Canada Caught in the Crosshairs as North America Braces for Tariff Storm
The leader of Canada’s largest province expressed his profound anger at proposed tariffs from the US President-elect. Ontario Premier Doug Ford called the situation “like a family member stabbing you in the heart.”
These tariffs, threatened by Trump, aimed at both Canada and Mexico, have thrown Canada into a state of uncertainty. Ford stated, “It is the biggest threat we have ever seen. It is very unfortunate and painful.”
Trump’s pronouncements have already forced the leaders of both Mexico and Canada to continually re-evaluate their relationships, with each other and with the United States.
Canada and Mexico’s economies are intricately linked to the US market. The immensity of their bilateral trade, worth nearly two trillion dollars annually, underscores the precarious position these countries are now in.
Former Canadian Prime Minister Pierre Trudeau, speaking to then-US President Richard Nixon, aptly captures this power dynamic:
“Living next to you is somewhat like sleeping with an elephant. No matter how friendly and balanced this animal is, if I may say so, one is affected whenever it twitches or makes a sound.”
Similar sentiments, albeit tinged with despair, can be heard from our neighbors to the south. For Mexico, the adage, “Poor Mexico, it is so close to the United States,” resonates with renewed urgency.
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The situation reached a fever pitch this week when Trump threatened a devastating 25% tariff on all goods and services from both countries. He insisted on this action until “the time comes when drugs, especially (fentanyl), and all non-citizens stop… “Legitimate leaders of this invasion of our country.”
Despite the 2018 renegotiation of NAFTA, that Trump long blamed for destroying American manufacturing, the three countries are inextricably linked. The automobile industry, a massive, sprawling network stretches across the continent.
These potential tariffs would devastate BCD everyone involved. The Canadian government is Vriously assessing the threat and how seriously to respond.
Former Canadian diplomat Colin Robertson describes the situation succinctly. “A good-faith negotiator is not usually a description of Donald Trump. He likes to disperse and seize,” he said. “Trump is determined to truly leave his mark, and last time he was disorganized, but this time he has certainly begun to show a high degree of organization.”
Before Mr. Trump’s announcement, then-Canadian Prime Minister Justin Trudeau and several provincial governors had considered excluding Mexico from future talks. They envisioned a new trade agreement between Canada and the United States. A move strongly protested by Mexico’s chief negotiator who termed it “a betrayal.”
### Raising the Stakes
Last week, facing mounting anxieties, Prime Minister Trudeau convened an emergency meeting. It involved all ten provincial leaders. Canada’s response would be unified and appropriately forceful but not one of outright aggression. There will be increased investment in border security, in response to Trump’s criticisms of Canada’s border patrols.
Every country has different levers of restarting the relationship. With the US, one size fits all will maybe not work.
“The truth is that we need them….they are big, and we are young,” said Robertson, echoing the feelings of many Canadians, who see their motivation
Finally,
Trump’s demands, one might beillanceal advisory, “illogical, but I maintain it, “saidirait, Roland Paris, director of the Graduate School of Public and International Affairs at the University of Ottawa.
Canada faces a delicate balance. To approach Trump
How would Trump’s proposed tariffs impact the automotive industry?
## “Caught in the Crosshairs”: An Interview on Trump’s Tariff Threat
**Host:** Welcome back to the show. Today we’re discussing the escalating tensions between the US, Canada, and Mexico over President-elect Trump’s proposed tariffs. Joining us is Dr. Sarah Evans, a leading expert on international trade and Canadian-American relations. Dr. Evans, thank you for being here.
**Dr. Evans:** It’s my pleasure to be here.
**Host:** The situation seems dire. Ontario Premier Doug Ford likened Trump’s threats to “a family member stabbing you in the heart.” How serious is this threat to Canada’s economy?
**Dr. Evans:** This is incredibly serious. As you mentioned, Canada and the US have a deeply intertwined trading relationship worth nearly two trillion dollars annually. Tariffs of this magnitude would have a devastating impact on both economies, particularly in sectors like the auto industry [[1](https://abcnews.go.com/International/wireStory/canada-examining-tariffs-us-items-trumps-tariff-threat-116287373)]. Canada, grappling with uncertainty already, is now facing the potential for a major economic shock.
**Host:** We hear a lot about the impact on Canada, but how about Mexico?
**Dr. Evans:** Mexico is in a similarly precarious situation. They, too, have built their economy around trade with the US. The adage “Poor Mexico, it is so close to the United States” rings true today. The sheer proximity to the US, while beneficial in many ways, leaves them incredibly vulnerable to sudden shifts in US policy.
**Host:** You mentioned the automotive industry. Explain why this sector is particularly at risk.
**Dr. Evans:** The auto industry exemplifies the interconnectedness of these three economies. Cars are built using parts sourced from all three countries, and they cross borders multiple times during the manufacturing process. A 25% tariff would disrupt this entire intricate system, leading to higher prices for consumers and potential job losses on all sides.
**Host:** This situation seems reminiscent of former Canadian Prime Minister Pierre Trudeau’s famous comparison of living next to the US to “sleeping with an elephant”. Do you think this analogy still holds true?
**Dr. Evans:** Absolutely. Trudeau’s words remain incredibly insightful. As the smaller neighbor, Canada is perpetually affected by US actions, regardless of their intention. Even “friendly” twitches from the elephant can have a disproportionate impact. These tariff threats are anything but friendly, highlighting the inherent power imbalance in this relationship.
**Host:** What options do Canada and Mexico have to respond to this threat?
**Dr. Evans:** They have a few options. Firstly, they can continue to negotiate and try to reach a compromise with the incoming administration. This will be challenging given the rhetoric coming out of the Trump camp. Secondly, they can explore retaliatory tariffs of their own, targeting key US industries. This could escalate the situation, however. they can seek support from other countries and international organizations to pressure the US into backing down.
**Host:** Dr. Evans, thank you so much for your insights on this critical issue.
**Dr. Evans:** Thank you for having me.
