A U.S. tariff imposed on Canadian-made goods is a tax that Americans must pay if they choose to buy Canadian-made goods. A tariff punishes the consumer for not buying goods produced in her own country. The goal of a U.S. tariff on Canadian goods is to get Americans to instead buy goods made in the U.S.A. 

President Donald Trumps imposition of tariffs on Canadian goods has sparked a debate on how Ontario should respond. 

Ford Fighting His Own Fire with Gasoline

Premier Doug Ford's knee-jerk response has been a promise to give tens of billions of dollars to Ontario businesses and individuals affected by the tariff, and he has promised to match U.S. tariffs "dollar for dollar". His promises demonstrate his profound lack of understanding of the nature of trade disputes; an ignorance that, if acted upon, risks exacerbating the situation. 

Protectionist measures like those now being proposed by Ford are one of the things that have provoked Donald Trump to impose tariffs. For years, the Ford government has been funneling billions of taxpayer dollars to businesses in Ontario. Those government subsidies have given Ontario companies an unfair advantage over U.S. competitors: the subsidies allow U.S. consumers to buy Canadian imports for less than they would have to pay for U.S.-made goods. Increasing these subsidies by tens of billions of dollars - as Doug Ford is threatening to do - would only validate Trump's accusations of unfair trade, potentially leading to harsher tariffs on Canadian goods purchased by Americans.

Ford Hungry for Pandemic Powers Again

Ford has compared the imposition of U.S. tariffis to another "pandemic". This is alarming because, during the pandemic, his top-down seizure of economic control led to the closure of businesses, to personal hardships and bankruptcies, and to strained public finances. The last thing Ontarians need is another period where government restricts their behaviours and choices, and threatens their livelihoods and financial stability. 

Ford Is All Talk on Tariffs

Ford's assertion of matching U.S. tariffs "dollar-for-dollar" is not only legally impossible but also strategically naive. Provincial governments have no constitutional authority to impose tariffs. Only the federal governmnent has jurisdiction to impose a tariff on goods imported from the USA. Ford's public threats to impose tariffs "dollar for dollar" expose a fundamental lack of understanding of his government's role. Through ignorance or dishonesty, Doug Ford is misleading voters and potentially weakening Ontario's position in federal negotiations. His tariff threats serve no purpose other than to escalate tensions without real leverage, signaling to Donald Trump that Ontario is unprepared for nuanced diplomatic engagement. 

Ford's Macho-man Act

Doug Ford recently told reporters "Imagine [Liberal leader] Bonnie Crombie or [NDP leader] Marit Stiles sitting across from President Trump negotiating a deal. It would be an absolute disaster," he said. "And God help us if that ever happens." Ford's comments about negotiating with Trump, particularly his misogynistic implications regarding Crombie and Stiles, miss the mark entirely. The plain reality is that permiers do not sit across from presidents and negotiate trade deals. Doug Ford knows that, but he thinks that Ontario voters do not. If the unlikely happens and Donald Trump happens to notice Ford's somewhat farcicle tough-guy bloviations, the rhetoric and posturing can only backfire. In response, Donald Trump most probably will choose to make an international example out of Ford and Ontario. Ford's bluster is endangering Ontario's economic interests. 

A Positive and Constructive Path to Resolution

A Freedom government will take a different, more constructive approach to this challenge:

• Before taking any action, we will pinpoint exactly what in our current trade practices - what specific protectionist measures - bothers the U.S. to the extent that Donald Trump is willing to impose tariffs. An effective response can be developed after, and only after, we know what Ontario policies are motivating Donald Trump to impose a tariff.


• Ontario's government must be prepared to acknowledge that it has in place protectionist measures that give some Ontario businesses an edge over U.S. competitors. This honesty could open doors to negotiations where both sides benefit, rather than continuing a cycle of retaliation.


• Instead of increasing protectionist measures in Ontario, we will engage in open, informative communication with U.S. counterparts. The goal should be free trade, not trade wars. We must work toward a resolution that reduces each side's contribution to unfair, anti-competitive practices, and reduces the likelihood of any future threatened tariffs.

Conclusion

A Freedom government will be committed to an optimistic, wise, and realistic approach to this tariff threat. Our strategy is not about escalating conflicts but about de-escalating them through smart diplomacy, transparency, and a commitment to free trade principles. We will aim to protect Ontario's economic interests by building bridges, not walls, ensuring that our province thrives in a world where fair competition and free trade trumps confrontation.