Deciphering the Canada/US tariff wars

Patrick Gossage • August 12, 2025

1. Negatives - The sad truth about missing the August 1 deadline:


Trump on September 31: ”We haven’t spoken to Canada today. He’s called.” Carney could not get through! Obviously, the President of Mexico did and got a 90 day reprieve. He may speak with Carney this week but clearly the PM’s relationship isn’t what we thought.

Trump:: ”(Canda} has been very poorly led….Canda has treated US farmers “very badly” (our apparently untouchable dairy and poultry supply management regime remains a major irritant.). He still believes there is a “huge flow of fentanyl from Canada to the US that has to be stopped.” Trump said earlier he hasn’t “had “a lot of luck with Canada,” and reaching a deal wasn’t a priority for his administration. In addition, Trump intensified his trade war with Canada with A35% tariff just ahead of the August 1 deadline for an agreement, saying it would be "very hard" to make a deal with Canada after it gave its support to Palestinian statehood. “


Ford among others has called all along for a tougher approach and dollar for dollar reciprocal tariffs on US goods coming to Canda – which the White House dislikes claiming only Canada and China are imposing these tariffs. A recent Angus Reid poll suggests the proportion of those advising the PM and his team to “play hardball” has increased, from 63 to 69 per cent of the population compared to mid-July.

Recently Carney has prepared us to accept there will be no deal without tariffs. In March he predicted “It is clear that the United States is no longer a reliable partner. It is possible that, with comprehensive negotiations, we will be able to restore some trust, but there will be no turning back,” 

On August 5 he said the focus now will be to preserve and reinforce CUSMA ahead of next year’s negotiations, adding “There’s a bigger picture there. Sounds like buying time?


One journalist’s – Matt Guerny’sjudgment on Carney’s performance: “…the central conceit of the federal election three months ago was that we faced an unprecedented crisis requiring an unprecedented response…The Liberals made the case — and voters agreed — that Carney was the man to lead Canada’s emergency effort….But I will blame Carney for not doing the things that he can do, as fast as he can do them, and that very much includes moving fast enough to harden this country so that we can better withstand geopolitical and economic threats … threats like an erratic and unpredictable U.S. president.”.


2. Positives


Government’s plan B: Carney - “Canada, we are in charge of our future. We can build a strong economy that doesn't depend on the United States. We can be masters in our own house.” Bill C5 envisions huge national infrastructure projects: “It’s time to unite this country and invest in nation-building infrastructure on a scale not seen in generations. Major nation-building projects will connect Canada and grow the economy in ways that last for generations, such as the Port of Churchill, hydrogen production in Edmonton, seizing vast solar potential in Cowessess, high-speed rail that starts with Windsor to Québec City, and a trade corridor to Grays Bay in Nunavut, amongst others.” However, we are still wiring for a major project to be green lit under the Build Canada Act.


50% Steel and Aluminum tariffs backfiring: GM and Ford announced billion-dollar losses and Ford’s best-selling aluminum body F150 pickup severely affected by aluminum tariffs. This noted by US Treasury Secretary Scott Bissent: “We will be negotiating with Canada on those.”


Canadians deciding to not travel to US -and US alcohol being taken off Liquor Board shelves in provinces (except Sask and Alberta having an impact. This is "worse than tariffs", the boss of Jack Daniel's maker Brown-Forman says. Statistics Canada reporting a "steep decline" in Canadian travel to the U.S., particularly by land, and a -notable, drop in air travel. Big US coverage of impact on business in affected states.


Leverage of Canadian rare earths and energy: Canada is a major energy exporter to the United States, particularly for oil, natural gas, and electricity. Canada supplies a significant portion of the US's crude oil, natural gas, and electricity imports. Specifically, Canada provides 60% of the crude oil and close to 100% of the natural gas imported by the U.S. Additionally, Canada supplies 85% of the electricity imported by the U.S. 


Canadian reciprocal counter tariffs: On March 3 2025 Trudeau announced a slew of retaliatory tariffs on US consumer and other goods entering Canada: Outlining the tiny amounts of Fentanyl crossing the border and investments in enhancing border security, he added : “Canada will not let this unjustified decision go unanswered. Should American tariffs come into effect tonight, Canada will, effective tomorrow, respond with 25 per cent tariffs against $155 billion of American goods – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days’ time. Our tariffs will remain in place until the U.S. trade action is withdrawn.”  August 4th Carney said he may consider removing some. They have had an immediate impact on Canadian households.


Tariffs hitting US consumers Proctor and Gamble announced last week it would raise prices on a wide range of consumer goods. Other manufacturers, from Porsche to Nestle to Adidas have announced the same thing. As have Walmart and Amazon which has raised prices on over 1200 items.


Andrew Coyne on one sector Trump cannot control: “The Markets may be nevertheless prove to be Mr. Trump’s most implacable opponents.”

Patrick Gossage Insider Political Views

By Patrick Gossage July 7, 2025
When I was at university in the sixties, it was easy to love being Canadian. Patriotism was easy in the era of Pearson, peacekeeping and his Nobel Prize. He introduced defining landmark social programs like the Canada Pension Plan and universal health care. He also was crucial in launching the new Canadian flag, promoting bilingualism, and fostering a more inclusive immigration policy. His government got into the business of Canadian cultural promotion with the establishment of Telefilm Canada in 1967 to fund Canadian filmmakers. (The crown corporation, the National Film Board, was established in 1939.) The Pearson era went out with a proud Canadian bang at Expo67. Canada was prosperous, our identities, either largely British and French, were secure. The writer and philosopher George Grant, put it this way: “English speaking Canadians have been called a dull and costive lot. In these dynamic days, such qualities are particularly unattractive to the chic. Yet our stodginess has made us a society of greater simplicity, formality, and perhaps even innocence than the people to the south.” This is the society in which most anglo seniors today grew up. Not chic, looking with some envy at the glamour of Hollywood and Broadway, but modest and content. But the seeds of change were there. In Toronto. Italian and Portuguese laborers were being brought in to build subways and suburbs. Canada was about to add to the core French and English culture, and value assumptions far more diverse, and multicultural influences. Multiculturalism became official government policy in 1988. In his speech to the House of Commons, Trudeau stated that no singular culture could define Canada, and that the government accepted “the contention of other cultural communities that they, too, are essential elements in Canada.” A policy of multiculturalism was implemented to promote and respect cultural diversity, and to in fact fund ethnic efforts to preserve and develop their cultures within Canadian society, the opposite of the US “melting pot” objective. Section 27 of the Canadian Charter of Rights and Freedoms officially recognizes multiculturalism as a Canadian value. In a 1971 speech in Winnipeg to a Ukrainian audience, Trudeau said: “What could be more absurd than the concept of an “all Canadian boy or girl! “ Trudeau greatly enlarged the makeup of the body of immigrants by expanding the ‘family class’. In 1978 immigration act changes allowed new Canadians to sponsor their parents of any age. Those from less-developed nations found this particularly appealing. Trudeau senior’s major accomplishment which ensured the protection of all minority rights was the repatriation of our constitution woth the Charter of Rights and Freedoms Now In Canada, approximately 23.0% of the population are first-generation immigrants, meaning they were born outside of Canada. This figure represents the highest proportion of immigrants in Canada in 150 years and is the highest among G7 countries. Over half of our population are either of English or French heritage. The torch of openness to refugees and immigrants and “diversity is our strength” has been taken up by Justin Trudeau in a big way. He told the New York Times Magazine in October 2014 that Canada could be the “first post national state”. He added: “There is no core identity, no mainstream in Canada.” Many would argue that, yes, there is a core set of Canadian values. Often not recognized, they are regularly reflected in government policies. They set us apart from the United States, form part of our identity, and enrich our life experiences. Pearson and the Trudeaus have been instrumental in implementing Liberal values, ensuring equality of opportunity across the country and that no minority is trampled on. Foremost is universal publicly funded health care, whatever its problems. His son will be remembered for the Canadian Child benefit which today grants parents up to over $6,000 per child, which greatly reduced child poverty and $10 a day daycare. Justin Trudeau also launched publicly funded denticare and started a pharmacare program. Recipients of these programs obviously see them as essential parts of being Canadian. The generally shared values of Canadians include the importance of collective wellbeing, co-operation and social equality and a belief that active governments can improve our lives. Justin Trudeau’s self-declared “feminism” and his making cabinet one half women showed a dedication to equal rights for women which he tirelessly promoted. He was forever promoting the value of “diversity is our strength”. We genuinely welcome immigrants and show a high degree of tolerance for differences. Perhaps the best indication of this is the late seventies welcoming of over 60,000 Vietnamese boat people. As well, after 2015, over 44,000 government and privately sponsored Syrian refugees were settled and helped to establish themselves in Canada. Prime Minister Trudeau personally welcomed the first arrival in Toronto. While seemingly uncontrolled immigration of foreign students and refugees has become more controversial recently, it is accepted that we need immigrants, and the flow is now more rationally controlled. His father also ruled over a Canada that was very pro-Canadian and even anti American – not hard when the United States was immersed in the nightmare of Vietnam. He was well aware of the dangers signaled by George Grant in Lament for a Nation, which predicted the virtual integration of the Canadian and US economies. He established the Foreign Investment Review Agency to break the wholesale takeover of Canadian businesses by US firms. He established Petro Canada to get a window into the largely foreign owned oil and gas sector. And his government was very active in supporting and encouraging Canadian culture. The CRTC mandated Canadian content on our airwaves, spawning a healthy music industry. His son substantially increased funding for the public broadcaster CBC. Then in 1988 came a major shift in our identity and sovereignty. Prime Minister Mulroney wanted a free trade deal with the US and John Turner, the defeated Liberal leader, finally found his voice: “I will not let Brian Mulroney sell out our sovereignty. I will not let this great nation surrender its birthright. I will not let Brian Mulroney destroy a 120-year-old dream called Canada, and neither will Canadians”. But Turner lost, and a new deal sealed the situation we are in today with over 70% of our exports going stateside and Trump determined to wage economic warfare with a country he feels does not have a right to exist and should be the 51 st state: “Economically we have such power over Canada.” In fact, we have inadvertently given him “all the cards” as Trump likes to say. Turner might well say from the grave, “I told you so!” Sovereignty means more than building our own economy more independent of the United States. It means rebuilding the pride we have as Canadians and actually knowing and cherishing its values so different from those south of us. And this seems to be happening ironically, thanks to Trump’s trumpeting us as a 51 st state. Flags are everywhere and as we celebrate our 158 th birthday there is a new patriotism bursting out across the nation. The national anthem is being enthusiastically sung by audiences at all sorts of gatherings and performances. And worry as we may about the diverse cultures and beliefs of the hundreds and thousands of immigrant adults from every corner of the Globe, we know their children going to public schools will become knowledgeable, committed Canadians. There is a Canadian soul which will not be destroyed.
Doug Ford in a suit and tie is talking into a microphone
By Patrick Gossage June 11, 2025
Who is the is the real Doug Ford? Is it the smiling man walking beside Premier of Alberta Danielle Smith into the meeting of the Premiers with the PM intoning “love is in the air”(!) or the inept initiator of the Green Belt scandal which sold protected land to his developer friends – for which he apologized while reversing the order?
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