By Matt Underwood Canada is preparing a strong response to what’s being perceived as an attack from the US, and imposing tariffs is a very real possibility. This isn’t just a federal response; provincial governments, like Ontario’s, are heavily involved, recognizing the significant impact on their automotive industry centers such as Windsor, Brampton, Etobicoke, Markham, and the Waterloo region—the heart of the Great Lakes auto cluster.
The situation is viewed with a seriousness that goes beyond mere economic considerations. There’s a widespread sentiment that the current US administration is actively harming its own interests, both domestically and internationally, and that this behavior warrants a forceful counteraction. The belief that Canada will not back down, regardless of who’s leading the country, is strongly held.
The ongoing discussion about tariffs centers on the principle of reciprocity. The prevailing opinion is that until all tariffs imposed by the US are removed, Canada will respond in kind. Selective targeting by the US is unlikely to succeed; a comprehensive response is expected.
A complicating factor is the presence of Alberta, whose leadership is seen as aligning itself with US interests against the broader Canadian agenda. However, unlike the EU’s relative tolerance of similar behavior from Hungary, there’s less patience for this within Canada. The perceived lack of loyalty to Canada’s national interests is a growing concern.
The potential for significant economic fallout from these actions isn’t overlooked. The bailout of the Big Three automakers could become incredibly expensive in the coming years, raising concerns about future financial strain. This has led to suggestions of imposing a 100% tariff on Tesla and actively supporting alternative car manufacturers like BYD.
The anger and frustration are palpable, extending beyond the government to the general population. Many Canadians are actively choosing to avoid US products and are looking towards alternative trading partners and strengthening domestic industries. The prevailing view is that reasoning with the current US administration is futile. There’s a distinct lack of faith in any attempt to find a rational solution.
There’s a growing demand for strategic investments in Canadian industries, particularly in the IT sector and the development of Canadian apps, to reduce reliance on the US. Alberta’s actions are viewed negatively, even embarrassing, with calls for the province to diversify its economy and align itself with Canada’s national interests.
The call for decisive action is prominent, ranging from imposing significant tariffs, canceling contracts like the F-35 deal to severing ties with the US and focusing on internal development and diversification. Nationalization of American assets in Canada, closing the border to Americans, and other more radical steps are also being discussed.
This sense of urgency and readiness to act is shared across the political spectrum. While some express worry about the potential economic impact, there’s a strong belief that Canada has the resources and resilience to weather the storm, provided there’s smart investment in Canadian industries and a focus on building a stronger, more independent economy.
The response to the US actions is not just about economic retaliation; it’s about asserting Canada’s sovereignty and its refusal to be bullied. There is a widely shared understanding that the current US administration’s actions are reckless and self-destructive, and Canada will not stand idly by while its interests are threatened. The expectation is that the countermeasures will be swift and significant, reflecting the depth of frustration and determination within Canada.
The strong partnership between the federal and Ontario governments demonstrates a united front against these perceived attacks. The message is clear: Canada is prepared to defend its interests, and the ramifications could be substantial for both nations. The focus is shifting towards long-term strategic goals of economic independence and stronger ties with international allies outside of North America.