Canada Breaks Away from the US
Trump’s contempt for the historical U.S. ally has resulted in a trade war that will negatively affect citizens’ wallets
Six months after suffering a significant legal setback in the Supreme Court against his indiscriminate tariffs that were imposed by decree, Donald Trump has returned to trade war as a foreign policy tool. His chosen enemy is neighbor Canada. Both countries’ governments have embarked on a concerning escalation of retaliatory measures and inflammatory remarks which could affect the whole world.
Negotiations between the two countries broke down on Friday, when contracts had appeared to be on track to avoid another wave of tariffs between two countries that exchange close to $9 billion in goods and services every year and which traditionally have been exemplary allies. Washington blames Ottawa for this failure. Canada reports that Washington made some unacceptable demands at the last moment, including the abolition of the use of French labeling — an unjustified affront that struck a blow to national pride — and access to Canada’s critical minerals. As a result, on Saturday, the U.S. announced that it would impose tariffs on $50 billion of Canadian products, from hockey sticks to paper. Canada has promised to respond “dollar for dollar” with reciprocal tariffs. On Monday, Trump added fuel to the fire, announcing a further 50% taxes on vehicles and steel produced by the U.S. neighbor.
A year and a half of global trade chaos does not seem to have convinced the White House of this policy's drawbacks. As was to be expected, following Trump’s latest threats, shares in U.S. car manufacturers proceeded to fall on the stock market. The measures threaten to further add to inflation. One reason for the president’s meager popularity is the general perception that the administration launches itself into (military or trade) conflicts with no clear objectives, for which citizens pay the price in their shopping carts.
It is not just an economic issue at stake here. Above all, it is a question of sovereignty and U.S. respect for its allies. On Saturday, Canadian Prime Minister Mark Carney stated that, among other things, Washington’s conditions have made it difficult for Canada to sign free trade deals with other countries or trade areas.
The danger of this escalation for Washington is the Canadian example. Three-quarters of Canadians support suspending negotiations with the U.S. If its biggest historical ally decides to stand firm in the face of contempt, stand up to Trump and accept responsibility for the economic consequences, that resistance could be replicated in other countries with fewer historical ties to the U.S.
Six months after suffering a significant legal setback in the Supreme Court against his indiscriminate tariffs that were imposed by decree, Donald Trump has returned to trade war as a foreign policy tool. His chosen enemy is neighbor Canada. Both countries’ governments have embarked on a concerning escalation of retaliatory measures and inflammatory remarks which could affect the whole world.
Negotiations between the two countries broke down on Friday, when contracts had appeared to be on track to avoid another wave of tariffs between two countries that exchange close to $9 billion in goods and services every year and which traditionally have been exemplary allies. Washington blames Ottawa for this failure. Canada reports that Washington made some unacceptable demands at the last moment, including the abolition of the use of French labeling — an unjustified affront that struck a blow to national pride — and access to Canada’s critical minerals. As a result, on Saturday, the U.S. announced that it would impose tariffs on $50 billion of Canadian products, from hockey sticks to paper. Canada has promised to respond “dollar for dollar” with reciprocal tariffs. On Monday, Trump added fuel to the fire, announcing a further 50% taxes on vehicles and steel produced by the U.S. neighbor.
A year and a half of global trade chaos does not seem to have convinced the White House of this policy's drawbacks. As was to be expected, following Trump’s latest threats, shares in U.S. car manufacturers proceeded to fall on the stock market. The measures threaten to further add to inflation. One reason for the president’s meager popularity is the general perception that the administration launches itself into (military or trade) conflicts with no clear objectives, for which citizens pay the price in their shopping carts.
It is not just an economic issue at stake here. Above all, it is a question of sovereignty and U.S. respect for its allies. On Saturday, Canadian Prime Minister Mark Carney stated that, among other things, Washington’s conditions have made it difficult for Canada to sign free trade deals with other countries or trade areas.
The danger of this escalation for Washington is the Canadian example. Three-quarters of Canadians support suspending negotiations with the U.S. If its biggest historical ally decides to stand firm in the face of contempt, stand up to Trump and accept responsibility for the economic consequences, that resistance could be replicated in other countries with fewer historical ties to the U.S.
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