How tariff war will hit people-to-people relations

Flags of Canada and the US. / Pexels

More than “tariffs”, a war of attrition set in motion by both the US Administration and the Canadian government may fuel an unending socio-economic conflict that impacts people-to-people relations between two major trade partner nations.

Within hours of U.S. President Donald Trump making good on his tariff threat, declaring an economic emergency to impose a 25 percent tariff on Canadian goods and a 10 percent tariff on energy, including natural gas, oil, and electricity, his Canadian counterpart, Justin Trudeau, retaliated by chairing a Cabinet meeting with provincial and territorial premiers, and speaking with the President of Mexico, Claudia Sheinbaum, before imposing 25 percent immediate tariffs on American goods worth $30 billion.

Justin Trudeau announced that an additional $125 billion in duties on American products would follow in 21 days, allowing Canadian consumers and supply chains to find alternatives.

Justin Trudeau, who has already announced his decision to step down and not contest the ensuing federal elections, was joined by the Minister of Foreign Affairs, Mélanie Joly, the Minister of Finance and Intergovernmental Affairs, Dominic LeBlanc, and the Minister of Public Safety, David J. McGuinty while announcing the retaliatory steps.

The White House says the tariffs are being placed on Canada until it “cooperates with the U.S. against drug traffickers and on border security”.

“There is growing production of fentanyl in Canada, and enough fentanyl was seized at the northern border last fiscal year to kill 9.8 million Americans,” reads the statement posted to social media. “Additionally, illegal border crossings from Canada reached historic new highs every year for the last four fiscal years.”

Free Trade Agreements (FTAs) have become part of the history. Nothing will come across the borders with a duty tag on it.

The “tariff war” is expected to impact the people-to-people relations and movements across international borders as routine or household groceries done across the border would not be exempt from the new tariff order. Imports below that sum are now allowed to cross into the United States without customs and duties.

Hundreds of thousands of. Canadians shuttle across the international borders regularly for their routine requirements. With the “tariffs”, the vehicular movements, including those of truckers, would be adversely affected as the entry points on either side of the borders would be jammed awaiting customs clearances.

The order signed by Trump contained no mechanism for granting exceptions, the official said, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries.

The US President has been categoric in his statements that his country needs nothing from its neighbour though the United States imported 4.6 million barrels of oil daily from Canada in October last year, according to Energy Information Administration.

Cutting across their affiliations, leaders of various Canadian political outfits, both federal and provincial, have assailed the US move.

Ontario Premier and Progressive Conservative Leader Doug Ford, who has called for early provincial elections on this issue of the US tariffs, said in a statement that he was “extremely disappointed” by Trump’s actions, reiterating his support for a “strong and forceful response” by the federal government.

“I wish we were not here. I wish Ontario and Canada were working together with our American friends and allies to make our two countries the richest, most successful, safest, most secure on the planet,” said Ford. “Instead, President Trump has chosen to move forward with tariffs that will only hurt America and make Americans poorer. Canada now has no choice but to hit back and hit back hard.”

The Leader of the official Opposition party, the Conservatives, Pierre Poilievre condemned the “massive, unjust and unjustified tariffs on Canada’s already weak economy” in a press release. He reiterated his call for Parliament’s return, advocating for dollar-for-dollar tariffs, an emergency tax cut and other measures to support businesses, workers and the economy.

A similar call has been made by NDP leader Jagmeet Singh as he has urged the federal government to protect workers as it responds to the incoming tariffs from the U.S. 

“It is urgent that the government is ready to put financial help into the hands of workers who are impacted, and that we protect as many jobs as possible with a strong commitment to buy Canadian,” he said in a statement. 

Liberal leadership candidate Mark Carney, who had been a Governor of the Bank of Canada, issued a statement, calling the tariffs a clear violation of our trade agreements which require “the most serious trade and economic responses in our history.” 

“Canada will not bow down to a bully. We won’t stand by as illegal US tariffs hurt our workers and their families. As Canadians, we need to face this challenge as one united team,” said Carney.

“I support dollar-for-dollar retaliatory tariffs aimed where they will be felt the hardest in the United States but will have the least impact in Canada. At the same time, we need a coordinated strategy to boost investment and to support our Canadian workers through what will be a difficult moment.”