Link to article: https://www.reuters.com/world/americas/canada-considers-retaliatory-tariffs-orange-juice-other-us-goods-paper-says-2025-01-09/
President-elect Donald Trump vowed that starting his first day in office, he would be imposing extremely high tariffs on all products from Mexico and Canada. This is because of the flow of migrants and fentanyl coming from both borders. Following this promise, Canadian governments have sprung into action increasing border monitoring and meeting with Trump officials. Now, Canada is considering retaliatory tariffs on items such as orange juice, ceramic goods, steelware, glassware, and some plastic products. The retaliatory items list is not final, and subject to change. Trump has not yet indicated if his stance on the tariff will change.
The US and Canada have long been global allies and partners. The last time Canada and America were against each other was the War of 1812. Therefore, the tariff threatened by Donald Trump (25%!) is going to be an interesting addition to their relationship. Canada will be seriously hurt by this, and retaliation seems like a natural reaction. We also will thankfully see some action taken at our Northern border with all the problems it has had. This act the US has taken to up Canadian tariffs is not a revolutionary feat, as we have been known to use our power to make countries follow our lead. The difference in this time and previous times is the US’s approach to IR. While we used to act as the world’s policeman, we now are making an effort to focus on our country’s interests and needs.
While the three North American countries (Mexico, US, and Canada) have historically been interdependent on each other, the US is stepping back from that and instead focusing on its needs. They have been involved with each other through a free trade agreement. This agreement displays the core of reciprocity, where each country gave up their ability to tariff products in order to freely trade among themselves. This emphasis on trade is a pillar of Classical Liberalism. Now, the US feels as if they are sacrificing more than the other countries because of the fentanyl and immigrants entering its borders. Now, the US is threatening high tariffs.