Canadian Prime Minister Mark Carney is set to meet with provincial premiers in Prince Edward Island on Wednesday, facing immediate friction over the use of energy exports as a bargaining chip in trade negotiations with the United States.

The summit of the Council of the Federation comes as Washington prepares to unveil a new round of tariffs, with reports indicating President Donald Trump may impose duties as high as 50% on a range of Canadian goods as early as this week.

This internal discord complicates Ottawa's efforts to coordinate a robust response to the looming trade threat, which follows a temporary 10% global tariff that has already strained cross-border commerce.

The disagreement among premiers highlights the difficulty of presenting a unified front.

While some provinces view energy exports as a critical lever to pressure the Trump administration, others are wary of the economic fallout from such a strategy.

This internal discord complicates Ottawa's efforts to coordinate a robust response to the looming trade threat, which follows a temporary 10% global tariff that has already strained cross-border commerce.

Markets are reacting to the heightened uncertainty surrounding North American trade policy.