Trade relations have reached an all time low amid ongoing trade battles between Canada and the United States. U.S. President Donald Trump has introduced a 25% tariff on imports of steel and aluminum from Canada. This change, now in effect as of April 1, has brought alarm over possible economic impacts, with fears of an impending recession among them. Canada’s Foreign Minister Mélanie Joly has had a tumultuous few months, but she is undaunted. She is convinced that Canada can and will win this trade war.
President Trump started the trade war in earnest with a round of tariffs on imports. These tariffs help to strengthen U.S. manufacturing, support American jobs, and kickstart economic growth by raising tax revenue. These arbitrary measures have already put thousands of American and Canadian jobs at risk on both sides of the border. The United States and Canada’s economies are inextricably linked, causing enormous ripple effects to both U.S. Trump has called out Canada, Mexico, and China for trade abuses. He says they are failing to do enough to stop migration and illegal drug trafficking across their borders into the United States.
Specifically, on April 2, President Trump made a very ambitious announcement. He announced plans to slap $60 billion worth of new “reciprocal” tariffs on Canada, further ratcheting up the trade war. This action is consistent with his more general economic approach that consists of slapping tariffs on other countries worldwide. The tariffs are the very foundation to his vision of advancing a domestic manufacturing base and protecting American jobs.
In response to these developments, Canadians have adopted the slogan "elbows up," signifying their determination and resilience in countering the U.S. tariffs. International Trade Minister Mary Ng honed in on Canada’s newfound upperhand in negotiations. She further noted that the deep integration of the U.S. and Canadian economies provides Canada with tremendous leverage.
"elbows up" – Canadians
Exacerbated by the ongoing trade war, the issue of asylum seekers will continue to remold Canada’s political landscape. This is even more the case as the federal election period approaches. According to leaks, their Prime Minister Mark Carney is about to call a snap election. In the coming years, trade relations may be one of the most salient issues for American voters.
Trump will not rule out the possibility of a recession as a result of his own trade policies. This position further increases the clouds over the economic horizon. As both nations brace for the impact of these tariffs, businesses and workers in industries reliant on cross-border trade remain in a state of apprehension.