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President Trump declares economic war on Canada

TEAM CANADA: A flag was quickly placed on a fence in Inverness and all Canadians are asked to demonstrate their support for Canada in these trying times.


 

February 5, 2025

-by Rankin MacDonald
    It was a terribly sad day for Canada.
    Our closest neighbour and friend, the United States, imposed a crippling 25 per cent tariff on all Canadian goods exported to that country, as well as a 10 per cent tax on all energy supplied to the United States.


    The tariffs and taxes were to begin on Tuesday, February 4th.
    On Monday Canada got a reprieve until March 4th as long as it strengthens its border controls, but there is still a litany of grievences that Trump wants addressed and if they are not tariffs will follow.
    President Donald Trump  declared economic war on America’s two largest trading partners, Canada and Mexico, his first economic action against a foreign country when there are so many that have not been friends to America  for almost two centuries as Canada has been.
    It was an insult to all Canadians.
    President Trump warned us that this was coming late last year, but our federal and provincial leaders went to the United States to plead their case for both Canada and the United States.
    President Trump implied that if Canada secured its border with the U.S. better, preventing the flow of fentanyl and illegal immigrants, and worked on a better trading arrangement, then the imposition of tariffs could be avoided.
    While less than one per cent of the fentanyl and illegal immigrants pass through the Canadian border, and if you take oil out of the trade arrangement, then the U.S. would have a trade surplus with Canada.
    Canada took President Trump’s words seriously and earmarked $1.3 billion to beef up border surveillance with more helicopters, cameras, drones, and personnel, but this didn’t seem to appease President Trump.
    People were hurt and afraid when the American tariffs were imposed on Saturday.
    This was a country who we always stood beside in times of trouble, made it our second home, welcomed the millions of visitors every year from below the border, worked together on projects, fought side by side and died with their sons and daughters in WWI, WWII, the Korean War, in Iraq, and after 9/11, we joined them in Afghanistan for 15 years, losing 165 of our valued sons and daughters.
    We stood beside them in weather-related tragedies, sent our aid and people to places like New Orleans and other states slammed by hurricanes, and just lately risked Canadian lives to help the Americans get control of the Los Angeles fires with both people and equipment.
    We took in every one of them and treated them like family when they landed in Canada after the Twin Towers terrorist tragedy.
    And Canadian diplomats risked their lives to rescue 10 Americans after the fall of the Shah of Iran in 1979.
    But that was yesterday and President Trump is looking at today, and his tomorrow, and friends be damned.
    In his last presidency, Canada, the United States, and Mexico sat down to negotiate a new trade deal, which was eventually signed and approved by the American president.
    It made North America a solid trading block to deal with the rest of the world, but this time pundits feel there is something more ominous in the trade cards.
    Why weren’t those cards place on the same negotiating table?
    Trump is waging “economic” war to imprint his brand on North America.
    He has not only insulted and threatened Canada and Mexico, but he has renamed a mountain in Alaska in the name of a great protectionist.
    It has been given its original name, after President William McKinley, the 25th president of the U.S.
    He has renamed the Gulf of Mexico the Gulf of America.
    He wants to reclaim the Panama Canal in Panama.
    He wants to acquire Greenland.
    And all this leads to taking over Canada as the 51st American state.
    We have resources aplenty, including metals the U.S. needs, plus water, and to bring Canada to its knees economically, forcing it to look to join the biggest economy in the world is now being discussed in the halls of power.
    On Saturday night, with the support of all the Canadian premiers, Prime Minister Justin Trudeau stood up to Trump by imposing tariffs on American goods.
    This will increase prices to consumers on both sides of the border, hurt large and small industries, cut millions of jobs, and may even send Canada into a recession.
    The federal government promised programs to help businesses and individuals which will be announced in coming days.
    Out of the pandemic fire and into another.
    Canada will hit back with tariffs on $155 billion worth of American goods as early as next week.
    Canada imposed a 25 per cent tariff on $30 billion worth of American goods on Tuesday and then it will apply another $125 billion worth of American goods in three weeks’ time.
    Trudeau said it will be American spirits, wine and beer, vegetables, clothing, shoes and perfume, hou sehold appliances, furniture, and sports equipment.
    There could also be restrictions on minerals and energy going to the U.S. and American companies will not be able to bid on Canadian projects, government initiatives, infrastructure and business endeavours.
    Canadians are urged to buy products made or grown in Canada or other countries and to try to stand up for Canada by doing without American products.
    In the meantime, it seems that political leaders have looked to a different future as will all business leaders.
    The free flow of goods across Canada would be a great help so provinces and territories have got to lift their import restrictions.
    And Canada must look to export more products across the world and not always believe the leadership in the United States will be our friend.
    Canada must stand up to the American bully. He has pushed us against the wall, hurt Canadians in more ways than one, and as a bully does, promises to break our collective nose if we retaliate.
    The snowbirds will be flying north now in greater numbers in winter and we will still love our friends and family who live south of the border in the hope that they can put in a good word for us.
    How many of us worked in the United States in friendship for the past century?
    You won’t be seeing American liquor on the shelves of Nova Scotia liquor stores but there is a deeper fear, along with the insult so we may need a shot of Glen Breton.
    The 10 per cent tax is going to hurt the Alberta and Saskatchewan oil industry and we can only hope it does not get worse. So many count on the oil industry for their livelihoods and it is the biggest contributor to equalization.
      Newfoundland/Labrador, Quebec, and Ontario will feel the pain in the energy they send to the U.S.
    One person suggested cutting off the power to New York during the Super Bowl.
    But that would not be Canadian!
    The auto sector will be hit the hardest first and plants may have to close down when parts are no longer available or affordable.
    Canada supplies a 46.2 per cent share of lumber being imported into the U.S. In 2023, the U.S. imported 28.1 million cubic metres of softwood lumber mostly for residential and commercial construction. Canadian softwood will be needed if the U.S. is to grow its housing base, but the best way to reach a price right for both parties is at the negotiating table.
    The fishery will be greatly affected.
    Most of our lobster goes to the United States or China and eventually with the 25 per cent tariff it will hurt the local fishermen and their communities.
    It is easy to send lobster to the United Sates but more markets have to be explored around the world so that we are not vulnerable to the whims of a U.S. president.
    The crab industry in Atlantic Canada could be hurt even more with most of the crab going to the U.S. market and this crab season will tell just what impact it is going to have on the price of crab at the wharf.
    In some cases 80 per cent of the crab goes to the U.S.
    The Port Hawkesbury mill could also feel the wrath of President Donald Trump with 1,200 people relying on the company, that makes glossy paper for the U.S. market.
    Ninety-three per cent of its product goes to the U.S., and will the Americans look elsewhere for a cheaper product?
    This has many people in the Strait Area worried about job losses but this company is strong and can be counted on for doing all that is necessary to see that the future is solid.
    We asked Glenora Distillery if they export much of their single-malt whisky to the U.S. and the answer was no.
    What they do send may be curtailed and while the only thing in the process they get from the U.S. is barrels and there is no problem because they have enough for the foreseeable future.
    When it comes to agriculture, the trade between the two nations is $70 billions (U.S.).
    Apples, Christmas trees, cattle, pork, vegetables, berries, potatoes, poultry, and dairy products could all be seriously affected by the 25 per cent tariff.
    One of the real fears is if more dairy goods are allowed to come into Canada, what will this mean to our local farms?
    Tourism?
    Will Canadians be going south this summer and with the dollar at a historic low it could mean a large influx of American tourists.
    Will we have the employees to take care of them? And we will welcome them as true Cape Bretoners.
    Premier Tim Houston wrote:
    It’s remarkable to find ourselves at odds with our best friend and neighbour.
    It will take thoughtfulness and time, but we will get through this. There are things within our control that we must act on. We must ramp up our focus on finding new markets here at home with programs like Nova Scotia Loyal, focus on developing our own resources, eliminate inter-provincial trade barriers and, finally, of course, look for international diversification.
    We will do these things and no matter what, I will do everything I can to protect the interests of hard-working Nova Scotians and their families.
    Nova Scotians are my concern.
    We are anxious to understand the federal government’s plans for programs to support Nova Scotians, and we will also do what we can, but it is too early to determine exactly what is necessary.
    In response to U.S. tariffs, the following are the steps we will take.
    First, Nova Scotia will limit access to provincial procurement for American businesses. We will look for opportunities to cancel existing contracts and will maintain the option to reject bids outright because of President Trump’s unlawful tariffs.
    Second, the cost of tolls at the Cobequid Pass will double for commercial vehicles from the United States, effective Monday, February 3rd.
    Finally, we will direct the Nova Scotia Liquor Corporation to remove all alcohol from the United States from their shelves effective Tuesday, February 4th.    
    What some pundits are saying is that this is a continental power grab by Trump to cement his legacy as a President of the United States.
    Land is part of that legacy and maybe even a third term.
    The Republicans are so afraid of him, they, if they still have the power, may go along with a third term and maybe then we will be next door to the country divided once again.
    The Strait Area Chamber of Commerce wrote:
    As your local Chamber of Commerce, we understand the uncertainty many of our members face following the confirmation of U.S. tariffs being imposed on Canadian goods. This is an unprecedented and difficult turn, these tariffs are a significant threat to businesses in our region and we are forced to respond.
    For generations, Canada has been an integrated trading partner with the United States, building relationships in business based on historic ties, friendship, mutual benefit and support. U.S. buyers and the American consumer will also be greatly impacted with disruption and cost. It is a lose, lose situation on both sides, as noted in this Government of Canada infographic.
    As the coming weeks unfold, we encourage all business with import and export partners to keep the lines of communication open, ask your buyers to speak to their state and federal officials about the impact of tariffs on them. Please see the suggested key messages for NS businesses to use with US Partners and clients, prepared by Nova Scotia Intergovernmental Affairs.
    We encourage you to show even more support to your fellow Strait Area Chamber members, to step up for local and to buy local. Explore the Canadian market and support Canadian business. We continue to engage with the Government of Nova Scotia, other Chambers in the province and with both the Atlantic and Canadian Chambers of Commerce to keep members informed as we move forward together.
    To add your voice to this important topic, please take a moment to complete our survey on how tariffs may impact you: https://forms.gle/xkKTSrneiHjSSokw9.
    The Nova Scotia Federation of Labour (NSFL) again called for a united and firm response in our province, including measures protecting workers, our communities, and our economy. Nova Scotia Federation of Labour President Danny Cavanagh has been clear from the outset that this is an existential crisis that demands a united and coordinated response that meets the seriousness of this moment.
    Cavanagh met with other union leaders from across the country and the Minister of Employment, Workforce Development and Labour.
    “We know that many of these measures require federal government capacity and action. The Government of Nova Scotia must act and use whatever levers are available to supplement federal efforts.
    ‘These trade tariffs will have a devastating impact on our province. We must take all necessary steps to protect jobs, protect workers, safeguard our economy, and plan for the future. Again, we are calling for a coordinated approach, a united front between government, industry, and labour, ensuring we maintain economic stability and protecting our workers and communities from trade disruptions and their far-reaching impacts.”
    “That is why we called on the Premier to create a trade coalition to help us ensure the broader communities’ voices are heard and that workers and their needs are acted upon as the provincial government manages and responds to these tariffs. Workers are worried and suffering mental distress because they lack knowledge about their jobs from the province, so we need to get the information train on the tracks about how workers will be protected,” says Cavanagh.
    The tariffs are now set to take effect on March 4th.







 

 

 

 

 

 

 

 

 

 

 

       

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