Bleeding Canada towards annexation

Hey there, time traveller!
This article was published 18/02/2025 (389 days ago), so information in it may no longer be current.

Over the past month, Canadians have struggled to discern the strategic objective behind U.S. President Donald Trump’s decision to impose a 25 per cent tariff on Canadian steel and aluminum exports into the U.S., as well as the (currently paused) tariff on all Canadian goods, products and commodities exported to the U.S.

At first, it appeared the tariff threat was a lever to force us to stop the flow of fentanyl and illegal immigrants into America, but that no longer appears to be the reason. Some have suggested the tariffs are designed to generate revenue for the U.S. government to finance huge tax cuts that Trump plans to implement.

Others have theorized the threats are designed to push Canada and Mexico to negotiate a new continental trade agreement, on terms even more favourable to the U.S., but the current agreement is already up for renegotiation next year.

Many have concluded, based on Trump’s own statements, that the tariffs are intended to weaken Canada’s economy and create so much instability that we would be willing to become America’s 51st state. That would give America unfettered access to our water and natural resources.

It is possible that more than one of those theories may be true, but the primary reason for the tariffs to levied against Canada — and the threat of reciprocal tariffs that would be charged on all goods, products and commodities imported into the U.S. from all nations — appears to be Trump’s desire to make the American economy great again, while simultaneously undermining and ultimately absorbing Canada.

Last Thursday, when he announced his government would investigate the possibility of imposing new reciprocal tariffs, Trump emphasized that the sting of those tariffs could be avoided if companies currently exporting into the U.S. move their operations to America.

“If you build here, you have no tariffs whatsoever,” he said. “And I think that’s what’s going to happen. I think our country is going to be flooded with jobs.”

It is impossible for exporters of commodities such as steel, aluminum, electricity, oil and gas to shift their operations to the U.S., but that is not the case for many manufacturers of goods and providers of services.

For example, Ford Motor Co. chief executive Jim Farley warned last week that Trump’s 25 per cent tariffs on imports from Canada and Mexico would “blow a hole” in the American auto industry. That may be true today, but the harm can be avoided if Ford moves its manufacturing activity to the U.S.

Closer to home and on a smaller scale, there have been several reports about how Canadian companies with American customers are responding to the tariff threat. Many have already opened facilities across the border and are planning to expand those operations in order to minimize risk. Others desire tariff-free access to U.S. products that would likely be subject to retaliatory tariffs imposed by the Canadian government.

In almost every case, the result will be more jobs and investment in America and fewer jobs and lower investment here in Canada.

For weeks, Canadians have been discussing Canada’s response to Trump’s tariff threats as if our business community is a monolith that moves in lockstep. They have assumed there would be a uniform, combined response throughout the nation. Neither assumption is true. Canadian business owners will each decide how to respond to the threat based on their unique interests and priorities.

Combine that reality with lower taxes and the many inducements that U.S. federal, state and local governments offer to attract businesses and it becomes obvious that Canada is in a competitive crunch to keep those companies, and all those jobs, north of the border.

That’s what Trump and his advisers are banking on. They know that neither the Canadian government, nor any provincial government, can prevent a Canadian business from setting up shop in America. They also know that many Canadian business owners may love their country but aren’t willing to go bankrupt for it.

Viewed from that perspective, Trump’s strategy becomes clear: Bleed Canada’s economy dry by preventing Canadian commodities from entering the U.S. market, and by enticing Canadian businesses to move to the U.S.

If successful, the scheme will make America richer and Canada poorer — and it will make us ripe for annexation.

Deveryn Ross is a political commentator living in Brandon.

deverynrossletters@gmail.com X: @deverynross