President Trump has seen fit to impose tariffs on Canada, Mexico and China.
The main reason for this is that Trump thinks trade deficits are bad things and something about fentanyl and illegal immigrants.
The United States is merely a net importer of goods. This is not a bad thing. What is a bad thing is unilaterally deciding to revert to 19th century mercantilism in an attempt to tax his way to prosperity.
No one win with tariffs. Canada, Mexico and China will suffer. So too will the United States. With importers facing heavier costs those costs will be passed onto consumers in the form of higher prices and workers in the form of fewer jobs. The result will be a global recession.
Trump has acknowledged that Americans will feel the pain of tariffs. It would be a self-inflicted wound but Trump will feel nothing so the policy will continue until he gets bored or leaves office.
It is fascinating to see conservatives defend protectionism. After all it was President Reagan and Prime Minister Mulroney who embarked upon free trade between the United States and Canada. Free trade was a mantra for conservatives. It still is for Canadian conservatives. But free trade is yet another principle which Trump has railroaded and conservatives have fallen in line.
Trump’s tariffs will unite Canada’s political parties at least temporarily. It is clear Trump does not respect Canadian sovereignty with his repeated talk of Canada becoming the 51st state. Never mind that Canada has 10 provinces and 3 territories. Trump doesn’t appreciate how deep rooted anti-Americanism is in Canadian society. Some of that sentiment is counterproductive but Trump is doing everything he can to show himself as the ugly American. Trump may find he has underestimated an ally he can ill-afford to anger.
In so doing, Trump might also anger his fellow Americans when they arrive at the conclusion that tariffs aren’t great.
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