Showing posts with label Canada-US Trade War. Show all posts
Showing posts with label Canada-US Trade War. Show all posts

2026-08-06

Bait and switch – Canadians voted for a Liberal “elbows up” PM in 2025 but got a conservative appeaser instead

Climate change policy rollback, deference to the US, tough on crime legislation, reduced social spending, are all hallmarks of a right wing Conservative government. 

A version of this article can be found on Substack.

In the 2025 federal election campaign, Canadians were told they were choosing stability. They were told that Mark Carney, the newly minted Liberal leader, would be the steady, progressive hand needed to navigate Donald Trump’s tariff war. They were told that the Liberals remained the sensible alternative to Pierre Poilievre’s Conservatives. They believed Liberal campaign messaging and gave Mark Carney a very strong minority mandate, which he turned into a majority with Conservative floor crossings and by-election wins.

Almost fifteen months later, Canadians must accept a stark and unsettling reality.  The man they elected to lead Canada is not governing as a Liberal at all. Instead, he is steering the country in a distinctly conservative direction—at times even more aggressively than former Conservative prime minister Stephen Harper. The bait and switch could not be clearer, and the evidence is everywhere.

Carney’s most dramatic right‑turn came with the cancellation of the consumer carbon tax—a key Liberal climate change policy. In March 2025, his government announced that the federal fuel charge would be set to zero as of April 1, 2025, and legislation would follow to permanently repeal the consumer carbon‑pricing framework. The Bank of Canada confirmed that the removal of the carbon tax would lower consumer prices and reduce inflation for a year—an admission that the move was more about inflation optics, rather than meaningful climate policy.

This was not a minor recalibration. It was the dismantling of the central pillar of Canada’s climate architecture, a policy the Liberals had defended all the way to the Supreme Court under the government of Justin Trudeau. In addition to removing the consumer carbon tax, industrial carbon pricing was weakened and stretched out, further reducing Canada’s already modest climate ambition. Progressive nations—Norway, Finland, Denmark—are accelerating climate action. Under Carney, Canada is accelerating emissions.

The same pattern of retreat appears in Carney’s handling of Donald Trump. In trade negotiations, where Canada has given concession after concession, receiving little in return.

The Digital Services Tax (DST), a 3% levy on tech giants like Amazon, Meta, and Google, was rescinded in June 2025 specifically “to advance broader trade negotiations with the United States.” Analysts noted that the repeal came under intense US pressure, effectively subordinating Canadian tax sovereignty to American demands.

Then came the rollback of streaming levies. In 2026, Carney intervened to reverse a CRTC decision requiring foreign streaming platforms to devote 15% of Canadian revenues to Canadian and Indigenous content. His government ordered the regulator to retreat, framing the reversal as an affordability measure while signalling a new direction that sharply reduced obligations for US streaming giants.

Next, Carney eliminated almost all retaliatory counter‑tariffs on US goods, while US tariffs on Canadian exports remained firmly in place. This unilateral de‑escalation relieved pressure on American exporters without securing reciprocal relief for Canadians.  Additionally, instead of forcing a resolution on steel and aluminum tariffs, Carney’s government settled into a defensive posture, extending tariff‑rate quotas (TRQs) until the end of June 2027,and normalizing a regime shaped by US Section 232 tariffs of 50%.

The pattern is unmistakable.Trump threatens, Carney retreats and concedes. The “steady hand” has looked more like chronic concession.

Domestically, Carney has pushed the Liberals even further right. His criminal justice agenda looks like it was crafted by Pierre Poilievre’s Conservatives, who have made “tough on crime” a major plank in their election platforms for several elections. The Bail and Sentencing Reform Act (Bill C‑14) introduced over 80 changes to federal law, explicitly making bail stricter and sentencing tougher, in line with Conservative demands. The government proudly declared that “Canada’s new government promised stricter bail laws and tougher sentencing laws. That promise is now law.”

Reverse‑onus provisions, mandatory consecutive sentences, expanded aggravating factors—these are not progressive reforms. They are punitive escalations that mirror Harper‑era ideology. A progressive government would have focused on restorative justice and decarceration, but Carney chose the opposite.

On social policy, the Carney’s rightward drift continued. While the Canadian Dental Care Plan is expanding, with projected benefits funding rising to $3.4 billion in 2026‑27, pharmacare is being quietly starved. The Spring 2026 Economic Update announced bilateral health funding falling from $4.3 billion in 2025‑26 to $3.1 billion in 2027‑28, with no new money for additional pharmacare agreements. Analysts warn that Ottawa appears poised to let existing agreements expire without renewal—effectively halting national pharmacare.

This is textbook austerity where a popular flagship program is preserved while other deeper structural reforms are allowed to wither.

Carney’s rhetoric about “tough decisions” only reinforces the shift. Combined with the removal of the consumer carbon tax—which disproportionately benefits higher‑income households that consume more fossil fuels—the government’s affordability agenda skews toward those already better off.  Under his policies inequality is magnified, not reduced.

Internationally, Canada’s standing is slipping. The 2026 World Happiness Report places Canada 25th, down from 18th the previous year and far below its ranking a decade ago.  When countries like Kosovo, Mexico and Costa Rica (which ranked 4th) rank higher that is a signal that something very wrong. Nordic countries dominate the top of the index, reflecting strong social support, equality, and robust welfare states. Canada’s slide was not inevitable. It is the result of political choices that erode social protections and weaken progressive policy.

On corruption, democracy, and rule‑of‑law indices, Canada now sits in the middle of the advanced‑democracy pack rather than at its leading edge. Carney’s willingness to weaken climate policy, stall pharmacare, and harden criminal justice only accelerates the drift away from the Nordic model Canada once aspired to.

When Carney’s record is placed beside Stephen Harper’s, the similarities are striking. Climate rollback. Deference to Washington. Tough‑on‑crime legislation. Selective social spending. This is not a centrist Liberal government nudged slightly right by circumstance. It is a right‑of‑centre government wearing a red Liberal coat.

Under Carney the Liberal brand has become political misrepresentation—fine‑wine packaging around vinegar‑grade policy. Canadians voted for a progressive alternative to Poilievre. Instead, they got Harperism in red.

For Canadians who still believe in robust climate action, universal pharmacare, civil liberties, and a foreign policy grounded in human rights, the conclusion is unavoidable: the Liberals under Mark Carney are no longer a progressive vehicle. The only national party articulating a coherent left‑of‑centre program is the NDP under Avi Lewis, whose platform aligns far more closely with the Nordic benchmarks of social democracy than anything coming out of Carney’s PMO.

If Canadians truly wanted a Conservative government, they could have voted for Pierre Poilievre. Instead, they voted Liberal—and got a Conservative prime minister. That is the essence of the bait and switch. And unless progressive voters break with the Carney Liberals, Canada’s slide away from justice‑oriented, egalitarian politics will only deepen.

© 2026 The View From Here. © 2026 Fareed Khan. All Rights Reserved.

2026-07-13

Carney showed Canadians his weakness by paying “ransom” to Trump over Gordie Howe Bridge opening

If the US can extract concessions on a bridge it did not pay for, what will stop it from doing the same on pipelines, rail corridors, or energy grids?

By Fareed Khan
A version of this article can be found on Substack

Mark Carney’s government has now provided the clearest evidence yet that Canada’s “elbows‑up” strategy, which he promoted after becoming prime minister, is over. The prime minister who promised Canadians that their country would no longer be pushed around or intimidated by the United States under Donald Trump has instead delivered a humiliating concession over the opening of the Gordie Howe International Bridge—an infrastructure project that Canada fully funded, managed, and built. And yet, when the moment of truth arrived, Carney folded.

To understand the scale of this capitulation, Canadians need to revisit the history of the bridge itself. The Gordie Howe International Bridge was conceived as a long‑overdue modernization of the Windsor–Detroit crossing, a corridor responsible for on average US$360 million in daily trade between Canada and the US. The existing 96-year-old  Ambassador Bridge—owned by the Moroun family, a private US business dynasty—had long been a chokepoint, a monopoly crossing plagued by aging infrastructure and political interference.

In 2012, after years of obstruction from the Ambassador Bridge owners, Canada and the Obama administration signed a binational agreement, that began construction of a new bridge between Windsor and Detroit.  Under the arrangement Canada would pay the full cost of the new bridge—$6.4 billion—and in return Canada would collect 100% of toll revenues until its investment was recouped. Only after Canada recovered its costs would profits be split 50/50. It was a fair deal, a rational deal, and a deal that was supposed to protect Canadian taxpayers.

Then Donald Trump entered the picture.

According to multiple investigative reports, the owners of the Ambassador Bridge donated $1.5 million to a Trump‑aligned MAGA PAC shortly before the Trump administration began obstructing the bridge’s opening with claims of a bad deal for the US. The timing was not subtle and the intent was not hidden. The Ambassador Bridge owners wanted to delay or derail the Gordie Howe Bridge, and they were willing to pay whatever it took to do it.

Being the corrupt, transactional thug that he is Trump delivered.

The Trump administration signaled that the bridge would not open unless Canada renegotiated the financial terms of the original deal. In other words: the United States demanded a ransom, and Mark Carney paid it.

The new arrangement—forced on Canada under threat of indefinite delay—hands the United States benefits it never earned and concessions it never paid for. The US contributed nothing to the bridge’s construction. Yet Carney agreed to a deal that gives Americans a share of profits, a veto over toll increases of more than 10%, and access to a US‑only economic development fund financed by toll revenue.

The specifics of the “ransom” Canada paid include:

  • 15‑Year Profit Sharing: Canada still collects toll revenue, but 50% of net profits for the first 15 years will be diverted to a US regional development fund—money to which Canadians will not have access;
  • US Toll Governance: Canada must obtain US consent to raise tolls more than 10% or lower them below regional averages. In other words, Canada no longer controls the pricing of the bridge it paid for.
  • US‑Only Reinvestment: The diverted profits will be spent exclusively on American infrastructure and economic projects. In other words, Canadians will fund it but only Americans will spend it.

This is not partnership, or diplomacy, or respect between two sovereign nations.  It is extortion and blatant gangsterism.  And Carney’s response to Trump’s thuggery was not “elbows up.” It was “hands up.”

The prime minister who once declared that Canada would no longer be intimidated has now demonstrated the opposite. Canada can be taken into a back room by a gangster‑style US president and beaten until it agrees to whatever Washington demands. Trump threatened to block the opening of a bridge Canada built, and Carney surrendered.

This is not an isolated incident. It is part of a pattern we have seen since Trump returned to office, one where Trump threatens and Canada capitulates.

Carney has repeatedly shown weakness in the face of US pressure. His government’s digital services legislation—originally intended to ensure fair taxation of tech giants like Amazon, Google and Meta operating in Canada—was rescinded on June 30, 2025 in order to restart trade talks with the US. The result was that Canada gained little given that trade talks are still effectively halted.  It conceded much to the detriment of Canadians, and once again demonstrated that US threats and intimidation can bend Ottawa’s spine.

The Gordie Howe Bridge fiasco is not an isolated embarrassment—it is the clearest, most visible symptom of a deeper structural failure. Carney’s decisions have not fortified Canada’s sovereignty in its relationship with the United States; they have steadily eroded it. No matter how loudly the Carney government advertises its other international “wins,” the reality is unavoidable: Canada is emerging from these confrontations with the Trump administration weaker, more vulnerable, and more dependent on the goodwill of its single largest trading partner.

Consider the symbolism. The bridge was meant to be a triumph of Canadian initiative, a strategic investment in national economic security. Instead, it has become a monument to American coercion and Canadian capitulation. The country that paid for the bridge now needs permission to operate it from the country that paid nothing.

Carney’s defenders will argue that the deal was necessary to avoid further delays. They will say that opening the bridge is vital for trade, for jobs, for the economy. And they are right about the importance of the bridge. But they are wrong about the price paid.

Canada could have stood firm. Canada could have insisted that the original agreement be honoured, and even sued in US and Canadian courts. Canada could have refused to renegotiate under duress. Instead, Carney rewarded extortion with concessions.

The consequences will echo far beyond Windsor and Detroit.

First, Canada has signaled to the United States that bullying and extortion works. If Trump—or any future US administration—wants something from Canada, they now know the formula: threaten economic disruption, apply political pressure, and wait for Ottawa to fold.

Second, Canada has undermined its own credibility. A country that cannot defend a $6.4‑billion investment it fully funded cannot credibly claim to be a sovereign equal in North American negotiations.

Third, Canada has set a dangerous precedent for future infrastructure projects. If the US can extract concessions on a bridge it did not pay for, what will stop it from doing the same on pipelines, rail corridors, or energy grids?

Carney’s failure of resolve isn’t merely a political misstep. It is a direct threat to Canada’s national security posture.

This nation’s prosperity depends on cross‑border infrastructure. If that infrastructure becomes a bargaining chip for US political actors, Canada’s economic future becomes hostage to American domestic politics. And if Canada’s prime minister cannot stand up to a US president who openly uses extortion as a negotiating tactic, then Canada is not negotiating—it is submitting.

The Gordie Howe Bridge should have been a symbol of Canadian strength. Instead, it has become a symbol of Canadian vulnerability.

Carney promised Canadians that he would lead with strength. He promised that Canada would no longer be pushed around. He promised an “elbows‑up” foreign policy.  But when Donald Trump came knocking, Carney didn’t put his elbows up. He raised his hands in submission. And  for that Canada has paid the price, and will continue to for decades.

© 2026 The View From Here. © 2026 Fareed Khan. All Rights Reserved.


2025-08-23

Carney should know that appeasement never works when dealing with a bully like Trump

Bullies like Trump exploit perceived weakness because their goal is not mutual benefit but dominance . . . History offers stark warnings about the dangers of appeasing coercive actors. 
 
Yesterday the Canadian government announced it would remove retaliatory tariffs on US goods compliant with the Canada-United States-Mexico Agreement (CUSMA), a move framed as an effort to reset stalled trade negotiations with the United States. Prime Minister Mark Carney described this as a strategic shift, likening it to a hockey game where Canada moves from “elbows up” to deft stick handling. Yet, this decision reeks of appeasement—a concession to Donald Trump, a president who has relentlessly bullied Canada with escalating tariffs and provocative rhetoric about annexing it as the 51st state. 


History and psychological studies warn us that appeasing bullies rarely ends well, and Canada’s current path risks repeating the mistakes of those who have caved to coercion before. By softening its stance, Canada is not outmanoeuvring a bully, it is inviting further aggression from a leader with a well-documented history of breaking promises and exploiting perceived weakness.

The psychology of bullies: Why appeasement fails

Psychological studies on bullying provide a clear framework for understanding Trump’s tactics and why appeasement is doomed to fail. Bullies thrive on power imbalances, using intimidation to assert dominance and extract concessions. According to the American Psychological Association bullies target those who display submissive behaviours, interpreting acquiescence as an invitation for further aggression. Appeasement, far from de-escalating conflict, signals to the bully that their tactics are effective, encouraging escalation.

This dynamic is evident in Trump’s trade war. After Canada imposed retaliatory tariffs on US goods in response to Trump’s 25% tariffs on Canadian exports (and 10% on energy), Trump raised the stakes, increasing tariffs to 35% on non-CUSMA-compliant goods and 50% on steel, aluminum, and copper. Canada’s decision to lift tariffs on CUSMA-compliant goods, while maintaining levies on key sectors like steel and autos, appears conciliatory—a move that risks emboldening Trump to push for more concessions.

Bullies like Trump exploit perceived weakness because their goal is not mutual benefit but dominance. A 2020 study in Personality and Individual Differences noted that individuals with narcissistic traits—such as grandiosity and a need for admiration—often engage in bullying to maintain control and suppress challenges to their authority. Trump’s public persona, marked by boastful rhetoric and personal attacks, aligns with this profile. His repeated references to Canada as a potential 51st state and his dismissal of former Prime Minister Justin Trudeau as a mere “governor” reflect a desire to humiliate and subordinate, not negotiate as equals. Canada’s tariff rollback, intended to foster dialogue, may instead signal to Trump that Canada is willing to bend under pressure, inviting further demands.

Historical lessons: The perils of appeasement

History offers stark warnings about the dangers of appeasing coercive actors. The most infamous example is the 1938 Munich Agreement, where Britain and France allowed Nazi Germany to annex the Sudetenland in Czechoslovakia in hopes of securing “peace in our time.” This concession, driven by the desire to avoid conflict, emboldened Adolf Hitler, who interpreted it as a sign of weakness. Within a year, Germany occupied the rest of Czechoslovakia and invaded Poland, triggering World War II. The lesson is clear: appeasing a bully who seeks dominance does not lead to peace but to escalation.

2025-08-02

To Americans from Canadians: The bully you elected as president started a fight we’re going to finish

Canada will not be your 51st state. We will not be bullied, and we will not back down . . . we are prepared to endure any economic pain to protect who we are. 
 
 
A letter to America:
 
For the better part of a century, Canada has been your steadfast ally, your unwavering partner, and your friend through the trials of history. We have stood shoulder to shoulder in wars and times of crisis, opened our homes to Americans in moments of need, and built an economic relationship that has enriched both our nations. But today, under the leadership of Donald Trump, that relationship has been betrayed (again).
 

Your leader has chosen the path of a bully, wielding tariffs as weapons and threatening annexation masked as a jest that hides dangerous intent. America's actions—most recently the escalation of tariffs on Canadian goods to 35% on August 1, 2025—have made it clear that you see Canada not as a partner, but as a target to be subdued. Let us be unequivocalCanada will not bend, we will not break, and we will not be bullied.  Canadians are prepared to endure whatever pain is necessary to protect our sovereignty and to ensure that your economic aggression costs you dearly.

The history of Donald Trump is one of betrayal, a pattern as old as the parable of the scorpion and the turtle. In that tale, the scorpion promises not to sting the turtle that carries it across the river, only to betray that trust because it is in its nature. Your president has shown his nature time and again in the business world and during his first presidential term—through broken promises and broken contracts with business associates, political allies, and now entire nations. Since November 2024, his repeated calls to make Canada the “51st state” have not been taken as mere rhetoric in Canada but as a direct threat to Canada’s sovereignty. His tariffs, which began at 25% and now stand at 35% on many Canadian goods, are not just economic policy, they are an attempt to bring Canada to its knees. But your president underestimates Canadian resilience. Canada is not a nation of weakness, we are a nation of tough, innovative, and resolute people who will fight back with every tool at our disposal.

The relationship between Canada and the United States stretches back well over a century, forged through shared challenges and mutual respect. In World War One, Canada sent over 600,000 troops to fight for freedom while the US remained neutral until 1917. In World War Two, we joined the Allies in 1939 at the start of the conflict, two years before America entered the fray. When the tragedy of 9/11 struck, Canada opened its skies and homes, welcoming over 33,000 US bound passengers onto its soil, with almost 7,000 hosted by families in the town of Gander, Newfoundland (a community of approximately 10,000).  Canada hosted our guests with kindness and patience until the passengers could return home. We stood by you in Afghanistan, sacrificing 158 Canadian lives in a shared mission. Yet, when you pursued the Iraq War on false pretenses, we held firm to our principles, refusing to join a conflict built on deception.

This is the Canada your president now threatens—a nation that has proven its loyalty, its courage, and its moral compass. In contrast, your government has chosen chaos over cooperation, taking a wrecking ball to the post-World War Two order that both our nations helped build. The US-Canada trade relationship, the largest in the world, with over $2.7 billion in trade across our border daily, is a cornerstone of prosperity for both nations. Three-quarters of Canada’s exports go to the US, and Canada is the top destination for exports from 34 US states, with Canadians purchasing $349 billion in American goods last year. Yet, your president has chosen to disrupt this mutually beneficial partnership with tariffs that economists warn will harm both our economies.

Trump’s tariffs are not just an attack on Canada, they are a self-inflicted wound on the American economy. Stephen Tapp, Chief Economist at the Canadian Chamber of Commerce, has stated that these tariffs will “raise costs for businesses, make American production less competitive internationally, and raise prices even more for US consumers, who have recently suffered through the highest inflation in generations”. The Tax Foundation estimates that US tariffs will amount to an average tax increase of $1,219 per US household in 2025, with market income dropping by 1.3% in 2026. The Yale Budget Lab projects that Canada’s economy could shrink by 2.1% in the long term, but the US will also suffer long-term damage as supply chains falter and prices rise.

Canadians are not standing idly by. In response to Trump’s aggression against Canada, 71% of us have pledged to buy fewer American products, a boycott that is already hitting US exporters hard. In 2024, Canada was America’s  second-largest food export market, valued at $28.4 billion. That market is shrinking as Canadian supermarkets label domestic products and consumers willingly pay 50% more for fruit and vegetables from Mexico, Latin America and other nations rather than buy produce from the US. Liquor stores in the provinces of Quebec, British Columbia, and Ontario have pulled American wines and spirits from their shelves, replacing them with Canadian alternatives. Tourism, a $20.5 billion contributor to your economy from Canadian visitors, accounting for 140,000 jobs, has plummeted, with a six-month decline in cross-border travel costing the US an estimated $12.5 billion in 2025 alone. These actions are not mere gestures, they are a calculated response to your president’s economic bullying, and they are working.

Furthermore, your president’s threats of annexation have only strengthened the resolve of Canadians. Former Prime Minister Justin Trudeau captured the national sentiment when he declared, “We didn’t ask for this, but we will not back down.” Polls have shown a surge in Canadian pride, with 44% of Canadians expressing they are “very proud” of their country, up 10 points since December 2024. The idea of joining the US as a state has been rejected by 90% of Canadians. From small business owners to everyday consumers, people across the country are uniting to protect the Canadian economy and our sovereignty. Across Canada grocery stores now feature products made in Canada, and shoppers choose Canadian products even when it’s less convenient, calling your tariffs an “economic attack”. But this is not just about economics; it is about identity.

Canada is the nation that gave the world insulin, the electron microscope, IMAX, the smartphone, the pacemaker, and yes, even peanut butter. We are the birthplace of hockey and basketball, and the home of cultural icons like Drake, Shania Twain, and Gordon Lightfoot. We are a nation of innovators, creators, and peacemakers, and we will not allow our legacy to be erased by your bully president who sees Canada as a prize to be claimed.

However, we know that standing up to your president’s deranged tariff policy will come with costs. Economists predict that the Trump tariffs could lead to a million job losses in Canada and push our economy into recession. But we are prepared to endure this pain to protect our sovereignty and to send a message that US bullying will not go unanswered. Our government has already imposed retaliatory tariffs on $20.8 billion of US goods, and Canada is exploring further measures, such as export taxes on resources like oil, gas, electricity and critical minerals which the US relies on for its industrial and defence sectors. As Prime Minister Mark Carney has said, “We’re their number one customer. I’m not too sure if they fully understand the impact on both sides of the border.”

Your own economists are sounding the alarm, warning that the boycott and retaliatory tariffs will cause a “drop in US exports,” particularly in food and alcohol. A “stagflationary shock” is also predicted in the US, with growth reduced by 1.5% and rising consumer prices. Even General Motors has reported a $1.1 billion loss in quarterly earnings due to the Trump tariffs on Canadian auto parts.

These are not abstract numbers; they are the real-world consequences of your president’s reckless policies, felt by American businesses and consumers alike. He seems to have mistaken Canada’s politeness for weakness, but we are a nation forged in resilience. We have faced external threats before and emerged stronger, and we will do so again. Our boycott is not temporary. It is a commitment to reshape our economy, reduce our reliance on US trade, and strengthen ties with Europe, Asia, and beyond. We are taking action to boost our domestic economy by an estimated $200 billion annually and undertaking nation building projects in support of that objective. We are united and we will not relent until the Trump administration ceases its attacks on our economy and our sovereignty.

This is our declaration of independence from the US as our main trading partner. Canada will not be your 51st state. We will not be bullied, and we will not back down. If Trump persists in this insanity, the economic pain will be felt on both sides of the border, but we are prepared to endure it to protect who we are. The scorpion may sting because it is in its nature, but Canada will not drown from the scorpion you have installed as your president. We will rise, stronger and prouder than ever, and you will learn that a true friend, when betrayed, becomes an unyielding force.

Sincerely,

Patriots Across Canada

 
© 2025 The View From Here. © 2025 Fareed Khan. All Rights Reserved.