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A Trade War Is on Hold, but Trump’s Motives and a Fix Remain Uncertain

by Investor News Today
February 8, 2025
in Market Updates
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A Trade War Is on Hold, but Trump’s Motives and a Fix Remain Uncertain
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Once I returned to Windsor, Ontario, the day earlier than President Trump was set to impose probably devastating tariffs on exports from Canada, concern was the town’s prevailing temper. Every week later, following Mr. Trump’s suspension of a 25 percent tariff on most exports and 10 % on oil, the temper has shifted extra towards anger and the nation’s focus has moved towards alternate options to america.

Whether or not Mr. Trump will impose the tariffs in early March stays unknown. However Matina Stevis-Gridneff and I discovered that no matter occurs, relations between Canada and america have undergone a profound shift.

[Read: Betrayed: How Trump’s Tariff Threats Tore the U.S.-Canada Bond]

If the tariffs do come into impact, Windsor will likely be hit significantly arduous. It has been almost 60 years since Canada and america began integrating their automotive industries via a commerce deal referred to as the auto pact. The North American Free Commerce Settlement then introduced Mexico into the combo.

Whereas the president has incessantly claimed that america is going through an emergency due to massive quantities of fentanyl coming throughout its border with Canada, my colleague Vjosa Isai has documented how his declare that there’s a important drawback is extremely exaggerated.

[Read: What to Know About Canada’s Role in the Fentanyl Crisis ]

Ana Swanson, who covers worldwide commerce within the Washington bureau, writes that to President Trump, “one financial quantity represents every part that’s fallacious with the worldwide financial system: America’s commerce deficit.” (America’ commerce deficit with Canada is a product of its oil imports.)

[Read: One Economic Number Has Vexed Trump for Decades]

“Mr. Trump has proven a willingness to make use of American energy in a approach that the majority of his fashionable predecessors haven’t,” Peter Baker, The Instances’s chief White Home correspondent, writes. “His favourite blunt instrument is just not army pressure however financial coercion.”

There was no ambiguity in Canada in terms of Mr. Trump’s proposed takeover. Politicians throughout the political spectrum reject it, and it has revived a way of patriotism amongst Canadians.

That’s a stark distinction to an earlier level in historical past. When what would turn out to be a part of Canada was nonetheless British North America, in 1846, tariffs threatened to destabilize the financial system, prompting financial anxiousness and concern.

As a part of a transfer towards free commerce, nevertheless, Britain ended a system that gave choice to exports of grain, lumber and wheat from Canada and different colonies whereas keeping out shipments from the United States and elsewhere with excessive tariffs.

It was dangerous information for Canadian farmers and shortly set off a panic amongst members of Montreal’s elite when that metropolis was the monetary and enterprise heart of the colony. Inside three years, they fashioned a bunch that revealed manifestoes urging Higher and Decrease Canada’s annexation by america.

The elimination of British tariffs “has produced essentially the most disastrous results upon Canada,” their 1849 manifesto proclaimed earlier than a conclusion that becoming a member of america was “inevitable” and that it was the signatories’ “responsibility to offer for and lawfully to advertise.”

Greater than 300 individuals signed it. Whereas the bulk have been members of Montreal’s English-speaking enterprise elite — together with names nonetheless mirrored in firms at the moment, like Molson and Redpath — additionally they fashioned an uncommon alliance with French-speaking nationalists beneath Louis-Joseph Papineau.

The motion failed to achieve traction in Toronto and the remainder of Higher Canada. A trade pact with the United States in 1854 that changed 21 % tariffs with duty-free entry for a lot of key Canadian exports to america brought on the annexation motion to wither away.

“The reciprocity deal places a nail into the financial finish of this argument — you might keep throughout the Empire and commerce with the U.S.,” Jeffrey McNairn, a historical past professor at Queen’s College in Kingston, Ontario, instructed me. “It was a second of great uncertainty and a confluence of political, financial elements and folks searching for an answer.”

  • Arsons, shootings and sabotage, Vjosa Isai experiences, are all a part of a unbroken battle over lobster in Nova Scotia that raises thorny questions on Indigenous rights, financial fairness and the conservation of sources.

  • Analysis into Ontario’s well being information has concluded that marijuana dependence “is a public health threat identical to alcohol” and that sufferers who developed it have been 10 occasions as prone to die by suicide as these within the common inhabitants and likewise extra prone to die from trauma, drug poisonings and lung most cancers.

  • A self-styled Canadian “pirate” stole tens of millions of dollars in cryptocurrency, prosecutors in Brooklyn say. The 22-year-old man stays at massive.

  • In The New York Instances Journal, Mireille Silcoff, a author and cultural critic primarily based in Montreal, writes that like many different Gen X girls she is now having “more and better sex than I ever would have thought attainable.”

  • In Actual Property, the What You Get function appears at $300,000 properties on Prince Edward Island.


Ian Austen experiences on Canada for The Instances and relies in Ottawa. Initially from Windsor, Ontario, he covers politics, tradition and the individuals of Canada and has reported on the nation for twenty years. He will be reached at austen@nytimes.com. More about Ian Austen


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