Now it is the turn of trade war… Trump’s decisions may prove costly for America, Canada has prepared to retaliate
As soon as Donald Trump took power in the country, he started taking steps to implement the policy of ‘America First’. Trump has announced that he will impose a 25 percent tariff on goods coming from Canada and Mexico. The reason behind imposing the tariff is said to be to stop illegal migration and drug trafficking.
This decision of Trump has added fuel to the fire amid the ongoing tension between Canada and America. Canadian Prime Minister Justin Trudeau and Alberta Province Chief Minister Daniel Smith are aggressive in responding to this decision of Trump. Ontario Chief Minister Doug Ford has made it clear that now there is every possibility of a trade war. All three leaders are claiming that Canada has reserves of power and essential minerals. If Trump has to fulfill his promise of a ‘booming’ American economy, then he needs us.
Trade war has been declared
Even before taking oath, Trump has made many comments about Canada and Trudeau. On his announcement of tariff, Ontario Chief Minister Doug Ford said that there will definitely be a trade war between Canada and America. If a trade war starts between the two countries, it will not be good for the economy of both the countries and China will directly benefit from it. Even though Trump may think that America will not suffer any loss by imposing his tariff, but it is not so.
America imports things on a large scale from Canada and Mexico. Deterioration of relations with both the countries can backfire on America.
What does America import from Canada?
Canada is a supplier of Machinery and Transportation, Mineral Fuels and Lubricants, Manufactured Goods, Miscellaneous Manufactured Goods, Food and Live Animals, Chemicals, Other Goods, Raw Materials and Beverages and Tobacco to the US.
According to data from the US Trade Representative Office, US trade with Canada was around 908.9 billion in 2022. In which exports were 427.7 billion and imports were 481.2 billion.
Canada’s resolve
From the stance of Canadian leaders, it seems that Canada has resolved to take every step to protect its economic interests. Ontario Chief Minister Doug Ford said in an interview with the Associated Press, “We are going to use everything in our tool box to protect our economy.”
Trudeau said Canada would retaliate if necessary, but he also said Canada has faced a similar situation before during Trump’s presidency and later successfully renegotiated the free trade agreement.
Ford has said that as soon as Trump imposes tariffs, he will instruct Ontario’s liquor control board to remove all American-made liquor from the shelves. US-Canada relations are important to both countries. Increased tensions with Canada will make it difficult for Trump to move the US economy forward.
