United States—Canada trade relations have taken an astonishing turn for the worse. Over the weekend, President Donald Trump made headlines by tweeting about raising tariffs on goods imported from Canada.… The Ontario government played its own anti-tariff ad. It even had a direct quote from the former U.S. President Ronald Reagan himself, on the negative impacts of tariffs, which he said “hurt every American.” The ad triggered the biggest, most personal response—to date—from Trump. He further condemned Ontario for seeking to “interfere” with “THE MOST IMPORTANT CASE EVER” that the U.S. Supreme Court is likely to hear this fall.
Ontario is home to the majority of Canada’s automobile manufacturing sector. U.S. tariff policies have hit the region especially hard. Today, nearly four-in-five Canadian exports go to America. Trump has upped the ante in recent weeks, imposing new tariffs atop existing levies. This includes a large 35% tariff on all Canadian products, in addition to specific taxes of 50% on metals and 25% on cars.
In light of these escalating tensions, Ontario Premier Doug Ford announced that he would pause the province’s anti-tariff advertisement campaign in the U.S. Ford’s decision was influenced by discussions with Canadian Prime Minister Mark Carney. They intended to accelerate trade negotiations between the two countries.
“Here’s to a great World Series, and a tariff-free friendship between Ontario and California.” – Gavin Newsom and Doug Ford
Trump’s attacks were especially sharp since he called the Ontario advert a “scam.”…not too pleased to learn that Canadian officials hadn’t already gotten rid of the billboard before his beloved World Series baseball championship appeared. Earlier this month, during his trip to Malaysia, Trump officially announced that he will not be meeting with Prime Minister Mark Carney. This new decision only further complicates their diplomatic relations.
Whether Trump’s tariffs are constitutional or not will be decided in the next Supreme Court case that the justices will hear on this topic. This injustice has galvanized the passion and outrage of citizens on both sides of the border. Even Trump admitted these tariffs would only increase his costs at the border by a few dollars. Yet, he argues, the possible rewards more than make up for this expense.
The tension on U.S.-Canada relations is at a boiling point. This tension reveals deeper issues with trade policy, particularly glaring as Trump has championed high tariffs on imports from our largest trading partners. As things stand now, Canada remains the only G7 country without a trade agreement with the U.S. This has been the case ever since the tariffs were put in place.
As trade talks remain stalled, many Canadian officials express concern over the future of bilateral relations and the impact of tariffs on industries vital to both economies. The Ontario government has promised to suspend their province-wide advertisement blitz. They hope that this step will encourage constructive discussions and collaboration to find solutions to ongoing trade conflicts.