Nova Scotia strikes back, cancels first U.S. contract amid trade dispute

The Nova Scotia government has cancelled a contract with an American company amid the ongoing trade war.

Nova Scotia has fired back in response to the escalating trade battle with the U.S., canceling its first contract with an American company as part of the plan from Premier Tim Houston to push back against what he calls “illegal Trump tariffs.”

Houston announced the province was reviewing all contracts with American businesses and would cut ties wherever possible in early February as U.S. tariff threats mounted.

“It’s remarkable to find ourselves at odds with our best friend and neighbour,” said Houston. “There are things within our control that we must act on.”

CTV News learned that Service Nova Scotia scrapped a deal with an unnamed U.S. software company to manage files for the Provincial Records Centre.

The province says the tender was awarded but no official agreement was signed. Now they are inviting Canadian companies to bid on the contract believed to be worth around $300,000 the first year, and $50,000 per year after that.

This marks the first American contract that the Nova Scotia government has scrapped and although the contract isn’t worth millions it’s still significant said Service Nova Scotia Minister Jill Balser.

“The contract itself isn’t a million-dollar deal or a large sum of money,” said Balser. “But it’s the symbolism and the effort we’re putting forward to say that, ‘this is important and it matters. We as a nation and province, we’re playing our part in supporting Canada’s (national response) effort and so perhaps it’s a smaller contract but the fact the province is looking at all contracts sends a very strong message.”

Balser said she believes the province is reviewing hundreds of contracts with American companies and more cancellations are likely.

“We have to look at each contract on a case-by-case basis,” said Balser. “There might be contracts that don’t have a Canadian equivalent and so we have to be realistic with the decisions that we are making.”

Balser said they will go with a domestic company or supplier in cases where it makes sense.

“We want to look at all existing contracts and today is the first (to be cut) but I expect more to come,” said Balser.

Nova Scotia has already pulled American alcohol from store shelves and raised tolls on U.S. commercial vehicles crossing the Cobequid Toll Plaza.

Robert Huish, a professor of international development at Dalhousie University, said these moves remain largely symbolic. He said canceling contracts could lead to job losses stateside but he doubts it will soften Trump’s hardline stance.

“If anything, this might give a bit of a kick to Nova Scotia businesses and entrepreneurs,” Huish said. “But it’s not enough to make Trump take a knee and say, ‘Oh, I was wrong about this — let’s come to the discussion table.’”

The province has more than a dozen contracts with U.S. companies that are worth at least $2 million per year and it’s not clear if any of those contracts are in jeopardy.

Premier Tim Houston is travelling to the U.S. today to meet with “potential investors” in New York for the critical mineral and seafood sectors. Houston will then travel to Boston to attend the Seafood Expo North America – the largest seafood exposition on the continent.

“Now, more than ever, we have to diversify our economy,” said Houston in news release. “We have to go where the buyers are. Nova Scotia has a lot to offer, from high-quality products like seafood and resources like critical minerals. We hope to increase our trade opportunities and put an end to President Trump’s unlawful tariff conflict so we can get back to business.”

Premier Houston said he continues to have discussions with other premiers and the federal government about efforts to remove interprovincial trade barriers, improve labour mobility and diversify to new markets.

As part of Budget 2025-26, the province has proposed a $200 million contingency fund to help Nova Scotians affected by U.S. tariffs.

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