STANDING UP TO TRUMP
It feels good, but nobody wins a trade war: Thomson
Happy Canada Day!
And nothing says happy Canada Day like a trade war with the United States, eh?
Starting July 1, our federal government is imposing tariffs on $16.6 billion worth of American goods imported into Canada. It’s a tit-for-tat response to the tariffs slapped on $16.6 billion worth of Canadian steel and aluminum products by the Trump administration.
Our federal government is also putting aside $2 billion to help Canadian companies hit by the trade crossfire. It’s not known how much of that money will come to Alberta (our steel exports to the United States are worth about $500 million compared to about $7 billion for all of Canada).
Canadian politicians are hoping the tit-for-tat strategy will convince Trump to back down and we’ll go back to being the best of trading buddies.
But, knowing U.S. President Donald Trump, it’s probably more likely our tit for his tat will simply infuriate him and he’ll add more tat.
He’s already threatened to escalate the trade war by imposing a ruinous tariff on the Canadian auto industry that could cost thousands of jobs.
Most Canadian politicians, including those in Alberta, support the federal government’s retaliatory tariffs as a way of standing up for Canadian jobs.
But the Calgary Chamber of Commerce wrote a letter to the federal government pleading against the tariffs.
“We support open and free trade,” said the chamber. “We are also concerned about further escalation and potentially wider and deeper impacts on Canadian businesses.”
The chamber suggested Canada offer concessions to Trump, such as ending our dairy supplymanagement system.
It’s an idea with plenty of support from those critical of our supply-management system. However, the federal government would risk looking like it was caving in to Trump’s bullying — and public opinion polls say Canadians support the federal government standing firm.
Besides, the danger of surrendering to Trump’s bullying is that we would just invite more bullying.
(This Canada Day weekend seems an apt time to quote our first prime minister, Sir John A. Macdonald, who once famously declared, “You cannot get anything by kissing the feet of the people of the United States.”)
Instead, Canada is trying to make political life uncomfortable for Trump through the retaliatory tariffs that cover an eclectic mix of products, literally from soup to nuts (of the metal kind).
Included are herbicides made in the United States, as well as motorboats, roasted coffee, mayonnaise and ballpoint pens. We’re also targeting American items made from steel and aluminum. Here is just one line item from the federal government’s official list: “Nails, tacks, staples, screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers and similar articles.”
The official list, by the way, is entitled “Countermeasures in Response to Unjustified Tariffs on Canadian Steel and Aluminum Products.” A bureaucratic title that manages to slip in a little drama with “countermeasures” and “unjustified.”
Many of the products were chosen because they are produced in states represented by Republican politicians, the ones who keep propping up Trump.
Some news stories have made light of the diverse list of affected products that include canoes, maple syrup and ketchup. Yes, it makes the story seem a bit silly when you learn the U.S. exports canoes and maple syrup into Canada.
But there’s nothing funny about a trade war.
Our federal government is hoping Americans, particularly Republican politicians, won’t be laughing when they realize their state will be hit hard by the tariffs that will increase the price of their products in the Canadian market. The idea is to have Canadians buy fewer of the American products or buy similar nonAmerican products.
There is a lot of money at stake. A handy list compiled by The Canadian Press points out that Canadians buy $1.1 billion worth of herbicides each year from the U.S.
We import almost $640 million worth of pleasure boats including motorboats, rowboats and canoes.
And we buy $17 million worth of maple sugar and maple syrup from Americans. Who knew?
But before we pop open a cold Canadian beer on Sunday to celebrate standing up to Trump, keep in mind this trade war, even if it doesn’t escalate further, will raise the price of products on both sides of the border.
By all means, wave the flag on Sunday. Just don’t wave it in celebration of a trade war with our biggest trading partner.