LILLEY: Trump owns the trade war. Carney owns his response
· Toronto Sun
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It’s unbelievable how far the Canada-U.S. relationship has deteriorated, and it’s hard to see it recovering. The anti-Canadian rhetoric and attitudes coming out of Washington are likely at their lowest point since calls to take over parts of British Columbia were expressed in the slogan “54-40 or Fight.”
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Canada, which fought alongside the Americans in Afghanistan, Korea and two world wars, and helped rescue eight American hostages from Iran, is now viewed as a villain.
On Monday, President Donald Trump imposed even more tariffs on Canada, claiming we are treating American goods and companies unfairly.
In some instances, he has a point. On most of this, though, he is way off base.
Trump’s claims don’t always match reality
In his declaration on new auto tariffs , Trump states that Canada has “an unreasonable and unequal imposition on U.S. auto and auto parts exports.” He’s referring, of course, to the 25% tariff that Canada imposes on the American components of finished automobiles imported into Canada.
That tariff exists only because Trump imposed a 25% tariff on Canadian automobiles and auto parts. We have no similar tariff imposed on American auto parts.
Trump claims Canada is discriminating against U.S. automakers because imports from Mexico, Japan, Korea and Germany are rising while American vehicles face tariffs.
Well, those countries haven’t slapped us with 25% tariffs lately.
Maybe Canadians are also choosing to buy cars from those countries in response to Trump’s actions and rhetoric toward Canada.
On his new tariff action tied to the booze ban imposed by eight of the 10 provinces, Trump is right: It is a discriminatory action against American companies. As Ontario Premier Doug Ford rightly points out , the American booze ban exists only because of Trump’s tariffs.
We can debate whether the booze ban is a good idea, but we can’t debate its origin.
Missed opportunities at negotiating table
As for dairy, this has long been an issue for the Americans under every administration. In fact, the Biden administration took Canada to a trade panel twice over dairy quota allocation. They don’t want to scrap supply management, nor are they trying to flood Canada with hormone-treated milk. They simply believe we don’t treat them fairly .
Had Canada acted more strategically, Carney could have used the booze ban and dairy dispute to secure a better trade deal and avoid this latest round of tariffs.
Yes, Trump is irrational, but Carney promised Canadians that he knew how to deal with the American president.
“I know the president. I’ve dealt with the president in the past in my previous roles when he was in his first term, and I know how to negotiate,” Carney boasted last year.
Between the Gordie Howe bridge deal and rising tariffs, Carney has yet to demonstrate the negotiating skills he promised voters.
On the bridge, Canada had few cards to play. On securing a better trade deal, we have many, but Carney has decided that playing politics is better for him and his party than securing an agreement.
Escalating rhetoric is hurting Canadians
The anti-Canadian rhetoric coming out of Washington is at a fever pitch, but so too is the anti-American rhetoric led by politicians such as Carney and provincial premiers like Ford and B.C.’s David Eby.
Rather than escalating the rhetoric, Carney should have presented an offer Washington couldn’t refuse: Changes to dairy quota allocation, removal of the booze ban, preferential access to critical minerals and energy, and increased defence spending focused on the Arctic.
In exchange, Carney should have sought the removal of tariffs and guaranteed access to the American market.
We are increasing defence spending, but Carney has made clear he prefers buying from almost anyone but the Americans. He has also openly pursued closer ties with Europe while sidelining the United States.
The question is no longer whether Donald Trump is acting unfairly. He is.
The question is why Mark Carney, after promising Canadians that he knew how to handle Trump, has failed to stop the situation from getting worse.
Tariffs are increasing. The rhetoric is escalating. The relationship is deteriorating. And ordinary Canadians are left carrying the cost.
Trump owns the trade war.
Carney owns his response to it.