Not another wall — tariffs on Canada will harm California
It goes without saying that the United States has no better friend or ally than Canada. We have one of the longest, most peaceful and mutually beneficial relationships of any two countries in the world. We share similar values and have fought side-byside time and again to defend them.
Canada is also the United States’ biggest customer — by far. In fact, the U.S. sells more to Canada than to China, Japan and the United Kingdom combined. In California, over 1.2 million jobs depend on trade and investment with Canada. California exported more than $26.2 billion worth of goods and services to Canada in 2017.
Trade and investment between Canada and the United States strengthen both economies. Our integrated supply chains underpin the competitive economic backbone of North America. In other words, we don’t just sell things to each other; we produce things together for the global market — from autos and aircraft to agricultural products, as well as a range of services and investment products.
Given these ties, the recent U.S. decision to impose tariffs on Canadian steel and aluminum shipments for national security reasons is totally unacceptable. It is entirely inappropriate, indeed insulting, to view any trade with Canada as a national security threat to the United States. These U.S. tariffs will unravel North America’s integrated economy and jeopardize millions of American jobs.
The U.S. and Canadian steel and aluminum industries are a deeply integrated sector with significant cross-border operations. Many American firms rely on Canadian iron, steel and aluminum imports as raw materials or components of finished products in the automotive, manufacturing, construction, energy, aerospace, defense and agri-food sectors. Most U.S. and Canadian steel and aluminum workers share the same union.
Canada is challenging these illegal and counterproductive measures under NAFTA and at the WTO, and will take retaliatory measures on July 1. For California, these countermeasures would affect over $676 million in trade across sectors ranging from steel and aluminum to agriculture and agrifood products. The countermeasures will remain in effect until the U.S. removes its tariffs on Canadian aluminum and steel.
Canadian Prime Minister Justin Trudeau has been clear: “Americans remain our partners, friends and allies.” Canadian actions in response to the unilateral, unjustified and nonsensical decision to impose tariffs on Canadian steel and aluminum “are not about the American people. The ties of commerce, friendship and, in many cases, family between Americans and Canadians are undiminished — indeed, they have never been stronger.”
I ask you to consider this — Canada is not a national security threat to the U.S. Reach out to your elected officials to stress this point and insist that Canada be permanently exempted from any tariffs and restrictions on steel and aluminium. These tariffs do not make sense, and they are harmful to Americans and Canadians alike.