Trump Appeasement Fails, Trudeau's Gloves Come off

Justin Trudeau
David Paul Morris/Bloomberg News

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After more than a year of trying to make nice, Justin Trudeau finally appears to be fed up with Donald Trump.

Canada had pushed for an exemption from Trump鈥檚 tariffs 鈥 thinking, now naively, there鈥檇 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 May 31 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 whiskey to motorboats to orange juice. He said the legal basis of tariffs 鈥 U.S. national security 鈥 was an affront to Canadian soldiers who died fighting alongside Americans in numerous global battles.



鈥淟et me be clear: These tariffs are totally unacceptable,鈥 a visibly frustrated Trudeau told reporters in Ottawa, calling the measures inconceivable and deplorable. 鈥淭his 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.鈥

It鈥檚 a tone change for the 鈥渟unny ways鈥 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 United States 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.

NAFTA Fallout

Underscoring his frustration, Trudeau offered a rare glimpse into high-level talks with Trump鈥檚 administration to update the North American Free Trade Agreement, which the president regularly threatens to tears up.

Trudeau said he and Trump were planning to meet this week because a NAFTA deal was in reach.

鈥淭here was the broad lines of a decent win-win-win deal on the table that I thought required that final deal-making moment,鈥 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.

Trump on the night of May 31 offered a fresh warning to Trudeau that any renegotiated trade agreement must be 鈥渁 fair deal.鈥

鈥淭he United States has been taken advantage of for many decades on trade,鈥 the president said in a statement released by the White House. 鈥淭hose days are over. Earlier today, this message was conveyed to Prime Minister Justin Trudeau of Canada: The United States will agree to a fair deal, or there will be no deal at all.鈥 Around the same time, Trump tweeted: 鈥淔AIR TRADE!鈥

Earlier in the day, Trudeau鈥檚 foreign minister, Chrystia Freeland, called the retaliatory tariffs 鈥渢he strongest trade action Canada has taken in the post-war era.鈥 The finance minister, Bill Morneau, said Treasury Secretary Steven Mnuchin was going to get an earful at the Group of Seven finance ministers鈥 meeting that began May 31 in Whistler, British Columbia. 鈥淚 don鈥檛 want to kid you, we will need to talk about this first and foremost,鈥 he said. Trudeau鈥檚 defense minister, a former soldier, also teed off: 鈥淚 find it quite insulting, especially for somebody like myself who served alongside the U.S.,鈥 Harjit Sajjan said.

Trudeau, a regular advocate of free trade and multilateralism, placed the blame squarely at Trump鈥檚 feet. 鈥淭oday鈥檚 decision belongs entirely to the U.S. administration. That was their choice,鈥 he said. 鈥淭he Trump administration simply doesn鈥檛 understand its measures will hurt Americans,鈥 he said.

鈥淲e will continue to make arguments based on logic and common sense and hope that eventually they will prevail against an administration that doesn鈥檛 always align itself around those principles.鈥

鈥業nexhaustible Vanity鈥

Buoying Trudeau鈥檚 tone change is near-unanimity in Canada about the tariffs. Opposition parties largely have supported Trudeau鈥檚 approach with Trump and on NAFTA. The nation鈥檚 largest private-sector union, Unifor, applauded the retaliatory move. 鈥淢ake no mistake 鈥 this is a full-on trade war,鈥 President Jerry Dias said.

Roland Paris, an academic and former Trudeau foreign policy adviser, said he declined a meeting with the U.S. embassy on principle to protest the 鈥渁ppalling鈥 actions. Two Cabinet stalwarts of Canada鈥檚 previous Conservative government, James Moore and Jason Kenney, tweeted support for the retaliatory tariffs. 鈥淲hen Canada is under attack, we unite. Country first,鈥 Moore tweeted, calling the U.S. measures 鈥渕ercantalist nonsense.鈥

Patience has worn thin. 鈥淲e鈥檝e all had just about enough of Donald Trump,鈥 Ontario Premier Kathleen Wynne, a Trudeau ally, told reporters before the retaliatory tariffs were announced.

鈥淭he reality is that our federal government has moved heaven and earth. They鈥檝e cajoled Trump, they have soothed his ego, they鈥檝e played to his apparently inexhaustible vanity,鈥 she said. 鈥淭he time for talk is done. Donald Trump is a bully, and the only way to deal with a bully is to stand up and push back and we have to do that.鈥

Trudeau now prepares to host Trump at the G-7 leaders summit in Charlevoix, Quebec, next week. Trudeau said Trump is scheduled to attend and that he expects 鈥渇rank and serious conversations amongst world leaders.鈥 In the meantime, the tariff war is on 鈥 with another potential tariff, on cars, remaining a possibility. It, too, would be implemented under grounds that Canada undermines U.S. national security.

鈥淭he notion that we鈥檙e a national security threat is just 鈥 I mean, pick your invective,鈥 said Joseph Galimberti, president of the Canadian Steel Producers Association. 鈥淨uestionable, in the least.鈥

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