THE MORNING RANT: By the Logic of Free Traders, Shouldn't Trump's Tariffs Be Good for Canada and its Consumers

There is something puzzling about the U.S. / Canadian trade war and the concern that Trump-hating “free traders”* have on how this will affect Canada. [*Actual free trade involves reciprocity, but those now identifying as “free traders” argue for unilateral surrender to foreign mercantilism, even when it involves hostile nations such as China.]

It is widely accepted that if President Trump doesn’t dial back his tariffs, Canadian industry will be devastated, its economy will be thrown into recession, and there will be widespread job losses and layoffs in Canada. I would agree that all sounds awful for Canadians, but over the past few decades, American “free traders” have argued in favor of inflicting on the U.S. the same economic despair that Trump is imposing on Canada. Free traders consider a dying industrial town in the Midwest to be a success story, while they sneer at the despair of their countrymen who have lost the dignity of employment. Closed American factories and a gross trade imbalance with hostile powers are celebrated by free traders.

Where are all the think pieces from Principled Free Traders arguing that it will benefit Canada to roll over and surrender in its trade war with the U.S., since that is the argument they make for U.S. capitulation to China?

David Harsanyi is representative of America’s “free trade” political class, arguing repeatedly that American economic sovereignty is bad, while dependence on hostile foreign countries is desirable. At least that is the clear message I receive. He has written for many legacy conservative publications, repeatedly arguing for economic surrender to China because it would help American consumers save money, while embracing China’s trade barriers on U.S. products. A few years ago Mr. Harsanyi wrote “Now, admittedly, I support nearly unlimited trade, no matter what other nations do.” He went on to say, “Let's hope trade doesn't get ‘fair’ for us any time soon.” Mr. Harsanyi even expresses his ideal of zero U.S. steel production, dismissing the argument that a domestic steel industry is necessary for national defense.

By these arguments, shouldn’t Canadians also hope that their trade war “doesn’t get fair any time soon”? Shouldn’t Canadians embrace tariffs that destroy their export market? Shouldn’t Canada seek the elimination of every possible job so as to lower consumer prices? And wouldn’t any retaliatory tariffs imposed by Canada be a “tax on Canadian consumers” that should be avoided at all cost?

How devastating are the tariffs going to be for our northern neighbor if an agreement is not reached? A piece in the Globe and Mail titled “What Trump’s new tariffs mean for Canada’s economy” identifies multiple economic catastrophes, including:

• A collapse in exports that would reverse Canada’s GDP growth.
• Elimination up to 20% of jobs in many industries, including apparel and electrical equipment
• Devastation of Canada’s liquor industry.
• Serious harm to agriculture, especially Canada’s dairy industry
• Devastation of British Columbia’s lumber industry

The same free traders who cheered for the shuttering of American industry are suddenly worried about Canada, and defending Canada’s need to impose retaliatory tariffs. Go figure. It’s almost as if the abiding principal of “principled free traders” is that they are anti-American globalists who embrace economic policies that harm America while benefiting other countries.

Canada’s Prime Minister, Mark Carney, just stated that tariffs are necessary to protect Canada, arguing that the cost of tariffs “don’t come close to the cost of standing still.”

Free traders swooned in concurrence with PM Carney. “The Editors” at National Review defended Canadian retaliatory tariffs, arguing that it was a necessary escalation by Canada because the U.S. tariffs are a “blow for Canadian exporters.”

This is the same National Review that repeatedly argues for giving China unfettered, tariff-free access to the American market, irrespective of China’s trade barriers against American exports. Why would NR make this argument? Because, tariffs are a tax on American consumers, of course. Strangely, that same logic doesn’t apply to Canadian consumers when Canada is tariffing American products due to a trade war.

It’s almost as if the underlying “principal” among the “free traders” isn’t actually free trade, rather it is a globalist, America-last attitude that seeks to harm the U.S. economically for the benefit of other countries.

[buck.throckmorton at protonmail dot com]

posted by Buck Throckmorton at 11:00 AM

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