Canada Awoke Disappointed and Ignorant of Donald Trump's Actions
Unraveling the Canada-U.S. Brouhaha
Toronto (Canada), 2 Feb (EFE).— Canadians are left puzzled and outraged as the U.S., once considered the most successful ally, has elevated tensions to the brink of an unwanted trade war. The sudden escalation, orchestrated by President Donald Trump, threatens to shatter a long-standing bond that dates back to the days of cousins.
So, how did the relationship between these neighboring nations, sidestepping seemingly insurmountable hurdles until yesterday, reach the point of no return? Is it the 20 kilograms of fentanyl intercepted from Canada, or the endless trade deficit debates?
It sure can't be the latter, because if you peel off the numbers from oil, gas, and electricity sales, the U.S. still maintains a surplus with Canada.
Yet, Trump persists in asserting that the U.S. “subsidizes” Canada with “hundreds of billions of dollars,” urging Canada to become the 51st state of the U.S. on his Truth Social platform.
These tariffs, imposing 25% duties on Canadian cars, steel, and aluminum, are seen by Canadians as an existential threat.
In response, Foreign Minister Mélanie Joly shared her dismay on social media, stating, "These tariffs are totally unjustifiable, and Canadians are united in the face of this economic threat."
Official tariffs on U.S. products, set to take effect starting Tuesday, could potentially escalate trade hostilities, a move Trump warned against on Sunday.
The Canadian populace has also begun to voice their outrage, with the booing of the U.S. national anthem at a National Hockey League (NHL) game in Ottawa, and lists of U.S. products removed from shopping lists circulating on social media.
Political groups across the country are urging Canadians to purchase "Made in Canada" products instead of their neighbors' goods. Moreover, numerous provincial governments have announced restrictions on American companies competing for public contracts and have ordered the removal of American alcoholic beverages from their shelves.
Some voices propose imposing tariffs of 100% or more on Tesla vehicles, while others contemplate the possibility of Canada joining the European Union.
The search for understanding has led to questions about Canada's potential alliance with the European Union, with concerns about geographic, legal, and political barriers looming large. Instead, Canada might focus on expanding existing partnerships or advocating for multilateral trade frameworks as a counterbalance to aggressive U.S. policies.
As Canada's public broadcaster, CBC, wondered on their website: "With its alliance with the U.S. under pressure, could Canada join the EU?" EFE
The Ins and Outs of the Tariff Tussle
- Retaliatory Measures: Canada's tariffs on U.S. goods, such as whiskey and agricultural products, are politically painful.[4]
- Market Uncertainty: Prolonged tariffs have destabilized stock markets (e.g., Dow Jones fluctuations)[3].
- Policy Friction: The U.S.'s demands for renegotiating agreements beyond USMCA terms risk dismantling long-standing trade norms[3][5].
Economic Consequences for Canada- Sectoral Struggles: Automotive and manufacturing sectors in Ontario face direct risks. U.S. tariffs could lead to a 1.8% decrease in trade volumes, but alternative markets absorb only 15% of losses.[5]- Macroeconomic Risks: A high-impact scenario (50% U.S. tariffs on autos/steel) may prompt a 75-basis-point cut in interest rates, a 3-cent weakening of the Canadian dollar against the USD, and a $9 drop in oil prices.[5] In conjunction with a possible U.S. recession, these factors could destabilize Canada's economy.[5]
- The tariffs imposed by the U.S. on Canadian cars, steel, and aluminum are seen as an existential threat by the Canadians.
- Foreign Minister Mélanie Joly has expressed her dismay over these tariffs, stating that they are "totally unjustifiable."
- In response to the U.S. tariffs, Canada has imposed tariffs on U.S. goods such as whiskey and agricultural products, which are politically painful.
- Prolonged tariffs have led to market uncertainty, causing fluctuations in stock markets, such as the Dow Jones.
