Trump Tariffs and Canadian Trade Policy

I once visited an old work colleague who went into business for himself after the company to which we had both worked had folded up. His factory seemed a thriving place. However, there was flaw in the business model. His company had only one customer.

I recall reading about suppliers in the Great Depression, whose only client were Simpsons or Eaton’s. These flagship department stores had such greater leverage over their suppliers that they could literally dictate the price that they were willing to pay.

This lesson, learnt in adolescence, never left me. When I became self-employed as an IT consultant, I had six main clients bringing with roughly equal revenues, such that the business could easily survive the loss of one or two clients.

All my life, Canadian politicos have permitted this nation’s economy and, indirectly, this nation’s sovereignty to be vulnerable to the caprice of American dictates. Currently, three quarters of our exports flow to the U.S., with exports constituting a third of our economy. In effect, over 20% of our economy currently involves exports to the U.S. Only 1.64% of the U.S. economy involves exports to Canada. While the collapse of all trade would not result in the same degree of decline of GDP, that is one whopping economic leverage.

But while Canada has been vulnerable to the caprice of American dictates, only on rare occasions has this become a real crisis of modest proportions. We have generally benefited from the goodwill and prudence of multiple administrations since WW2. And when crises of modest proportions have occurred, it has been the policy of Canadian politicos to placate the U.S.

But as America has become a hubristically evil and unjust nation, we can no longer count upon the goodwill and prudence of their politicos. Nor has this nation the military and economic might, in of itself, to fight against the American behemoth, as impressive as the recent chutzpah and bravado may have been. Moreover, as one Globe and Mail pundit put it, kowtowing to Trump’s narcissism and rapine will only encourage more predatory feints.

This nation is left with but one alternative, which should have been deployed many decades ago. Considering recent articles, it was apparently known that it should have been deployed many decades ago. But most of us became comfortable and complacent while delusionally ignorant of America’s rapid moral decadence.

Considering the treatment of Americans towards their own nation kin, why should foreigners expect to be treated any better?

Canada must stop playing in the same sandbox as the Bully of the sandbox. Our trade must circumvent the Americans. Let us strike a balanced deal with the Japanese, Koreans, and/or Germans: An Auto Pact in exchange for the type of goods that the Americans are tariffing (i.e. aluminum). Place a cease and desist on all American car plants in this country and end all purchases of their cars. Most of our automobile employees will be transferred to the new Japanese, Koreans, and/or Germans plants that are built here. Car part plants are to be redirected towards these new auto chains. Lose the Americans.

It goes without saying that pipelines need to be built pronto to both east and west coasts. This may violate long-term Green mandates. However, we should consider that the prices that the oil companies will be receiving will be higher than those through the present American throttle. Herein lies opportunity to charge a Carbon Tax windfall upon the variance. If such a policy is not rapacious, these oil companies have nothing about which to complain.

Introduce 100% tariffs on all subscriptions from the U.S. (i.e., Netflix). Allow for the recovery of tariffs on income tax returns, but for only one American subscription service.

Place a cease-and-desist order on X (a.k.a. Twitter) and Meta. Surely, it cannot be that difficult to replicate Musk’s X in conjunction with the Europeans, Latin America, and the Orient.

Place a $100 per person per visit tax on all recreational trips to the U.S. Eliminate all fees on recreational trips to all other relatively safe destinations in the world, even grant a subsidy if one member of a family learns (not already knew) the language of the place they are visiting. For if this nation hopes to diversify its trade relations, it is going to need a people who can speak the languages of those with whom we intend to trade.

Consider joining BRICS. Trade with the Europeans in Euros (if we are not already doing so), the Japanese in Yen, the Chinese in Yuan. In truth, the value of the Canadian dollar has been more stable vis-à-vis these other currencies than it has been with the U.S. dollar for some time.

Circumvent the American Reserved Currency system as best we can. For the Americans have long exploited and abused their Reserved status, such that it has finally provoked much of the world out of their dormant stupor.

Europa could strike a financial accord with the Chinese and erect a new Reserved Currency, the Euro-Yuan, which would have the advantage of requiring dual consent for policy moves, much like the Roman Republic’s consulship system. However, this would also require European boldness in doubling defense spending or more in order to lose the American military. (Just floating a long-held notion of unknown merit.)

There are many ways to aggressively circumvent trading with the Bully of the sandbox in order to reach a goal wherein 25% or less of our exports go to the Americans, giving them far less economic leverage over us. But it requires the end of a comfortable complacency. A thoughtful and steadfast, all-party pursuit of national economic independence and the end of our branch-plant mindset has become clearly necessary.