By J André Faust (Nov 10, 2024)
It is puzzling why Trump seems to garner so much support from some Canadians. This sentiment echoes from the streets, coffee shops, and across social media. At first glance, it seems illogical: first, as Canadians, we don’t have a vote in the United States; and second, his protectionist policies could ripple unfavourably throughout the Canadian economy from coast to coast.
To understand Trump’s protectionist stance, let’s briefly examine the impacts of the United States–Mexico–Canada Agreement (USMCA) and some key trade restrictions his administration placed on Canada:
Steel and Aluminum Tariffs
In March 2018, the Trump administration imposed tariffs of 25% on Canadian steel and 10% on Canadian aluminum, citing national security under Section 232 of the Trade Expansion Act. In response, Canada implemented retaliatory tariffs on U.S. goods, including steel, aluminum, and various consumer items. Although these tariffs were eventually lifted in May 2019 after negotiations, they marked a shift in U.S.-Canada trade relations.
Softwood Lumber Tariffs
Trump's administration claimed Canadian provinces were unfairly subsidizing the lumber industry, resulting in duties ranging from 10% to 24% on Canadian softwood lumber imports. This impacted construction costs and strained trade relations.
Dairy Trade Restrictions
During the USMCA renegotiation, Trump criticized Canada’s dairy supply management system, which limited U.S. imports to protect Canadian farmers. The USMCA required Canada to ease restrictions on U.S. dairy, poultry, and egg products.
Threatened Tariffs on Auto Imports
Trump repeatedly threatened tariffs on Canadian auto imports as part of a broader negotiation strategy, though these were never enacted. This tactic pushed Canada to make concessions during USMCA talks.
These measures, most of which were lifted or adjusted by the end of Trump’s presidency as USMCA took effect in July 2020, underscored his "America First" approach. This stance brought a new tension to U.S.-Canada trade relations, favouring U.S. interests at Canada’s expense.
When it comes to trade, Canada’s bargaining power with the U.S. is limited. As such, USMCA primarily benefits the United States. Realistically, given the power disparity, it hardly matters if Trudeau or Poilievre is in office—the dynamic remains a zero-sum game where the United States typically benefits to Canada’s disadvantage.
So, why do some Canadians appear to support a foreign leader whose policies could jeopardize Canada’s economic relationship with the United States? Given that Canada’s economy is highly integrated with the U.S.—particularly through trade that supports agriculture and energy exports—this seems counterintuitive. Nonetheless, ideological and cultural alignments sometimes supersede economic pragmatism.
Here are a few factors that might explain why Trump’s protectionism hasn’t dissuaded some Canadians from supporting him:
Ideology Over Economics
For some supporters, ideology outweighs economic concerns. Canadians who align with Trump’s values—such as strong borders, nationalism, or conservative social policies—may view his economic policies as secondary. They might even believe Canada could adapt or benefit from a renegotiated relationship, hoping it fosters self-sufficiency.
Misperceptions of Economic Impact
Not all Canadians fully understand the risks protectionism poses to our economy. Tariffs and trade barriers may seem abstract, especially if they don’t immediately affect daily life. Media portrayals often simplify or sensationalize economic issues, making the true consequences of protectionist policies harder to grasp.
Discontent with Canadian Policy and Institutions
Some Canadians dissatisfied with the current state of Canadian politics or institutions may see Trump as a desirable alternative, even if his policies could harm Canada’s economy. This perspective often reflects a desire for radical change, regardless of the economic logic for Canada.
Belief in U.S.-Canada Resilience
Some Canadians assume that the close Canada-U.S. relationship would shield us from the full effects of American protectionism. They might believe that U.S. businesses, particularly those reliant on Canadian resources, would press against harsh tariffs, thereby maintaining some stability despite Trump’s policies.
Populism and National Pride
Canadian populist sentiments sometimes mirror those in the U.S., advocating for national pride and reduced global dependence. Trump’s rhetoric may inspire Canadians who believe in reducing reliance on U.S. or international trade, especially those favouring local industry, even at a cost.
Canada’s negotiating power with the U.S. is indeed limited, and a protectionist American leader could seriously impact critical Canadian sectors like manufacturing, agriculture, and energy. However, when ideology and populism come into play, economic concerns may take a back seat. Some Canadians may assume that, despite protectionist measures, Canada’s adaptability and resource-based economy could provide stability through turbulent times.
Summary
Donald Trump's administration implemented protectionist policies that negatively impacted Canada’s economy, such as tariffs on steel and aluminum, which were later lifted in 2019, and restrictions on dairy trade, as well as threats of auto tariffs. Despite these policies, which disrupted sectors of the Canadian economy, some Canadians continue to support Trump. For these individuals, ideological alignment with Trump on issues like nationalism and conservative social values often outweighs concerns about economic impacts. Additionally, some Canadians hold misconceptions about the effect of protectionist policies, believe in the resilience of the U.S.-Canada relationship to withstand economic tension, or seek alternatives to Canadian policy and institutions. Populist views favouring economic independence and national pride further contribute to Trump’s appeal, despite risks to Canada’s economic stability. These findings underscore the way cultural values often eclipse economic pragmatism in shaping political preferences.
Conclusion
In examining the support some Canadians have for Donald Trump despite his protectionist policies, it becomes clear that ideology can overshadow practical economic concerns. Although Trump’s policies—such as tariffs, restrictions, and trade renegotiations—have adversely affected Canada, including initial tariffs on steel and aluminum later lifted in 2019, his supporters persist due to deeper ideological and cultural affinities. This alignment demonstrates a broader trend: cultural identity and ideology frequently override economic interests, shaping public opinion in unexpected ways. While Canada’s reliance on the United States creates a vulnerable trade position, many supporters seem to believe Canada’s adaptability and close economic ties with the U.S. will sustain stability despite protectionist policies.
I think we have the makings of a good discussion here! Let's do a video interview on the topic, analyzing the immediate effects that sanctions might have on cross-border trade and US investment in Canada. It might turn out that by driving up the cost of Canadian-sourced good for Americans, Washington could price Canadian good s out of the US market, thus eliminating the benefits to US firms of investing in resource extraction in Canada. If that happens, US money will be pulled out of our economy and our own people will acquire sovereign Canadian control of our natural resources instead of being hewers of wood and drawers of water for the massive empire to our south. It would then open the door for us to cut our own insane sanctions against China and Russia, allowing us to sell our products to various foreign buyers instead of only to our current big bosses to the south. There are two edges to this knife and getting Canadian to compete on global markets instead of serving onyl American mega capital would likely be a good thing for Canadian-owned industry and workers as well. Best regards and looking forward to discussing the topic at length in a joint podcast! – John Bosnitch
ReplyDeleteCanada has zero right to complain about the tariffs that Trump wants to impose on our goods being brought into the US market. Why? Because globalist warmonger patsy (pansy?) Trudeau has himself imposed outrageous tariffs against cheap Chinese goods that would have helped Canadians to install solar power similar to that offered by Elon Musk's Solar City venture. We can't honestly complain about sanctions against our goods when we set the precedent by imposing them against Canada, unless of course, we all want to wear the title of "hypocrite". Here, have a look for yourself: https://www.sauder.ubc.ca/news/rift-canadas-solar-industry-tariffs-imposed-chinese-solar-panels#:~:text=But%20a%20new%20ruling%20by,impacts%20across%20the%20solar%20industry.
ReplyDeleteWhile the other parties may make some head ways, the two dominant parties are the Reform/Conservative and the Liberals, In the up coming elections Canadians the question is which party is the lessor of the two evil. It seems that whoever gets elected are plutocrat's.
ReplyDeleteStephan Harper during his tenure Canada imposed tariffs on goods from dozens of countries, including China, as part of an initiative to eliminate preferential tariff rates for nations classified as "developing economies" under Canada’s General Preferential Tariff (GPT) system.
In 2013, Harper's government announced that as of January 1, 2015, Canada would withdraw GPT status from 72 countries, including China. This change meant higher tariffs on a range of goods imported from these nations, signaling a shift in how Canada approached trade with rapidly growing economies like China.
The decision was part of an effort to modernize Canada’s trade policies and align them with the realities of global economic development. While not explicitly targeting China alone, the policy was criticized for potentially straining Canada-China trade relations. On the other hand according to CBC in 2024 Trudeau implemented a 100% tariff on Chinese-made electric vehicles (EVs), effective October 1, 2024. This measure aims to protect Canada's domestic EV industry from what the government considers unfair competition due to Chinese state subsidies.
In addition Trudeau placed a 25% Tariff on Chinese Steel and aluminum imports. This measure aims to protect Canada's domestic EV industry from what the government considers unfair competition due to Chinese state subsidies. These actions align Canada with similar measures taken by the United States and the European Union to safeguard their industries from subsidized Chinese products.
While it’s true that Canada imposed tariffs on Chinese goods, this is not equivalent to the United States imposing tariffs on Canadian goods. Canada’s tariffs on Chinese imports were largely motivated by concerns over unfair trade practices, including government subsidies and intellectual property issues. These tariffs are intended to protect Canadian industries from predatory practices, which is a standard approach in international trade policy. On the other hand, the U.S. tariffs on Canadian goods often targeted long-standing, mutually beneficial trade agreements (e.g., tariffs on steel and aluminum), which disrupted a stable economic relationship.
Every nation has the sovereign right to implement trade policies that protect its national interests. Canada's tariffs on Chinese goods do not justify or "set a precedent" for the U.S. imposing tariffs on Canadian goods. The situations are fundamentally different because the trading dynamics and the underlying reasons for the tariffs vary greatly. Having said that one has to understand the complexities involved with international trade relations which can create trade disputes that arises from competing interests and differing economic strategies, the resolution of these conflicts require negotiations and compromises. So simplifying these issues to accusations of hypocrisy misses the nuance of the discussion.