By Chris Gardner, President, Independent Contractors and Businesses Association.
This piece first appeared in the Sunday Province on July 15, 2018, and is available for all media outlets to publish, free-of-charge.
Last Halloween, Justin Trudeau launched a thousand photo ops by wearing a Superman costume into the House of Commons. Now it’s time for the Prime Minister to show Canadians what kind of Man of Steel he wants to be.
Canada is in the early stages of a potential all-out trade war with the United States, brought about by the general anti-free trade leaning of the Trump administration and specifically by the new tariffs imposed by Washington on American imports of Canadian steel and aluminum.
In response, Canada levied $16.2 billion in tariffs on U.S. goods entering Canada. The tariffs were strategically chosen to apply to items produced in targeted U.S. congressional districts so that American communities that depend on Canadian markets feel pain. By doing so, Canadian officials hope to apply enough pressure on congressional representatives that the Trump administration reconsiders their ill-advised tariff measures. So far so good.
However, included with Canada’s retaliatory measures is a 25% duty on imported steel products, which will impact B.C., whose sole source of Canadian steel is a relatively small mill in Edmonton that supplies just one-tenth of what B.C. needs. Local demand for steel cannot be met by steel mills in central Canada – the reality we face in B.C. is that nearly all our steel comes from the U.S., Turkey and Asia.
Since the North American Free Trade Agreement came into effect more than 25 years ago, the continent’s economy has evolved into a complex, intertwined series of supply chains that help reduce costs by increasing efficiencies and by building mutual competitive advantages. The benefits have been substantial, mutual, and in the best interests of both countries. Read more