TRADE WAR: Trump Moves On Canadian Dairy


US President Donald Trump is escalating the trade battle between the United States and Canada.

After announcing a 20% tariff on Canadian softwood lumber, Trump tweeted the following on Tuesday:

The key dispute is the supply management system – which amounts to a government-enforced quota and tariff system which massively raises the prices of milk and cheese produced outside of Canada.

The Trump Administration sees that tariff as incompatible with fair trade between the US and Canada. As a result, they are pushing back against it – now more publicly than ever.

Increased pressure as NAFTA negotiations take place

Immediately after Trump’s election win, Justin Trudeau announced that he was happy to renegotiate NAFTA. He made the statement unprompted, and gave away significant trade leverage. Now, it appears the Trump Administration is going to keep pushing to get the most favourable deal possible for the United States, regardless of the impact on Canada.

Trudeau has leverage he could use, but he has so far refused to do so. For example, the United States wants their NATO allies to increase defence spending to 2% of GDP. Trudeau could use a commitment to strengthen Canada’s military (which we should be doing anyway), as a tool of leverage in negotiations over softwood lumber & NAFTA.

Instead, he is cutting the military, as spending is now at a historic low of just 0.88% of GDP.

It’s a big missed opportunity, and one that could have serious negative consequences for our country as we face a relentless negotiator in the White House.

Spencer Fernando


5 comments Add yours
  1. Trump is running his country as it should be – he has some of the brightest people backing him (ok ok and some dim ones) and Canada has to buck up to keep up – unfortunately we Canadians are stuck with a fool for a ?leader? with backers who are more interested in giving our country over to in invasive elements that the US and the rest of the world are finally waking up to and you all know what i’m talking about . Trudeau doesn’t give one flying fart about softwood lumber or dairy – as a sidebar fun prediction – Ft. McMurray will become the Dearborn Michigan of the north .

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