Leah HennigUnited Sates (U.S.) President Donald Trump has often heralded tariffs, even calling it “the most beautiful word in the dictionary.” He has threatened to impose 25 per cent tariffs on Canadian goods, though the decision to implement them has been on-and-off over the last couple months. His nationalistic economic strategy has been criticized as likely being detrimental to both America and the rest of the world. Trump’s “America First” policy may seem to the current administration like a fast track back to America’s glory days, but just the opposite may be around the corner. Nevertheless, Trump seems determined to impose unjustified tariffs on his neighbours up north, and our response matters.
Premiers and many elected officials are urging Canadians to buy Canadian counterparts of American goods, essentially calling for a boycott. Such a response will be effective in sending a message to the White House. However, it’s clear to me that Canada needs to consider solving a more fundamental issue — its over-dependence on the U.S..
An important question that Canada needs to ask itself is whether boycotting American goods would even affect the global superpower that the U.S. is. The answer would be yes. According to the Toronto-Dominion (TD) Bank, Canada is the largest market for American goods and services by a “large margin.” In the first three quarters of 2024, $350 billion USD worth of American goods and services moved into Canada.
The second question would be, is it realistic for all Canadians to partake in this economic protest? The answer to that question is substantially more complicated. First of all, Canada doesn’t typically manufacture many products, such as dishwashers. Other things that Canadians purchase more regularly, like fresh produce, must be imported from places like the U.S., especially in the wintertime. The reality is that American products will often be cheaper than their Canadian counterparts. It would be difficult to blame Canadians — already burdened by inflation and chronically stagnant economic growth — if they refused to pay even more just to send a message to Trump. The bottom line is this: boycotting would be effective, but it would be naive to assume that all Canadians, especially those with lower incomes, would or could participate. Historically, boycotting is rarely a long-term solution. So what is the long-term solution to pursue?
To figure out the long-term solution, we need to look at the long-term problem at hand. Trump’s hostility to Canada has exposed the elephant in the room in Canadian macro-economics — and in other areas too. Canada is far too economically dependent on the U.S.. Canada exports an incredible 77 per cent of its goods to the U.S.. No other country exceeds five per cent. This is precisely the reason why Trump’s tariffs are putting enormous fear into Canadian hearts.
There may be a solution: facilitating interprovincial trade. Premiers, provinces, and Canadians need to work together to get rid of numerous trade barriers that are standing in the way of more liberalized domestic trade. Tackling these barriers could greatly boost Canadian economic self-dependence. I agree wholeheartedly with Nova Scotia Premier Tim Houston that the necessity of these efforts is a “no-brainer.” While the process will require a lot of hard work, the rationale for it is simple. If we want to stand up not only to Trump but any other hostile foreign threats in the decades to come, we must stand united as one. Ideally in all aspects, but at the very least, economically.
Our current situation with the U.S. is like a couple going through a rough patch. Canadians still love Americans for the most part, but we must remember that no relationship stays static over time. While we can hope for better times, Canada needs to prepare for when that isn’t the case. Sure, angry messages over text have their place, but self-improvement will ultimately prove to be more crucial.
