in the price of already expensive goods and groceries.
"We're in a much different scenario compared to southern provinces," Yukon Premier Ranj Pillai said in a phone interview.
"The cost of goods and the cost of living in the North are outsized compared to southern Canada already, so there's a lot of anxiety now around what this will do to additional cost pressures."
He said U.S. tariffs would also affect infrastructure projects in places like Vuntut Gwitchin First Nation. The remote fly-in community is relying on U.S. equipment for the construction of new homes this year.
Pillai said his government was also considering halting its use of Starlink, a high-speed internet service owned by billionaire and Trump advisor Elon Musk. Ontario announced Monday it was ripping up its Starlink deal then, after the tariffs were paused, said all retaliatory measures were on hold.
Pillai said pausing Starlink in the Yukon has become a "live conversation," but it would be hard to do.
"We have a lot of individuals and businesses that are operating in incredibly remote areas," he said. "It's something we're looking at, but we have to weigh that with the need to have proper communications. It's something that we have really leaned on for emergency measures."
Nunavut Premier P.J. Akeeagok said Starlink has shrunk a large digital divide between Canada's north and south and conversations about its future in the region have been difficult.
"Starlink has been a game-changer for us," said Akeeagok.
"Nunavut is the only jurisdiction in Canada without any fibre connection whatsoever ... so Starlink has opened opportunities for residents that weren't there. It's just one of those very tough conversations we're having."
This report by The Canadian Press was first published Feb. 3, 2025.
鈥� By Fakiha Baig in Edmonton.
The Canadian Press
