What to Do When Faced with Tariffs? Diversify


The New York Times yesterday (11 March 2025) headlined: “Trump Intensifies Statehood Threats in Attack on Canada.” What particularly stood out was the sub headline: “The U.S. president on Tuesday reiterated his claims on Canada’s territory as he increased tariffs, threatening to bring the country’s economy to its knees.”

How are Canadians supposed to feel about being threatened? How are Canadians to feel about the indignity of being brought economically to their knees? It calls to mind the invocation of Mexican revolutionary Emilio Zapatista who stated: “It is better to die on your feet than to live on your knees!”

The article opens:

The fresh attacks President Donald Trump aimed at Canada on Tuesday extended beyond imposing more tariffs on America’s neighbor and NATO ally, and laid out in the clearest terms yet his vision for annexing Canada and making it part of the United States.

Trump is a selfish, narcissistic, vain person (e.g., here and here), and that plays well to a certain audience. It is obvious from his pandering to the public, his name calling of others (e.g., referring to Canada’s prime minister Justin Trudeau as a governor of the 51st state), his preening with bold sharpie-signed documents held up for cameras, his declarations affecting others without first speaking to the others.

It is about Trump’s vision for Canada. It’s an all stick and no carrot approach. That is what annexation is: “possession taken of a piece of land or a country, usually by force or without permission: The country’s annexation of its neighbor caused an outcry.”

Past and present Canadian governments (and the Canadians who elect so-called representatives to the parliament) are responsible for Canada’s exports being so reliant on the US market rather than diversifying its trade into other world markets.

It doesn’t have to stay that way. In fact, it is a rude wake-up call that Canada must not rely on the US to be a faithful and steadfast partner. Canada’s dignity and sovereignty1Canada’s dignity and sovereignty will always be morally challenged given that it exists on the dispossession of its Indigenous peoples — a lamentable criminality that Canada shares with the US. demand a change in the status quo.

Unlike China, Canada is unprepared for round two of a Trump administration.

The US economy is forecast by many commentators to be heading for a recession, something that Trump does not deny. China, on the other hand, has set its 2025 GDP growth target at around 5%. It seems futile to tie one’s ship-of-state to another sinking ship.

Canada says it will fight fire with fire, that it will reciprocate the US tariffs. This is a lose-lose proposition. Canada needs to get off its knees and seek a win-win, respectful relationship — something that China always promotes. No need to completely disengage with the US, but apply to BRICS and the BRI and develop relations with the Global South. Pursue a path that is best for Canadians.

ENDNOTE:

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    Canada’s dignity and sovereignty will always be morally challenged given that it exists on the dispossession of its Indigenous peoples — a lamentable criminality that Canada shares with the US.
Kim Petersen is an independent writer. He can be emailed at: kimohp at gmail.com. Read other articles by Kim.