CAN-USA Tariff Strife (split from various pol threads)

[lenaitch]

He can control the provinces though. You think they will keep the bans going if the feds threatened to cut provincial transfers?

Potentially they could, but it is much harder to explain to your constituents why you need to substantially raise taxes to pay for the province than it is to drop the ban.

Federal transfers to the provinces are governed by legislation (Canada Health Act, Federal-Provincial Fiscal Arrangements Act, etc.) as well as formal agreements between the parties. Unless the federal government wants to break it own laws and agreements, or recall Parliament to try and amend the laws, then inevitably defend their action in court, I doubt that would happen.

It's not like the king doling out coins to the subject out of his largess.