During a state visit to Washington in 1969, Pierre Trudeau famously compared living next to the United States to “sleeping with an elephant,” emphasizing Canada’s vulnerability to every “twitch and grunt” from below the 49th parallel.
Now 55 years later, the “grunts” of US protectionism have become a rallying cry for Republican nominee and former US president Donald Trump, who has vowed to impose a 10% universal tariff on all imported goods if elected in November.
While current polling suggests that a second Trump presidency is far from guaranteed, the possibility raises an essential question about Canada’s preparedness for potential US tariffs under Trump’s oversight.
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Is Canada prepared for a potential trade dispute with a former president known for his unconventionality, including public opprobrium of stakeholders on social media?
PM Justin Trudeau of Canada acted so meek and mild during our @G7 meetings only to give a news conference after I left saying that, “US Tariffs were kind of insulting” and he “will not be pushed around.” Very dishonest & weak. Our Tariffs are in response to his of 270% on dairy!
— Donald J. Trump (@realDonaldTrump) June 9, 2018
With the looming possibility of a trade dispute under a second Trump presidency, we spoke with the President of the Treasury Board, Minister Anita Indira Anand, to find out how Canada preemptively prepares for Trump 2.0.
@freshdailyca Is Canada ready for Trump Part II? We spoke to the President of the Treasury Board, Minister Anita Anand, to find out the strategic efforts being made by Ottawa to prepare for a possible second Trump presidency, including the threat of US tariffs on all foreign imported goods #Canada ♬ original sound – Freshdaily
Minister Anand believes that a “Team Canada” approach should be taken to address any “irritants in the trade relationship before they get to the level of a trade dispute,” ensuring the seamless trade of goods and services across the US-Canada border, which is valued at nearly $3.4 billion a day.
So, how does Ottawa propose addressing these “irritants?”
Minister Anand pointed to the revival of stakeholder forums like the Canada-United States Regulatory Cooperation Council and the continued pursuit of diplomacy and multilateralism “regardless of who ultimately wins the US election in November” to ensure “the strong economic ties between the two countries are sustained.”
On the topic of the North Atlantic Treaty Organization (NATO) spending and Canadian premiers’ public concerns about potential retaliatory US trade measures due to Canada’s inability to meet its NATO commitments, Minister Anand brought up PM Justin Trudeau’s recent pledge to reach the 2% defence-spending target by 2032.
In the short term, Minister Anand highlighted the latest budget, which outlines an increase in defence spending “so that we get to 1.76% of GDP in the next five years.”
When asked why she believes the Liberals are better positioned than the Conservatives to manage the ongoing US-Canada relationship, she discussed her government’s track record.
“The Prime Minister has successfully collaborated with three US presidents, soon to be a fourth, and we continue to strengthen the trading relationship between our two countries. We renegotiated the North American Free Trade Agreement (NAFTA), and the $3.4 billion in daily trade is a testament to the close relationship between our nations.”
How do we get young leaders to take action in their communities? Thanks @BarackObama for your visit & insights tonight in my hometown. pic.twitter.com/EwJXPEkN3w
— Justin Trudeau (@JustinTrudeau) June 7, 2017