Dear Prime Minister Do Not Impose Retaliatory Tariffs: 3 Reasons

Do Not Impose Retaliatory Tariffs: 3 Reasons

First reason; Impose tariffs and do that which you do not want the other to do.

The PM said “The American administration has made a decision today that we deplore and obviously is going to lead to retaliatory measures, as it must, but we regret that. We would much rather move in partnership, understanding, that no two countries have economies as interwoven and mutual beneficial as Canada and the United States”  (https://www.youtube.com/watch?time_continue=159&v=sLhw-rgF-Q8)

Imagine the proper PR from the American television gambit. Instead of the above, the narrative could have been non-violent in tactic. “No two countries have economies as interwoven and mutual beneficial as Canada and the United States, which is why we will not impose tariffs. It will raise the cost of manufacturing in parts of Canada that rely of American Steel, just as your tariff has done to American producers. For better or for worse (cnd ref) Canadians view Americans as family, as an ally. We deplore the decision. We don’t understand it. We want it resolved. We may need the support of the American people in our effort to understand so what is fair and just may emerge.”

“Chuck Bradford, a U.S.-based metals analyst, said there would be “no effect” on Canadian steel producers. Their U.S. customers, he said, “may not have any choice: there may not be any steel available of the grades they need.” And even if there is, Bradford said, they may be most comfortable sticking with their previous supplier.“If you’re an automaker...you’d like the supplier that you have, because you know your equipment works well with their type of steel,” he said.Jean Simard, president of the Aluminum Association of Canada, said it is “impossible” for American aluminum producers to step in and fill that country’s demand. He said the tariffs would harm the manufacturers that require aluminum.” https://www.thestar.com/news/canada/2018/05/31/us-will-hit-canada-with-steel-and-aluminum-tariffs-as-of-midnight-tonight.html)

The second reason, is protectionist policies lead to a deterioration of relation between nation states. In 1929 the Smoot-Hawley act had the Hoover Admin fielding protest from 23 trading partners including Canada who in retaliation imposed extra duties on American goods while lowering UK tariffs. Mac King’s intention was to move Canadian customers away from American products (https://www.economist.com/node/12798595). Real trust is based in symbiosis, not dominance. This requires one to show weakness, to turn ones back because the other will not stab it but guard it. The prime example is the world’s longest unprotected border. This aint 38^th parallel. It’s a beautiful relationship earned through many years.

The third Reason: People have called Trump a bully and said that the only way to deal with a bully is to hit back. But the PM is not hitting Trump, his hopefully hitting Trump’s base with targeted tariffs, like the Chinese did, because bullies have low self esteem and it’s his base that fuels him. However, you can also take his base away with the moral high ground. You don’t need to hit a bully, especially if they are huge, it’s stupid. You can turn their friends against them; you can cut off support from the base with practical threats such as targeted tariffs, but with acceptable timelines and communication. Punishing to quickly a possible ally is ill advised.   

So please don’t enact Tariffs. They will hurt Canadian producers, hurt relations between nations, and remove a possible ally away. Take the high road, walked by the famed lumberjack canoeist of 1929, Mr. Sonny Waze and don’t blow down that cold regretful wind.