Canada’s trade war with Trump: A defining moment for the country

Prime Minister Carney has made it clear that we are in a trade war with the U.S., writes Peter Watson.

Shortly after Canada walked away from the tariff negotiations with the U.S., a reporter asked if Canada was in a trade war during a press conference.

The answer, of course, was yes.

Mr. Carney expanded his answer by stating: “You are at war when you get attacked.”

Canada is a member of NATO, a defensive alliance, and if one country is attacked, the others must come to its defence. Our attack came in the form of tariffs designed to weaken our country.

Canada is in a trade war — officially

The real question, however, is this: will other NATO allies come to our defence? We have a recent example from months ago: President Trump threatened to take over Greenland, which is legally tied to Denmark, a NATO member.

During the continued U.S. threats against Greenland, President Trump flew to Europe for the Davos meetings, and shortly after his plane landed, he was asked to join a small meeting. Immediately after the meeting, he declared that he had won the Greenland issue and got all the demands he wanted.

The NATO question: Will allies help?

He always declares victory, but it was clear to me that several European leaders explained the negative consequences against the U.S. if it invaded Greenland.

The difference now is Canada is saying no to President Trump’s political tactics. It might be a costly move, but the best investment we made was when our leaders walked away from the negotiating table.

“Canada Strong” was a brave political slogan designed through Prime Minister Carney’s leadership.

But now, “Canada Strong” for all of us has become a way of life.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com.