“We cannot fight back by levying tariffs on $35 billion worth of goods or $135 billion worth of goods when the other side is targeting $900 billion. We need to do exactly the same, tit-for-tat, no exceptions.”

As I write this, President Trump has just imposed 25 per cent tariffs on all cross-border trade between Canada, Mexico and the United States (not including oil, for which tariffs at perhaps some lower rate are to come later). As you read this, it is my sincerest hope the tariffs will have been suspended or are in the process of being removed altogether. What might cause that to happen, however, is the 64-thousand-dollar question.

On the face of it, the president is demanding a strengthened physical border between Canada and the U.S. so as to impede illegal immigration and the flow of drugs. We have offered that and are implementing measures to demonstrate our commitment to achieving this goal. Mr. Trump knows that, of course, as our trade envoys, political leaders and business types have been bombarding Washington and those in the new administration with evidence of this undertaking.

Nevertheless, for whatever reason, the new tariffs are being imposed and will cause real and unnecessary damage. We already understand that Mr. Trump means business—we get it. Generally speaking, when someone uses strong-arm tactics (in the interests of not escalating the rhetoric, I want to ascribe respect to both the president and the responsibilities of his office) and gets their way, the result is only to encourage more such behavior. The only tried and true method to get to an equitable resolution is to demonstrate the cost and pain to them, of such behavior.

 

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