The Canada-U.S. Trade War Under Trump: A Betrayal of Economic Partnership

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The Canada-U.S. Trade War Under Trump: A Betrayal of Economic Partnership

Kenroy
Mar 19, 2025
3 min Read

For decades, Canada and the United States enjoyed one of the most prosperous trade relationships in the world. But then came Donald Trump, with his reckless and ignorant trade policies, igniting a trade war that hurt both nations—though, let’s be honest, Canada got the short end of the stick. What should have been a mutually beneficial partnership turned into an economic battleground, with Canadian industries, workers, and consumers paying the price for Trump’s disastrous, short-sighted trade war.

Trump’s War on Canada

The whole mess started in 2018 when Trump, under the flimsiest excuse of "national security," slapped absurd tariffs on Canadian steel (25%) and aluminum (10%). Yes, you read that right—he claimed Canada, America's longest-standing ally, was somehow a security threat. This wasn’t about protecting Americans; it was about his ego, playing to his base, and pushing a protectionist agenda that backfired spectacularly.

Canada had no choice but to retaliate. We hit back with tariffs on U.S. whiskey, orange juice, and dairy—targeting industries in key American swing states. But why were we even put in this position? Canada has always been a fair trading partner, yet we were treated like an enemy.

And then there was the whole NAFTA debacle. Trump, in his infinite wisdom, called it "the worst trade deal ever" and strong-armed Canada into renegotiating it into the United States-Mexico-Canada Agreement (USMCA). His tactics? Threats, economic bullying, and pure disregard for diplomacy. The entire process caused massive uncertainty for businesses, delaying investments and messing with supply chains across North America.

The Damage to Canada

Trump’s economic warpath had immediate and painful consequences for Canada:

Manufacturing Took a Hit – Steel and aluminum producers in Ontario and Quebec faced massive cost increases, layoffs, and declining exports. All because of one man’s arrogance.
Job Losses and Economic Chaos – Thousands of jobs were put at risk as businesses faced skyrocketing costs. The uncertainty caused by Trump's erratic decisions led to stalled investments and instability.
Higher Costs for Everyday Canadians – The price of goods shot up thanks to tariffs on U.S. products. Canadians were forced to pay more for things like ketchup, appliances, and orange juice. What a joke!
Forced to Look Elsewhere – Canada, sick of being jerked around by its so-called "ally," intensified efforts to trade with Europe and Asia. Deals like the CPTPP became more important as we realized the U.S. under Trump was an unreliable partner.

America’s Self-Inflicted Wounds

Trump’s trade war wasn’t just bad for Canada—it was a disaster for the U.S. too. His "America First" nonsense backfired in ways even his most devoted followers couldn't ignore:

Farmers and Producers Suffered – Canada struck back with tariffs targeting American dairy, whiskey, and auto industries. U.S. farmers, already struggling, took a major hit.
Manufacturing Costs Soared – U.S. industries that depended on Canadian steel and aluminum saw production costs spike. The auto industry, construction, and aerospace all felt the squeeze.
Job Losses on Both Sides – While Trump claimed he was "saving American jobs," his policies actually caused layoffs in industries dependent on cross-border trade.
Destroyed Trust with Canada – Canada has been the U.S.’s most loyal trade partner, but Trump’s reckless actions strained relations and forced us to rethink our reliance on the U.S. market.

The Aftermath: Cleaning Up Trump’s Mess

Thankfully, by 2019, after months of economic pain, the U.S. finally lifted the steel and aluminum tariffs on Canada. But the damage was done. Businesses had already suffered, supply chains had already shifted, and Canadians had been forced to rethink how much we could trust our so-called "friend."

The signing of the USMCA in 2020 provided some stability, but let’s not kid ourselves—Canada had to fight tooth and nail to stop Trump from completely gutting the agreement. And while things have somewhat returned to normal, the scars of this trade war remain. Canada learned a tough lesson: we can’t trust the U.S. to play fair under bad leadership.

Final Thoughts: Never Again

The Trump trade war was nothing short of a betrayal. Canada stood by the U.S. through thick and thin, and in return, we got slapped with unjust tariffs, economic instability, and blatant disrespect. But we’re resilient. We fought back, we adapted, and we won’t forget how we were treated.

If there’s one lesson to take from this mess, it’s that Canada needs to stand strong, diversify its trade relationships, and never allow itself to be bullied by an American president ever again.