The prospect of tariffs is ruffling feathers.
It started with President Donald Trump making “jokes” about Canada becoming the 51st U.S. state. Then he imposed a 25% tariff on imports from the country, which has since been postponed by one month. But the good-natured Canadians are not taking this lying down—they are canceling their vacations to the U.S. after weeks of tension played out globally between the two allies.
“Now is the time to choose Canada,” said Prime Minister Trudeau, who resigned in January, said in a heartfelt speech to his citizens. “It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites, and tourist destinations our great country has to offer.”
Canadians jumped into action, showing their displeasure with their neighbors. Normally polite Canadians booed American teams at sporting events. On social media, there are calls to check labels in supermarkets, and American alcohol is being dropped from shelves in some cities. People are also boycotting other American brands, including Starbucks, Amazon, and Netflix.
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Travel companies are also reporting a hit in reservations—Canadians are canceling trips. Travelers are anxious about the unpredictability and the new anti-LGBTQ+ executive action. Last year, 20.4 million Canadians crossed the border to visit the U.S., spending $20.5 billion. Even a 10% decrease in numbers could wound U.S. tourism businesses.
Americans are also feeling hesitant about trips to Canada after tensions have escalated. Citizens of both nations are worried about whether they will face unfriendliness on the other side of the border.
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‘Dumbest Tariff War’
President Trump has promised to impose tariffs on its neighbors, Canada and Mexico, as well as China. He said, “We don’t need what they have.” After taking office, the president announced a 25% import duty on products from its two neighbors, which has since been postponed for a month after talks with Mexican President Claudia Sheinbaum and Prime Minister Trudeau. China is facing a 10% tariff.
The Washington Post has called it the “dumbest trade war in history.” The U.S. is targeting one of its strongest allies, Canada, and the move has the potential to destabilize both economies. According to economists, tariffs aren’t always the most efficient way of boosting an economy. Canada and Mexico could go into recession if President Trump’s plan takes shape, and both countries are likely to retaliate against the U.S. The cost of tariffs will ultimately fall on consumers if prices rise, and in the long run, American consumers will have to pay more for lumber, gas, cars, and other everyday products.
Experts are baffled by the decision to target American allies, and Canadians are hurt by the perceived betrayal. President Trump has pointed to the trade deficit between the U.S. and Canada as one of the reasons, but fentanyl smuggling and illegal immigration are also being brought up. For now, both Mexico and Canada have pledged more resources to curb immigration and stop fentanyl trafficking.
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