The U.S. tariffs on Canadian aluminum are a kind of self-harm in the United States – economic self-insurance behavior.
President Trump announced on Monday that he raised all imported steel and aluminum to 25% tariffs is too familiar to Canadians, personally.
When I served as Canadian Foreign Secretary in 2018, the United States – our long-time friends, neighbors and military allies – imposed unreasonable tariffs on Canadian steel and aluminum and frankly insulted the excuse of national security.
Now, just four weeks after his second term, President Trump has once again raised the global trading order. First, he targeted U.S. trade treaty partners Canada and Mexico, and targeted 25% tariffs, from which we received a temporary probation. A few days later, he imposed tariffs on steel and aluminum on us and the rest of the world.
I saw this coming. As Deputy Prime Minister and Secretary of Finance, I understand the threat posed by Mr. Trump’s active economic nationalism. From the moment he was elected, I think Canada needs to prepare for a bold Trump 2.0 who intends to use trade as a weapon to sow chaos and intimidate capital, as well as investments from all markets outside the United States.
Some Americans may feel that this “possibly make the right” approach suitable for the current economic situation. The problem is that it will also damage the U.S. economy. Steel and aluminum are more costly to supply, which will harm the manufacturers and consumer presidents Trump claims to support.
Canada is the largest source of aluminum, sending it 3.2 million metric tons last year. Given the strong heat generated, aluminum is a physical form of electricity. This means tariffs on Canadian aluminum are taxes on energy – a time when the United States urgently needs more power to enhance the AI game with China.
Canadians need to know the cards we hold. We have to be ready to play them.
In 2018, Canada retaliated against $16.6 billion in taxes on US steel, aluminum and other imports, deliberately targeting products from red states such as Florida orange juice and Wisconsin cheese.
Mr. Trump may not care much about opposition from people in Canada, Mexico, the EU or South Korea, but he does care about workers and businesses in the United States. If exporters feel pressure from tits to impose tariffs starts calling the White House, the pressure on the government’s reverse route will grow.
Such an echo led to an increase in Canadian tariffs in 2019 and will now work again. All countries that produce steel and aluminum affected by these tariffs should retaliate against the dollar. We need to choose our goals carefully. The tariffs imposed by every country in the world on Tesla will be a good starting point.
The list of retaliation should be released immediately to allow us to target the greatest pressure on the government of the United States industry and workers. These Trump tariffs will take effect on March 12. At that time, Canada will have a new Prime Minister (I am one of the candidates) who must be prepared to act immediately.
These new import taxes, called Section 232, are a turning point in Canada and the world because they imply that the United States is making historic changes to its friends’ understanding, in fact, whether it is interested in it or not.
To its credit, President Trump is the first in the West to recognize that the Chinese shock is real to American workers, that the global financial imbalance driven by China is unsustainable, and that China’s advantage over global technology will threaten the United States.
International economic institutions have long been reluctant to acknowledge these reality, which has led to Mr. Trump’s election twice.
This is a rub. In fact, it will be much easier to solve these problems with the help of a firm American friend, especially Canada. And, at least until the last 10 days ago, we are eager to join your battle.
After all, our workers and our industries have suffered China’s shock like the United States. President Trump should remember that we have encountered our own difficulties in Beijing.
The United States does not need one person in the first place. Indeed, the rebalancing of the global economy that President Trump seeks can work best with traditional American allies.
But if the United States, which controls 25% of the global economy, pursues a punitive trade war with Canada and its other allies, we all have no choice but to seek other friends, wherever we can find them.
It’s easy to see why superpowers might be attracted by brilliant quarantine. But it is sometimes boring, time-consuming work with friends, which will give Americans the best chance to regain peace and prosperity achieved by the “greatest generation” of alliance founders.
Chrystia Freeland is a member of the Canadian Parliament, former deputy prime minister, and a candidate for the Liberal Party leader and prime minister.
Times are committed to publishing Variety of letters To the editor. We want to hear what you think about this or any of our articles. These are some Tip. Here is our email: letters@nytimes.com.
Follow the New York Times’ opinion section Facebook,,,,, Instagram,,,,, Tiktok,,,,, Bruceky,,,,, WhatsApp and Thread.
