There is no point in analyzing what Donald Trump’s executive orders are doing to shake up the government in Washington, particularly since there are more than enough American observers to undertake this analysis. Instead, we in Canada can best focus on Trump’s continuing attacks on Canada’s sovereignty and its current trade relations with the U.S. Trump’s proposed imposition of an across the board (except for oil and natural gas) 25% tariff on Canadian imports to the U.S. is seen as a blatant insult to the vast majority of Canadians. After decades of free trade arrangements between both countries, such a tariff imposition would seriously alter the current relations both economically and politically. The threat has created an outrage among Canadians that I have never seen in my lifetime. In addition, there is little doubt that a trade war would economically hurt both Canadians and Americans alike. It would certainly lead to greater inflationary pressures in both countries, something that the Trump Republicans had campaigned to control.
President and CEO of the Public Policy Forum, Inez Jabalpurwala, recently stated: “We must seize this moment to take decisive action to shape a stronger, more resilient and innovative energy-secure economy, as well as a united Canada. It is incumbent upon us to stimulate economic growth, advance clean technology, expand our markets, remove internal trade barriers and get projects built.” What we are seeing are campaigns across Canada to promote “Buy Canada” efforts by consumers whenever there are Canadian-made alternatives to imported American products. In addition, the situation has convinced provincial premiers to seriously find ways to reduce or eliminate any inter-provincial trade barriers. This has been something that the provinces have not really taking up earnestly until now. By encouraging greater inter-provincial trade, Canadian business associations believe that it could result in billions of additional dollars for provincial economies. Such an initiative, once implemented, would also lead to greater internal investment and the expansion and growth of Canadian companies throughout the country. Even Canadian municipalities that purchase American products and contract with American companies for services are now examining local and Canadian alternatives.
What the Trump administration has done is to galvanize Canadian governments, businesses and consumers to move to being less dependent on our southern neighbour for many products and services. Past trading arrangements led to greater integration of and prosperity for both of our economies, especially in relation to the automotive industry, mining and the energy sectors. Canada is a trading nation, particularly given its abundance of natural resources which make up the largest amount of its exports to the U.S. and other countries. The current situation has again encouraged Canada to look more closely to further opening up its trade with other countries, including those in the European Union and Southeast Asia. This move is rapidly gathering momentum and will no doubt increase regardless of Trump’s possible change of mind when it comes to the proposed tariffs. The past trust of Canadians has been severely damaged, and a new reality of the predictable disintegration of our common markets has surfaced.
For this, we must thank Donald Trump! His impertinent declarations that Canada should become the 51rst state have resulted in an expected backlash among Canadians. It has unified the country as never witnessed before, even what happened during Quebec’s failed separation initiatives during the 1970s. Canadians still view ordinary Americans as their friends and allies, but will not stand for Trump’s blatant “bullying” tactics as portrayed by numerous Canadian spokespersons. Canadians, while normally seen as a polite people, are expressing their disappointment and anger with the U.S. administration and its supporters in multiple ways. I suspect that they will continue to do so as long as Trump is in power and continues to attack our sovereignty.