Trump's Trade Tantrum

 

I was going to write about something else today, but now that Trump has had his predictable tantrum over the above ad, perhaps this will serve as a wakeup call to Mark Carney and his government that any hope of securing a stable, long lasting trade agreement with the U.S. is but a sad delusion.

Trump had this to say:

U.S. President Donald Trump says he is terminating all trade negotiations with Canada over an advertisement by the Ontario government that uses the late U.S. president Ronald Reagan's own words to send an anti-tariff message to American audiences.

In a late-night post to his Truth Social platform, Trump attacked the ad, which he attributed to Canada rather than Ontario, as fraudulent and fake.

"TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A." Trump wrote. "Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED."

In a later post on Friday morning, Trump claimed “CANADA CHEATED AND GOT CAUGHT!!!"

"They fraudulently took a big buy ad saying that Ronald Reagan did not like Tariffs, when actually he LOVED TARIFFS FOR OUR COUNTRY, AND ITS NATIONAL SECURITY,” he wrote. “Canada has long cheated on Tariffs, charging our farmers as much as 400 [per cent]. Now they, and other countries, can’t take advantage of the U.S. any longer."

Clearly, the time is drawing very near when we have to assert both our trade independence and sovereignty, as the mad king will not stop until he has crushed both. Appeasement attempts have been an abject failure, and we need to assert the leverage we have: energy and rare earth minerals come readily to mind. 

The only bright spot that has emerged thus far, marking a departure from our usual supine reaction to the U.S., is the fact that there are going to be tangible penalties for both Stellantis and GM over their ceasing production at two plants in Ontario.

As CBC News first reported, the two multinational manufacturers will no longer be exempt from paying Canada’s retaliatory tariffs on as many U.S.-assembled vehicles as before.

The move is an attempt to put pressure on the companies to reinvest in Canadian production and workers to get this benefit back and avoid a big tariff bill.

"This action follows the automakers' unacceptable decision to scale back their manufacturing presences in Canada, directly breaching their commitments to the country and Canadian workers," the government said in a late-night media release.

And those penalties will be consequential.

 The ministers announced that effective immediately, the government is lowering the amount of American-assembled vehicles GM can import tariff-free by 24 per cent and cutting Stellantis's amount by 50 per cent.

"I think Canadians and the industry want the government to be tough on companies that don't own up to those partnerships that in many cases have been worth billions," said Flavio Volpe, president of the Automotive Parts Manufacturers' Association.

"This is a great move."

While these tariffs will raise the Canadian price of GM and Stellantis vehicles, the obvious answer, and likely intent of the penalties, is for consumers to avoid buying their products. Since Canada represents a very important market for American cars, this move will hurt their profits considerably.

Perhaps we are finally deciding that we will no longer give our lunch money to the bully.