Trade War
In my last posting, on Friday, August 21 (my birthday, as it happened), I discussed the long history of American efforts to annex Canada. Those attempts served to unify Canada and create a sense of nationhood. They culminated in Donald Trump’s recent threats to incorporate Canada as the 51 st state. Little did I know when I sent you that essay how much the situation would escalate in just a couple of days. The US attacked Canada once again, not with armed forces this time, but in a trade war. In case we are in any doubt it is a trade war, that is exactly the term used by Prime Minister Mark Carney in an aggressive speech on Saturday, August 22. Trade wars can be devastating to a country’s production, its jobs and its people’s incomes. How did we get here? Last month, Trump announced a new tariff of 50% against a broad set of imports from Canada to the US, to go into effect on August 19. The tariffs violate the CUSMA trade pact between Canada, the US and Mexico. The US Suprem...