Posted on 04/27/2025 9:30:59 PM PDT by SeekAndFind
Canada has one of the most protectionist economies among developed nations. It particularly targets American farmers, media, and manufacturers. That may be why Donald Trump launched his counterattack on trade offenders with a 25% tariff on many imports from Canada and Mexico, and 10% on Canadian energy.
Unhelpfully, Trump claimed authority to do so under the International Emergency Economic Powers Act because of an “extraordinary threat” posed by “unchecked drug trafficking.” The White House failed to explain how this applied to Canada. And, while his goals are entirely correct, his April 2 “Liberation Day” global strike, imposing 10% baseline tariffs on almost all nations, and so-called reciprocal tariffs on friends and foes alike, roiled markets and aligned the world against us. That’s why Trump rapidly retreated, suspending reciprocal tariffs, except for China.
Clever countries are waging trade war on us. Despite this, America has the world’s strongest economy. Except where there are national security considerations that mandate pulling our punches, the U.S. can win every time – if we play chess, not Rock ‘Em Sock ‘Em Robots. When it comes to using tariffs as a weapon, Trump should focus on two or three targets at a time, take them down, and then move on to the next. I nominate China, the European Union (see here) and Canada.
Canada is our largest individual export market, and while it may not be a threat to American health, it is an adept abuser of free trade. According to the U.S. Census Bureau, exports of goods to Canada in 2024 were about $350 billion, and imports about $413 billion, for a deficit of $63 billion, though U.S. services reduce the deficit by about $10 billion. In January, the goods deficit grew to an annualized rate exceeding $140 billion.
When Trump met with Canadian prime minister Mark Carney a few weeks ago, he avoided the undignified trolling to which he had subjected Justin Trudeau, and observed that “I think things will work out very well between Canada and the United States.” Still, Trump singled out Canada on Liberation Day, criticizing its tariffs on agriculture, and claiming that the U.S. subsidizes our neighbor by almost $200 billion a year. Nonetheless, Trump imposed no additional tariffs on Canada.
Canada will shroud itself in this miasma and continue to play the victim. It’s an act. Canada takes care of Canada.
While Canada’s businesses and citizens benefit from almost unfettered access to the United States, it limits our access through “made-in-Canada” requirements, standards that generally can be met only by natural resources in Canada, and financial support available only to Canadians. Even its offer last week to rescind tariffs on U.S. automakers was conditioned on further investment in Canada. Canada looks out for Canada.
One of the most enduring trade disputes involves subsidies Canada provides to its softwood lumber industry. Last year, the Biden administration raised tariffs on imports of Canadian softwood lumber from 8.05% to 14.54%.
Recently, Canada banned most foreigners from purchasing Canadian residential property. Numerous provinces also impose additional property taxes on foreign property owners.
The U.S. Trade Representative’s report on Foreign Trade Barriers and the International Trade Administration website cite numerous obstacles imposed by Canada, including:
Canada also offers tax credits, loans, and subsidies to companies and projects owned by and hiring Canadians. For example, subsidies for film and television production utilizing Canadian directors, writers, and actors have allowed Vancouver and Toronto to challenge Los Angeles and New York, and pull ahead of Atlanta, while providing Canadian actors life-long advantages.
By contrast, the U.S. has long been hospitable to Canadian investment, goods, and people. Canadian headquartered or owned businesses that are well known in the U.S. include Burger King, Lululemon, Canada Goose, TD Bank, MAC Cosmetics (until being sold), Saks Fifth Avenue (spun off in 2024), Shopify, Rumble, and Pornhub. The Wikipedia list of prominent Canadian-Americans is 35 pages. Most spent their lives in the United States, which accorded them the economic opportunities available to all Americans.
Canada’s trade barriers reduce our GDP by less than 1% but boost Canada’s economy by considerably more. The challenge is to work with Canada to eliminate its barriers over a period that won’t rock the Canadian economy. But if that effort hits a wall, the administration would be obligated to protect Americans by rolling out properly computed and targeted reciprocal tariffs and non-tariff measures.
Canada may be able to beat the U.S. in hockey, but despite its bellicose tone, it can’t win a well-fought trade war.
Kenin M. Spivak is founder and chairman of SMI Group LLC, an international consulting firm and investment bank. He is the author of fiction and non-fiction books and a frequent speaker and contributor to media, including RealClearPolitics, The American Mind, National Review, television, radio, and podcasts.
The American Women’s Hockey Team beat the Canada team last week.
CanaDuhhhh
this be the work of the belligerent Canadian socialists in control — and of course they don’t GAF about their fellow Canadian citizens
Just like socialistas in other countries don’t.
exactly!
Well duh!!!!
A country 10 times smaller than giant neighbor.
No doubt the are arrogant in their ignorance. They’ve lived under America’s military umbrella all their lives. They’ve lived under the American economic umbrella forever. Canada is still the hewer of wood for the us with regard to it’s resources.
Most of the Pierre Trudeau Marxists don’t get it. Simple economics. When America does well Canada’s markets out perform by 18%, when America hits the ditch it does 18% worse. If Canada wasn’t across the border, it’d be another Venezuela.
Me? I love a strong America! Long live President Donald Trump! All hail the king!
Do they think we want to become their 11th province?
Canada Shmanada
Then their "fellow Canadian citizens" need to vote them out.
I suggest we close ALL border crossings with Canada from 1 Oct - 1 May.
Let the Canadian Snow Birds FREEZE THEIR DUMB ASSES OFF every winter.
US Canada trade is governed by the USMCA.
Canada has abused and cheated on the USMCA
That trade agreement is up for renewal or renogiation next year.
China uses Canada to get around the USMCA.
China sends Material to Canada, Canada performs minimal further processing, then sells into the US.
That, was never the goal of the USMCA
If President Trump stikes a tariff deal with China, the China+Canada screwjob prolly goes away
Carnival or Poilievre have very little say in this matter
Kenin M. Spivak, a highly regarded executive, entrepreneur, financier, author and attorney, is the founder, chairman and CEO of SMI Group, a Los Angeles-based company that forms and grows businesses worldwide, and owns a fully licensed SEC-registered investment bank. Kenin has served as chairman, vice chairman, president, CEO, director and senior advisor for public and private companies in Asia, Europe, North America and the Middle East, including: major studio MGM/UA Communications; hair care leader John Paul Mitchell Systems; independent film production/distribution company Island World; leading radio network Premiere Radio Networks; Patrón tequila; and the MGM Grand Hotel in Las Vegas. As a top studio executive, Kenin has selected and supervised the development, financing, production and distribution of hundreds of feature films, including multiple Academy Award-winning features and long-running television series; and has earned multi-national companies billions of dollars of worldwide sales and operations in more than 30 countries. - IMDb Mini Biography By: Stratagem Official Site Bio
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I never liked Canada. My aunt married a guy from Canada. Big asshole.
OOOOh! Where is the Maple Leaf Canadian Nice?
Canada? Trump started this trade war.
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