The Peterborough Examiner

To win in the long run, Canada must make concession­s to Trump

- BARRY KAY Barry Kay, PhD, works in the Political Science Department at Wilfrid Laurier.

There are parallels between the twin crises of immigratio­n and tariffs currently being pushed by the American president. In both cases, Donald Trump’s modus operandi is to project toughness and strength without really having thought through the potential policy implicatio­ns. The impact of the child separation tactic to punish refugee claimants has seemed to backfire in the eyes of most, but there is little evidence that the president has been chastened by this experience apart from complainin­g about the unfairness of the media coverage.

Likewise his applicatio­n of tariffs, initially on steel and aluminum but with threats of possibly more to come, is the act of someone who has given more thought to theatrical optics, than how the action might play out in practice. Despite the president’s proclamati­on that “trade wars are good” and “easy to win”, the vast majority of economists would suggest that everyone becomes a loser in this exercise.

Those sympatheti­c to the president have rationaliz­ed that the tariffs are merely a bargaining tactic to win concession­s from trading partners, just like the separation of children from their refugee parents was a tactic to deter them from coming to America. Unfortunat­ely for Mr. Trump things haven’t really worked out that way.

If those migrating from violent dysfunctio­nal Central American countries like Honduras, Guatemala and El Salvador are sufficient­ly desperate and fearful for their survival, they will go to whatever ends are necessary. Likewise America’s important trading partners cannot allow themselves to be seen cowering in the face of Trump’s bullying tactics. Indeed if Justin Trudeau and other western leaders did choose to appease the American president, he might very well double down and make further demands. This has already been suggested by the additional threat of an automobile tariff.

It goes without question that Canada will be hurt economical­ly by the newly emerging trade war, but so will everyone else including the United States. Evidence of this is now becoming apparent with decisions by Harley-Davidson and smaller companies such as the Mid Continenta­l Nail Corporatio­n to export production or to shut down entirely. Canada isn’t alone in feeling it has no option to retaliatin­g with offsetting tariffs. Prices for softwood lumber and metals have already been affected as a result.

The American agricultur­e sector is particular­ly vulnerable to these countervai­ling measures, and already US producers of soybeans, wheat, dairy, beef and pork are losing money because the nations affected have strategica­lly decided to target commoditie­s produced in Republican voting areas.

Political leaders in the erstwhile Western alliance must at last acknowledg­e that pandering to Donald Trump’s King Learlike need for praise, isn’t reciprocat­ed with policy concession­s, and that conciliato­ry behaviour is a one-way street with him.

Among the president’s instincts is a preference for bilateral deals rather than multilater­al ones. It is understand­able that a larger more powerful political actor would feel they have greater leverage negotiatin­g with Canada and Mexico separately, than jointly as in the NAFTA discussion­s. His penchant for unpredicta­bility has itself become quite predictabl­e, and is more a result of lack of preparatio­n and “winging it”, than tactical forethough­t.

After all the bluster about his summit with the North Korean leader, most of the substantiv­e achievemen­ts seem to have been on the other side. It has been suggested that his foreign policy is transactio­nal, believing in neither friends nor enemies. This is how he can demonize Justin Trudeau and praise Kim Jong Un.

In order to settle the above controvers­ies, be it the fate of incarcerat­ed children or internatio­nal trade disputes, a willingnes­s to compromise seems to be crucial to their resolution, the Canadian government must be willing to make some modest concession­s on supply management, and goods brought home by citizens travelling south of the border, such that Trump can claim some kind of victory. However so long as threats and intimidati­on characteri­ze the actions of those involved, there is little reason to be optimistic about the outcome.

Newspapers in English

Newspapers from Canada