Despite the Americans pausing trade tariffs on Canadian goods, hockey fans have expressed their displeasure by booing the American anthem during several sporting events between Canadian and American hockey tournaments across Canada for a few weeks.
According to Prime Minister Justin Trudeau, Canadians do not want to engage in a trade war with the United States, but they will be “equally unequivocal” in their response if the U.S. enacts its threats of tariffs in the coming weeks.
This is why the Canadian government decided to impose a 25 percent tariff on $30 billion in goods imported from the United States (U.S.) on the first days of February..
But on February 3, U.S. and Canadian officials met and the U.S. agreed to delay the deal on tariffs for 30 days. Following that delay, Canada implemented a $1.3 billion border plan to reinforce the border and to coordinate with U.S. partners to stop the flow of fentanyl.
But the looming tariff threat is still very real in the Canadian economy and across Canada, thousands of jobs are at risk.
We have to remain vigilant and brace for impact. Already we’ve heard from members across Canada how the threat of tariffs is disrupting local businesses and economies. This new data (trade war) further emphasizes that this is not a game we want to play when so many livelihoods depend on a stable relationship with the U.S., said Candace Laing, President and CEO of the Canadian Chamber of Commerce.
To determine the risk level of the 41 largest cities in Canada, the Canadian Chamber of Commerce developed with the Business Data Lab a U.S. Tariff Exposure Index that reflects both a city’s U.S. export intensity and its dependence on the U.S. as a key export destination. Tariff Exposure index examine the top 10 most exposed economies alone, and certain key themes and impacts emerge:
Key energy exporters such as Calgary, Alberta, and Saint John, New Brunswick.
Several cities in Southwestern Ontario’s auto and manufacturing hubs are located along the 401 Highway.
Canada’s largest steel producer, Hamilton, Ontario.
Quebec’s aluminum and forestry producers, Saguenay and Trois-Rivières.
President Trump’s proposed tariffs will have significant consequences for the global economy — but for some of Canada’s cities, the threat is far more local and personal. With this analysis, Canadians, businesses, and policymakers have more evidence to inform ongoing discussions about how Canada can best respond to the monumental challenge brought by unnecessary and unjustified U.S. tariffs, said Stephen Tapp, Chief Economist, Canadian Chamber of Commerce.
In Canada, no one knows at this point whether Trump will go ahead with his punitive tariffs on Canada. But everyone knows this move from the Americans will risk a continent-wide trade war. It seems like the Canadians don’t have a special case in Washington anymore, and the mutually beneficial relationship between Canada and the United States that goes far back to 1850 is now in jeopardy.
David J. Bercuson, a senior fellow at the Aristotle Foundation for Public Policy, who recently published the article Canada must prepare for a future without the United States explains in the National Post:
The people of the United States chose Trump, and Canadians must respect their decision. We do not know at this point if we will soon be entangled with the United States in a trade war. But we do know this: our trust has been broken. We must accept that bald truth and proceed from here.
