You can’t make sense of Canada-U.S. trade war

Premiers’ and PM’s united front is the only response to Trump-imposed tariffs and annexation talk

Premier P.J. Akeeagok talks to reporters about the newly imposed 25 per cent U.S. tariffs on Canadian imports Tuesday at the legislative assembly. (Photo by Arty Sarkisian)

By Corey Larocque

If you’re having trouble making sense of the rapidly souring Canada-U.S. relationship, you’re not alone.

After U.S. President Donald Trump opened his trade war with its longstanding partner, Canada, this week and turned his back on Ukraine, Prime Minister Justin Trudeau said the United States is choosing to work closely with Russia and to appease Vladimir Putin, “a lying murderous dictator.”

“Make that make sense,” Trudeau said in news conference Tuesday.

It doesn’t.

Canadians are stunned by the pace and extent of the deterioration of the Canada-U.S. relationship — once upon a time (i.e., six weeks ago) one of the steadiest in the world.

It’s hard to imagine anywhere in Canada more removed from the United States — culturally, socially and economically — than Nunavut.

Nunavut won’t feel the effect of the Trump-imposed 25 per cent tariffs on Canadian-made goods entering the United States. The territory doesn’t ship goods into the U.S. the same way provinces like Ontario and Quebec do. Those jurisdictions are bracing for an economic slowdown because Americans will likely buy fewer of their suddenly more expensive goods, or because companies will move jobs from Canada to the U.S. to avoid the tariffs.

The pain Nunavut will suffer from a trade war will come from even higher prices on the already expensive goods it ships from the south. Prices of American goods coming into Canada will be higher because the Canadian government has imposed retaliatory tariffs.

But Nunavut’s leaders get the crisis that Canada finds itself in because of Trump’s very dumb (to echo the prime minister) trade war against Canada.

“This is a time to be united,” Premier P.J. Akeeagok said in a statement Tuesday, hours after Trump fired the first official trade war shots.

It has been reassuring to see Akeeagok and other Nunavut cabinet ministers consistently putting up that united front with other provincial and territorial leaders to stand up for Canada.

Little things, like pulling American-made booze from the beer and wine stores, demonstrate Nunavut is in step with provincial governments.

Unfortunately, the trade war is taking place while Canada faces a lot of uncertainty.

We’re expected to get a new prime minister on Sunday when Liberal party members pick a replacement for the resigning Trudeau. Coincidentally, Trudeau’s performance in the face of Trump’s tariff and annexation talk might be the best work of his nearly 10-year tenure.

Depending on who wins, there could be a federal election right away. If not, certainly by October.

Nunavut’s legislative assembly is also in its dying days before an October election. So watch for a flurry of Government of Nunavut activity over the spring and summer as cabinet ministers and MLAs rush to tie up loose ends.

It’s early days in the trade war. Uncertainty lies ahead. And it’s hard to make sense of it.

But the strong, united front leaders like Trudeau and Akeeagok are putting up is the right start.

 

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(11) Comments:

  1. Posted by Making Sense on

    On the contrary, it is very easy to understand Trump’s war on Canada and much of the rest of the world, when you find the right perspective.

    Trump has promised lower taxes for his base and also for the rich people who “supported” him. So he needs to introduce a bill that lowers taxes for everyone, but mostly for the rich.

    He also wants to spend money on things he likes, such as himself.

    Trump wants money that does not require a vote by the US Congress. Tarrifs are a way for him to tax US consumers, mostly the middle class, without a vote in Congress. The reason for a tarrif on goods from Canada is that Canada is the biggest supplier to US, and hence a tarrif on goods from Canada would raise more money than a tarrif on goods from anywhere else.

    He is experiencing push-back from wealthy individuals who own manufacturing plants and farms in the USA, because they fear the extra costs will increase their prices and thus decrease the amount they can sell.

    As for the rest, rumour has it that the Trump family owes a vast amount of money to Putin. But I don’t have the resources to confirm or disprove that rumour.

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    • Posted by Completely Senseless on

      The disconnect between the moniker you’ve chosen and your comment can’t possibly be anything but ironic and intentional. Am I right?

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  2. Posted by Make Iqaluit Great Again on

    What a snoozer of an editorial. Nothing interesting here. No unique Nunavut take on what has been going on. I miss Jim Bell.

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    • Posted by Par for the course on

      The headline draws you into a feast of crumbs … it’s sad where we’ve arrived, considered where we’ve been.

  3. Posted by Mustafa Eric on

    Steve Partyka from arctic circle dental, is loudly pro-Trump and pro-America. Why is there no pressure on this man.

    Don’t believe me? Ask him if he loves Trump.

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    • Posted by Section 2 on

      You don’t have to like it, but freedom of conscience is enshrined in section 2 our charter, as it should be enshrined in our culture.

      Your comment is a disgrace.

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    • Posted by S on

      I know a dentist who supports the federal Liberals, but he’s a good dentist. Despite his unhealthy politics, I still use him for his skills

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  4. Posted by Frodo’s Parka on

    So Mr. Trump wants tariffs so that the income tax can be eliminated and manufacturing moves back to the U.S.. So let’s suppose this all happens, and all the manufacturing moves back. Who’s paying tariffs now?

  5. Posted by Mass Formation on

    Back in October 2024, Canada implemented 100% tariffs on eclectic vehicles and 25% on steel and aluminum from China.

    So first thing Monday morning, will the Nunavut government pull everything made in China from store shelves because of the $2.6 billion retaliating tariffs from China?

    Canada’s agriculture, meat, and the aquatic food industry will suffer, as Canada is a large exporter to China.

    Will Canada slap on for retaliating tariffs on retaliating tariffs to China or will Canada remain China silent?

    The squeeze of economic pressure to remove Canada’s tariffs on China is on. As if to be taken as a warning. Not to align with the USA for North American union for greater strength, security. And if talk increases about X and Star Link being banned in Canada, we’ll know the direction Canada is heading towards.

    Interesting, it’s only the USA demanding Canada clean up their world known Illicit country wide crime.

    Is Team Canada becoming clearer now?

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    • Posted by Gomer on

      😂🤣🤣🤣🤣😅😅🥳
      Innu-miaq-naat. Maii-kunniq.🤣😂

    • Posted by Seven Seas on

      I think Trump’s actions have highlighted the outrageous tariffs China places on foreign products. Just take a look at the Canadian customs manual – shocking protectionism. Imagine a few moves Trump could make: place an excise tax on all electricity going to Canada – Ford doesn’t seem to know US is a net exporter to Canada; terminate all DoD contracts; end the treaty that allows Canada to bid on DoD contracts; place a special tax on Canada until they stop supporting Putin by failing to pay NATO dues; match all Canadian tariffs; stop all imports of Canadian crude. US buys 97% of Canadian Crude and I’m not sure who else would buy the landlocked low quality dirty stuff they call crude in Canada. Believe it or not, there is plenty of sources of sour crude which is why it’s so cheap.

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