"The Tariff Tug-of-War: Why a 25% US Tariff Could Reshape Canada’s Trade Future"

By Dale Jodoin Canadians are fuming over the news of a 25% tariff being imposed on Canadian goods by the United States. The move, announced by the US President, is being interpreted by many as an attack on Canada. But is this really about destroying Canada’s economy, or is there a bigger picture to consider? Let’s break it down in simple terms to understand what’s happening and why it matters. The current US President approaches politics like he approaches business. For him, it’s all about fairness and ensuring that no side has an undue advantage. From his perspective, tariffs like this aren’t meant to punish Canada—they’re meant to equalize the playing field. Here’s the issue: Canada’s dollar is weaker than the US dollar, which means Canadian manufacturers can sell goods to Americans at a cheaper price than US manufacturers. This isn’t just about competition—it’s about fairness for American workers who feel they’re being undercut by cheaper imports from Canada and Mexico. Canada’s lower dollar has been a deliberate strategy by some policymakers. By keeping the dollar slightly devalued, Canada gains a competitive edge over both the US and other trading partners like China and Mexico. This allows Canadian goods to be priced more attractively in foreign markets. However, this strategy creates a significant trade imbalance. The US has a massive trade deficit with Canada, meaning Americans are buying far more from Canada than Canadians are buying from the US. In the eyes of the US President, this is unsustainable and unfair to American workers. Many Canadians are asking, “Doesn’t free trade mean equal prices for manufactured goods?” The answer is more complex. Free trade is supposed to create open markets, but if one country’s currency is devalued, it can tilt the scales in favor of that country. The US President sees this imbalance and is trying to correct it. His tariffs are aimed at encouraging Canada to rethink its policies and create a fairer system where both Canadian and American workers can thrive. The tariffs are not just about trade; they’re also tied to larger issues like the fentanyl crisis and border security. The US has accused Canada of not doing enough to stop the flow of fentanyl into the US. This deadly drug has devastated communities across America, and the President wants Canada to take stronger action. Additionally, the US has long criticized Canada’s lax border policies, especially under the current Liberal government. While Canada prides itself on being open and welcoming, this has created security concerns for its southern neighbor. The US President sees these issues as interconnected and wants Canada to step up. Instead of being angry at the US, Canadians might want to take a closer look at their own policies. Are we truly playing fair when it comes to trade? Could we compete on an equal dollar with the US? Many believe that Canadian manufacturers produce some of the best goods in the world. If that’s true, then why not level the playing field and prove it? Rather than pointing fingers, Canada and the US need to work together to create a more balanced trade relationship. This could involve: Adjusting Currency Policies: Finding a middle ground where the Canadian dollar isn’t deliberately devalued to gain a competitive edge. Strengthening Border Security: Addressing US concerns about fentanyl and border issues could improve trust and cooperation. Promoting Mutual Growth: Encouraging policies that benefit workers in both countries rather than pitting them against each other. It’s easy to get upset when policies like tariffs seem to target Canada, but it’s important to look at the bigger picture. The US President isn’t out to destroy Canada—he’s trying to ensure fairness for American workers. Instead of focusing on the negatives, Canada should seize this opportunity to prove that it can compete on a level playing field. With strong manufacturing, skilled workers, and innovative industries, Canada has what it takes to succeed. By addressing the underlying issues and working with the US, both countries can build a stronger, more balanced trade relationship that benefits everyone. So, instead of anger, let’s focus on solutions. How can we make trade between Canada and the US fairer and more beneficial for both sides? That’s the question we should be asking.