The Decibel

Trade war on hold as Trump threats loom

5 snips
Feb 4, 2025
Nathan VanderKlippe, an international correspondent for The Globe and Mail, provides expert insights on the recent trade tensions between Canada and the U.S. He discusses the last-minute phone call that prompted a 30-day tariff pause and the significance of Canada's border security measures. VanderKlippe also explores how Trump's tariff threats might reshape diplomacy and the potential pitfalls for future U.S.-Canada relations. The conversation delves into the complexities of negotiating trade in light of ongoing political dynamics and public health crises.
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ANECDOTE

Past Trudeau-Trump Conflicts

  • Trump and Trudeau’s relationship soured during past trade negotiations, including NAFTA renegotiations and the 2018 G7 meeting.
  • After the G7 meeting, Trump called Trudeau “dishonest and weak” on Twitter after Trudeau publicly stated Canada would not be pushed around.
INSIGHT

Trump's 51st State Idea

  • Trump’s “51st state” comments may signal a desire to control Canadian resources, but this is not confirmed.
  • While Trump has expressed this desire, there is no evidence yet of concrete actions by his administration to pursue this goal.
INSIGHT

Effectiveness of Tariff Threats

  • Trump’s tariff strategy seems effective, as threats have led to concessions, even if minor.
  • It's unclear whether the key lesson is that tariff threats work or that they are easy to circumvent.
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