Canada's Trade Spat with Trump: A Battle for American Influence
Canada's Prime Minister Mark Carney pulled out of a new trade agreement with the US at the last minute, citing unfair demands and cultural appropriations. However, Victor Davis Hanson believes that Canada's actions were motivated by political reasons, rather than genuine concerns about sovereignty or culture.
The main issue was the US demand for symmetrical trade, which would have required Canada to pay around $10-15 billion more in tariffs. This was not a significant burden for Canada, which runs a chronic surplus of around $50-70 billion per year.
Hanson suggests that Carney's decision was driven by a desire to appeal to the Democratic Party and help left-of-center politicians in the US. He also points out that Canada has many problems, including a sluggish economy, high immigration rates, and a failure to meet its defense responsibilities.