We knew the day was coming. Eventually, U.S. President Donald Trump was going to impose tariffs on Canadian goods exported to the U.S.
The president initially said he was going to sign the executive order on Jan. 20, right after his inauguration. Jan. 20 came and went without the punitive measures. Then Feb. 1 seemingly became the target date for a 25 per cent tariff on most goods coming from Canada (there is a 10 per cent measure for energy products), and Trump followed through on that threat, with tariffs taking effect Feb. 4.
(Mexico is also subject to a 25 per cent tariff, while China is at 10 per cent).
All along, Trump has been citing border security as the primary reason for the tariffs. He says there's fentanyl and violent people coming from Canada to the U.S. And while Mexico has far greater issues for border safety with the U.S. than Canada, we're getting the same treatment. (Of course, it's a lot easier for him to point the finger of blame at Canada than to address issues that exist within his own country.
Canada has spent over $1 billion in enhanced border security measures to appease Trump. It meant nothing. Maybe this isn't about border security. Instead, it's about Trump trying to flex his American muscle and show his supporters, and the rest of the world, that he can do whatever he wants because he's the president of the U.S.
Clamping down on border security also plays nicely to a significant portion of his base. He's found success with a fear-based message since his first presidential election campaign in 2015 and 2016.
Within hours of Trump's tariff move, Canada's government responded with measures of their own on a variety of products coming from the U.S.
The impact of the tariffs on Canada will be a lot greater than the U.S.; it's the reality of the economic pressures we're facing. They have nine times the population and a much larger economy than us.
At the same time, Canada had to do something. Regardless of whether Trump is going to impose additional tariffs or not because Canada had the gall to stand up to him, we had to do something.
One thing we can do is send a message by purchasing Canadian goods and services as much as possible. Yes, it will be tough to snub favourite foods, clothes and other goods from the U.S., but it's a step we might have to take for a while to support businesses that make our economy go.
If possible, it would be good for businesses to highlight Canadian goods, to help us with the decision-making process while shopping.
The next little while is not going to be easy. Trump's tariffs will have economic impacts. Economists are talking about the very real threat of a recession. It's going to hurt businesses, and there could be job losses. And because Canada's going to be imposing tariffs on American goods, we're going to be paying more for some items. Some price increases will be noticeable sooner than others.
We don't know how long this is going to last. Will Trump back down? Probably not, unless he faces fierce pressure from those within his own party, or if public opposition grows to the point where Trump can't ignore it. The idea of the tariffs might have seemed like a good idea when they were floated around during the election campaign, but public support might wane once the increased cost of living and supply chain issues become a reality, and Americans realize the trade deficit isn't as significant as Trump makes it out to be.
Will the tariffs end with a new prime minister, or if the Conservatives defeat the Liberals in the next federal election? Hard to say. The reality is these tariffs are coming in at a time of uncertainty in our country, as Justin Trudeau made the decision to step down at the same time this threat was looming.
Tariffs are here. It's an unfortunate reality. But at least we have things we can do to strike back.
