Thursday, October 1, 2026
Idon’t know much about the tariff system, but I know enough about economics and politics to say that President Trump’s new proposed 50 percent tariffs on Canada would be the most foolish things ever done by a president in recent American history. I know these proposals are always subject to negotiation, but why pick on our second-largest trading partner at the worst possible time?
The Canadians have been our best friends for as long as I can remember. They were there for us during World War II, when they lost over 40,000 men in battle. They have contributed soldiers to many of our wars, and have stood up for us at the United Nations and around the world. One of the reasons behind the latest insanity is the president’s statement that he is mad at Canada because of the smoke that has drifted south to the United States.
The best way to describe the latest tariff proposal is that it would be a self-inflicted wound that would hurt American consumers the most. There is a basic fact that we fail to understand. The average reader may think that new tariffs would punish Canadians, but when new duties are imposed on Canadian autos, wine, hockey sticks, dairy products and cement, American distributors have to pay them, and then they pass the cost on to American consumers. The family in Levittown that buys Bobby a hockey stick pays extra because of the tariff hike.
Lots of other bad things happen when new tariffs are imposed. Canada, in retaliation, has imposed its own 25 percent counter-tariffs on U.S. vehicles, steel and aluminum. These tariffs hurt American builders and potential homebuyers who can’t afford higher costs when they’re seeking to purchase their first home. Tariffs on auto parts disrupt production lines and costs manufacturing jobs on both sides of the border.
Tariffs have another impact on countries like Canada. China is eager to establish new relationships with nations that will buy its goods. In 2025, Canada announced a new comprehensive trade agreement with China that, among other things, will allow the sale of Chinese autos in Canada. Industry specialists say that Chinese cars are high quality and much lower in price, and will be a potential threat to American auto manufacturers.
One of the worst results of our feud with Canada is its impact on American businesses. Tourism in many of our northern border states has been badly damaged by this unnecessary battle. And one of the biggest losers has been Las Vegas. Hotel operators have seen a 70 percent drop in Canadian visitors, which has caused large layoffs of hospitality employees.
When arbitrary tariffs are imposed on a friendly nation, there are other consequences. Other countries watch American actions and conclude that we can’t be trusted if we economically attack a longtime friend. To add to our unreliability, the U.S. has a trade agreement, negotiated by Trump six years ago with Canada and Mexico, which was scheduled to be renewed this month. The president has stated that he won’t honor the terms of that agreement.
The crowning touch to the U.S.-Canada breach has been Trump’s threats to make Canada our 51st state, and his frequent statements deriding Canadian Prime Minister Mark Carney. Trump supporters will say this is just the president doing his thing, and that he isn’t really serious, but words have consequences, and many Trump watchers around the world don’t have such an expansive sense of humor.
Earlier this year, the Supreme Court ruled that the president didn’t have the unilateral authority to impose sweeping, open-ended tariffs under the 1977 International Emergency Economic Powers Act, and that only Congress has that power. Trump is now using a 1930 law to justify his actions, which will likely be challenged in court.
At a time when the nation is juggling a war with Iran, higher gasoline prices and the continuing issue of affordability, fighting with Canada is just plain dumb.
Jerry Kremer was a state assemblyman for 23 years, and chaired the Assembly’s Ways and Means Committee for 12 years. He currently chairs the Capitol Insight Group, a government relations firm.
