Americans must pressure Trump on trade: Heyman

Tariff war could get ugly, former U.S. envoy warns

The ex-United States ambassador to Canada is calling on Americans to pressure President Donald Trump president to end the escalating trade war with Canada.

In an Op-Ed in USA Today, Bruce Heyman said everyone should worry about the ongoing trade war, which will see Canada implement retaliatory tariffs on U.S. goods on July 1, because it could quickly spiral into an economic disaster that will hammer both countries. Heyman remarked that Trump’s sudden decision in March to implement a 25 per cent tariff on Canadian steel, and a 10 per cent tariff on Canadian aluminum, sparked a measured response from Canada to implement its own trade tariffs.

“This should not have surprised anyone, nor should Trump’s subsequent Twitter outburst — in which he threatened to impose a 25% autorelated tariff after departing the tumultuous Group of Seven meeting in Canada.

“But it should worry everyone,” he wrote. “The threatened auto-related tariffs would have an even larger negative effect on American companies and consumers, as our automobile manufacturing supply chain is completely intertwined with Canada’s; car parts cross the border multiple times in the manufacturing process. We seem to be on the road to a tit-fortat trade war without brakes.”

Canadian Foreign Affairs Minister Chrystia Freeland upped the ante Friday, unveiling an extensive final list of $16.6-billion worth of American imports that will be hit with retaliatory tariffs starting this weekend.

She also released details of a financial aid package for industries and workers caught in the crossfire — and it includes up to $2 billion in fresh funding and loans for Canada’s steel, aluminum and manufacturing sectors.

“It is with regret that we take these countermeasures, but the U.S. tariffs leave Canada no choice but to defend our industries, our workers and our communities, and we will remain firm in doing so,” Freeland said in a statement.

Heyman, particularly vocal on Twitter about Trump’s trade policies as they pertain to Canada, also challenged Trump’s reasoning for the new tariffs. The president has claimed the tariffs are necessary because Canadian products are a threat to U.S. national security.

The former ambassador pointed to recent testimony given by U.S. Commerce Secretary Wilbur Ross before the Senate. Ross admitted to U.S. senators Canada is not a threat to U.S. national security and that, in fact, the U.S. has a trade surplus with Canada when it comes to steel.

“This completely debunks the national defence premise under which the president first imposed the tariffs that sparked this simmering trade war,” Heyman writes.

He uses his op-ed column to urge American government officials to return to negotiations over the North American Free Trade Agreement. He appeared to chastise the U.S. government for walking away from NAFTA negotiations earlier this year. While Canada’s Foreign Affairs Minister Chrystia Freeland has confirmed that negotiations about NAFTA “will continue” with the U.S., no dates have been set.

“It is America that is refusing to come to the table to discuss NAFTA overall,” Heyman writes in USA Today. “Canadian Prime Minister Justin Trudeau wants to give negotiations a chance without trade war escalation, but negotiations require two willing parties.”

Heyman warns Americans that Canadians are growing frustrated with the stalled talks and that already many people from Canada are cancelling shopping trips and vacations to the United States, “costing our country millions in tourism dollars.”

He implored the president and the American people to mend the rift between the U.S. and Canada before this trade war escalates any further.

Heyman’s remarks come at a time when many Canadians are taking a stand against the trade policies of the Trump Administration.

“Buy Canadian” campaigns are being supported by grassroots organizations and labour unions, including national union Unifor. Finance ministers from all Canada’s provinces have denounced the tariffs. The topic became the centre of attention at a twice-yearly gathering of the ministers held in Ottawa on Tuesday.

Ottawa Mayor Jim Watson announced last week that he had declined his invitation to the annual Fourth of July bash, hosted by U.S. Ambassador Kelly Craft at her residence in Rockcliffe Park, in protest.