LOS ANGELES (OC).–President Don bmald Trump slapped Canada with an additional 10% tariff on goods coming from Canada for apparently running an ad using a 1987 speech on trade of President Ronald Reagan arguing for free trade, opposing the use of tariffs and other levies for foreign goods. Reagan said that tariffs punish companies and consumers alike for doing business with foreign competitors. Since taking office, Trump has practically stood on his head to level the playing field with Canada, the friendly neighbor to the north that routine makes selling U.S. agricultural and manufactured products, resulting in a trade deficit with the U.S. of $62 billion. Canadian Prime Minister Mark Carney has played hardball with Trump, refusing to lower tariffs on American products while, at the same time, railing against Trump’s 35% tariffs on Canadian agriculture and automotive goods.
Carney said publicly that he was ready “to continue to build on the progress we had been” making with the U.S. but was seeking new trade deal especially with Asian countries. Trump and Carney are attending the ASEAN trade summit in Singapore, Malaysia. Most of the tariffs on Canada are exempted under the existing free trade agreement that turns out to favor Canada over the U.S. Trump’s Canadian tariffs include a 50% on metals and 25% on automobiles, in addition to the new 10% tariff just because Trump felt insulted by the Canadian ad using the 1987 Reagan speech that sing the praises of free trade, knowing at the time, that Canada and Europe impose stiff tariffs on the U.S. Reagan talked about how tariffs hurt American companies and consumers, eventually leading to an economic downturn. Trump wanted Canada to level the playing field with the U.S.
On the sidelines of the Southeast Asian Nations [ASEAN] summit Carney said he was ready to continue the dialogue with Trump “We have a consistent focus in those discussions on doing the best deal for Canadian workers and their families,” Carney said, giving the same excuse for maintaining tariffs on U.S. products. Carney and his predecessor Justin Trudeau, feared that ending tariffs would swamp Canada with cheap American agriculture and automotive products, potentially hurting Canadian businesses and consumers. Carney said he would release an “ambitious budget that makes generational investments in Canada.” Carney also said he was “in the process of diversifying our trade relationships” with Asia and Europe. Canada’s Trade Minister Dominic LeBlanc said that “progress is best achieved through direct engagement with the U.S. administration.”
Ontario Premier Doug Ford said he would pause the ads during the World Series, knowing that the Toronto Blue Jays and Los Angeles Dodgers were battling it out for a world title. Whatever Reagan said in his anti-tariff speech, Reagan was actually trying to get Canada at the time to lower tariffs on American goods. Americans have always made it easy for foreign companies to do business in the United States, despite the heavy tariffs imposed by Canada, European and Asia. Using an American conservative icon for an ad against Trump tariff policy went over the top, especially playing it during the World Series. “Tariffs of any level remain at tax on America first, then North American competiveness as a whole,” said Canadian Chamber of Commerce president Candace Laing. Canada has no problem tariffing the U.S. but rant about Trump’s Canadian tariffs.
When it comes to a $62 billion trade deficit with Canada based on $917 billion in trade, the U.S. has a $236 billion deficit with the EU on $1.5 trillion in trade. Getting to a level playing field with tariffs makes trade next to impossible especially in industries like the beverage industry where California wine has has difficult time breaking into the EU market. Trump had a lot of work to do trying to reduce trade deficits and level the playing field with Canada and Europe. Carney has not taken Trump’s concerns seriously, maintaining high tariffs on U.S. claiming they protect Canadian businesses and workers. Ontario Premier Doug Ford and Calif. Gov. Gavin Newsom agreed to keep American whiskey in Canadian liquor stores. Newsom promised to send Ford “California’s championship-worthy wine” if the Toronto Blue Jays beat the Los Angeles Dodgers.
Canadian President Mark Carney and Ontario Premier Doug Ford made a mistake using conservative icon Ronald Reagan to refute Trump’s trade policy. Democrats and the fake news don’t like to talk about the whopping trade deficits with Canada and the European Union. Instead of fighting with Trump, Canada should work to reduce or end the unfair tariff practices that have locked American farmers and business out of Canadian markets. Canada has had open access over the years to the mighty U.S. economy but not true for American companies. Trade protectionism has been Canada’s way to of defending business and consumers. But when you look at what’s right when it comes to tariffs, Trump has logic on his side. Canada can do more to respond to Trump concerns, at least showing that he take U.S. trade deficits seriously as the consider lowering tariffs.
About the Author
John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He’s editor of OnlineColumist.com and author of Dodging The Bullet and Operation Charisma.
