There was a feeling of “here we go again” a few days ago when the Trump administration announced American tariffs on Canadian aluminum.
It’s the same political ploy that Trump used a couple of years ago to try to curry favour with some American manufacturers.
But Donald Trump, who is clearly not the sharpest pencil in the box, didn’t understand that U.S. tariffs actually hurt American industries that rely on Canadian aluminum to manufacture their products, which begs the question, why repeat such a wrongheaded policy?
I won’t waste time attempting to apply logic to Trump’s policies, but suffice-to-say that many American industries and local politicians have been loud and vocal in their opposition about Trump’s idea to re-instate the aluminum tariffs.
Within hours of Canada announcing retaliatory tariffs targeting specific American manufacturers, the Trump administration walked back its intent to apply those tariffs.
So, why the change?
The obvious reason is that there is an election in a few weeks and Trump is trailing in many of the states that would have been impacted by Canada’s retaliatory sanctions.
Our Canadian economy can’t deliver a knockout punch to respond to Trump’s bully tactics, but we can kick them in the shins enough that American states will push back on Trump’s vindictive policies.
In this crucial economic stare down, it was the Trump administration that blinked and backed down.
That makes this a good day for the Trudeau government, and a good day for Canada.