‘What are we talking about?’ Experts respond to Trump’s ‘economic power’ words

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TORONTO – Incoming US president Donald Trump’s threats to use “economic force” against Canada and its industries are causing concern and disbelief.

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Speaking at a press conference on Tuesday, Trump said he could use economic incentives to push Canada to become part of the United States, and he also highlighted problems with the trade deficit and said the US does not need to buy Canadian lumber, milk or. cars.

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, said Trump’s comments show he doesn’t understand how interconnected the Canada-US auto business is.

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Trump has threatened to impose a 25 percent tariff on goods coming from Canada and Mexico, citing border security concerns.

Volpe said the threat is absurd and will lead to immediate pushback from American automakers and their shareholders through court action and other means.

Trump’s broad comments about Canada becoming part of the US, as well as his statement about taking the Panama Canal and Greenland, show he wants to sow chaos, Volpe said.

“I mean what are we talking about?” said Volpe.

He said these threats raise bigger problems than the Canadian parts industry and the auto industry itself.

“This is much bigger than a toolmaker in Windsor or a supplier of blow-molded plastics in Markham,” Volpe said.

“Some men just like to watch the world burn, and I think you’re one of them.”

Trump on Tuesday pointed to the US-Canada trade deficit as a subsidy, a comment he has made before.

“We don’t need anything they have,” he said.

“We have more than they have.”

Mount Royal University political scientist Duane Bratt said Trump’s comments show he doesn’t understand trade.

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“(Trump) sees it as a balance sheet. If they don’t need Canadian goods, why would they continue to buy Canadian goods? It’s not a subsidy,” Bratt said.

“Why do Americans buy so many Canadian products for hundreds of billions of dollars? Because the product is good, or the price is good, or a combination of both. “

Canada’s best strategy for now is to take a “wait and see” approach publicly, while avoiding any threats of retaliation, said Fen Hampson, a professor of international affairs at Carleton University and chair of its expert group on Canada-US relations.

He said Canada benefits from staying under the radar.

“This is something we have not been doing well; not climbing the wall, though,” Hampson said.

“If you are a small group, you are not afraid, which is unbelievable at first because a giant can trample you like chaos. So we have to be very smart, we have to be very smart and our Prime Minister has to keep his mouth shut. “

Prime Minister Justin Trudeau responded to Trump’s comments on Tuesday by saying, “There is not a chance in hell that Canada will become part of the United States.”

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“Workers and communities in both of our countries benefit from being great trade and security partners,” Trudeau added in a social media post.

As he has warned for now, Hampson said that Canada should always be ready to respond with its intended actions in case Trump does not deviate from his current rhetoric once he takes office. Hampson suggested that might mean responding by imposing prices and restrictions on products like California wine or Tennessee whiskey.

The federal government could also tax digital services that Canadians often use like Netflix, Amazon or Uber, or follow the US tourism industry by taxing those who travel to sunny places like Florida or California during the winter months.

“They’re going to see that, especially in Trump’s home country, where Canadians play a huge role in the domestic economy,” Hampson said.

This report by The Canadian Press was first published on January 7, 2025.

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