Trump Appeasement Fails, So Trudeau Takes the Gloves Off
https://www.bloomberg.com/news/articles/2018-06-01/trump-appeasement-fails-so-trudeau-takes-the-gloves-off
Canada had pushed for an exemption from Trump’s tariffs -- thinking, now naively, there’d be a perk to being a neighbor, ally and largest buyer of U.S. goods. Trudeau had bitten his tongue through skirmishes over airplanes, lumber and North American Free Trade Agreement talks.
That all changed Thursday when Canada, along with Mexico and the European Union, lost exemptions to the U.S. metal tariffs.
Trudeau tore into the Trump administration, if only by the standards of stereotypical Canadian politeness. He fired back with tariffs on U.S. exports of everything from whisky to motorboats to orange juice.
He said the legal basis of tariffs -- U.S. national security -- was an affront to Canadian soldiers who died fighting alongside Americans in numerous global battles.
“Let me be clear: These tariffs are totally unacceptable,” a visibly frustrated Trudeau told reporters in Ottawa, calling the measures inconceivable and deplorable.
“This is not about the American people. We have to believe that at some point, their common sense will prevail but we see no sign of that in this action today."
It’s a tone change for the “sunny ways” Trudeau. Canada is a close U.S. military ally and the top U.S. export market, more than the U.K., Japan and Germany combined. It sells the U.S. more steel and aluminum than anyone else, in part because of deeply integrated auto and defense sectors.
Trudeau cracked down on Chinese steel imports for Trump, and U.S. data show that it has a trade surplus with Canada. None of it mattered.
“There was the broad lines of a decent win-win-win deal on the table that I thought required that final deal-making moment,” he said.
Then Vice President Mike Pence called and said Trudeau could only see Trump if he agreed to a U.S. demand for a Nafta sunset clause. Trudeau refused and the meeting never happened.
Buoying Trudeau’s tone change is near-unanimity in Canada about the tariffs.
Opposition parties have largely supported Trudeau’s approach with Trump and on Nafta. The nation’s largest private-sector union, Unifor, applauded the retaliatory tariffs. “Make no mistake — this is a full-on trade war,” President Jerry Dias said.