New American president that of Donald Trump threats to use “economic force” against Canada and its industries arouse concern and disbelief.
Speaking at a news conference Tuesday, Trump said he could use economic levers to push Canada to become part of the United States, while once again raising trade deficit issues and stating that the United States does not need to purchase Canadian lumber, dairy products or dairy products. automobiles.
Flavio Volpe, president of the Automotive Parts Manufacturers Association, said Trump’s comments show he doesn’t understand how interconnected the Canada-U.S. auto sector is.
Trump has threatened to impose 25% tariffs on goods from Canada and Mexico, citing border security concerns.
Volpe said the threat was senseless and would prompt an immediate response from U.S. automakers and their shareholders, through lawsuits and other means.
Trump’s broader comments on Canada’s joining the United States, as well as his statements on seizing the Panama Canal and Greenland, show that he wants to sow chaos, Volpe said.
“I mean, what are we talking about?” » said Volpe.
He said the threats raise larger issues than Canada’s parts sector and the auto sector itself.
“It’s a lot bigger than a tool maker in Windsor or a blow molded plastic supplier in Markham,” Volpe said.
“Some men just like to watch the world burn, and I think he’s one of them.”
Trump on Tuesday called the U.S. trade deficit with Canada a subsidy, a comment he has made before.
“We don’t need anything they have,” he said.
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“We have more than them.”
Duane Bratt, a political scientist at Mount Royal University, said Trump’s comments demonstrate he doesn’t understand trade.
“(Trump) sees this as a reckoning. If they don’t need Canadian products, why would they continue to buy Canadian products? It’s not a grant,” Bratt said.
“Why do Americans buy so many Canadian products for hundreds of billions of dollars? Because the product is good, or the price is good, or a combination of both.
Canada’s best strategy for now is to take a “wait and see” approach publicly, while avoiding any threat of retaliation, said Fen Hampson, a professor of international affairs at Carleton University and co-chair of its advisory group. experts on Canadian-American relations.
He said Canada took advantage of remaining unnoticed.
“It’s something we haven’t been good at; You shouldn’t take the bait, no matter how tempting it is,” Hampson said.
“When you’re a small party, you don’t make threats that, first of all, won’t be credible because the big guys can trample you like a waste. So we need to be much more agile, we need to be much smarter and our Prime Minister should shut up.”
Prime Minister Justin Trudeau responded to Trump’s comments Tuesday by saying, “There is no way Canada will be part of the United States.”
“Our two countries’ workers and communities benefit from being each other’s largest trading and security partners,” Trudeau added in a social media post.
Although he urges caution for now, Hampson said Canada should remain ready to respond with its own targeted measures in case Trump does not move away from his current rhetoric once he takes office. Hampson suggested that might involve responding by imposing tariffs and embargoes on products such as California wine or Tennessee whiskey.
The federal government could also tax digital services frequently used by Canadians, such as Netflix, Amazon or Uber, or attack the American tourism sector by taxing those who vacation in sunny destinations like Florida or California during the winter months.
“They’re going to take that into account, particularly in Trump’s home state, where Canadians contribute greatly to the local economy,” Hampson said.
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