After decades of alliance, economic integration, and goodwill between each other, the close relationship between the United States and Canada is coming to a tragic end. In hopes of bringing manufacturing and other industries back to the United States, President Donald Trump has imposed staggering tariffs on the United States’ neighbors, applying a 25 percent tariff to 50 percent of Mexican imports and 62 percent of Canadian imports. Canada, in particular, has received much attention from the president, who has outright stated that he wants to make our neighbor up north the “51st state.” Tensions have risen to unprecedented heights as the inflammatory tariffs have poised the two regularly friendly nations for mutual economic ruin.
Canadians, however, remain hopeful that they can avoid disaster following the election of the Liberal Party’s new prime minister, Mark Carney. Despite polls indicating that Canadian Conservative Party leader Pierre Poilievre would seize control of the nation’s parliament just months ago, Trump’s rhetoric, former party leader Trudeau’s resignation, and Carney’s rise have all made way for a massive surge in support for the incumbent Liberal Party. With the threat of a recession on the horizon, anger has erupted from the Canadian populace — along with increased support for the incumbent party to combat Trump’s cataclysmic tariff policies.
The Canadian government’s first step following the tariffs was to impose their own 25 percent tariffs on approximately $155 billion worth of U.S.-imported goods, establishing the nation’s attitude of retaliation rather than submission. However these retaliatory measures won’t prove sufficient to combat America’s oppressive economic policy. It is now up to Carney and his government to avert a complete recession and negotiate with the volatile and unpredictable Trump.
Before Carney took office, former Prime Minister Justin Trudeau set the country on the right track. The specific tariffs that he instituted carry strategic political implications. The brunt of the import taxes are levied on industries with passable domestic alternatives, while also accounting for the U.S. states they come from. Canada has targeted swing-state commodities from the U.S. to galvanize support from critical American demographics against Trump’s recklessness, a move that proved highly beneficial for the E.U. during Trump’s first term. Furthermore, Canada has refused to raise them to levels higher than the U.S., positioning them as a level-headed and diplomatic nation on the global stage in spite of the U.S.’ escalation.
Their response, though strategic and measured, has not panned out perfectly however. Reports indicate that Canada could negotiate a deal with the U.S. that exempts oil and natural gas from the established tariffs. Unfortunately, this could act as a serious leverage piece for Trump, who already seemingly has the upper hand as the leader of a larger economy that started this trade war.
Now, Carney must follow through on the country’s momentum and protect the Canadian economy from crisis. His resume demonstrates that, despite his lack of experience in elected office, he has acquired the experience and knowledge to respond to this unprecedented situation. Carney served as governor of the Canadian central bank and the Bank of England respectively, helping Canada avoid the worst of the 2008 economic crisis and assisting England in dodging Brexit’s most catastrophic consequences. Canadians hope his prior success as an economic leader gives him the capacity to meet the challenge.
Carney’s primary goals involve shifting focus inward. He plans to break down interprovincial barriers to create more open commerce within Canadian provinces and territories. His ambitions also include new energy projects to bolster Canada’s energy self-sufficiency. He has yet to fully develop his plan — however, given his track record of navigating through some of the most notorious economic crises in recent years, he may be the best person for the job.
Carney’s extensive experience with unprecedented circumstances may provide him the tools necessary to fulfill his promise to “win” this trade war. Only time will tell whether Canada can stave off the worst of what seems to be an impending economic crisis.
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