Canada and Trump’s Tariffs: a D@W perspective
By Professor Ellen D. Russell
Trump’s tariffs do Canadians the favour of shattering our illusions that being a good neighbour protects us from the capricious wrath of Trump. Even if Canada is on its best behaviour and plays by the rules, Trump will not hesitate to sacrifice Canada for whatever flaky stratagems capture his momentary fancy. This latest Trump tariff outburst is provoking a national conversation about how Canadians can manage living next door to a hegemon that is increasingly unstable and cruel. A vast country with a small population, crowded along the US border, faces real challenges if we can no longer rely on our largest trading partner.
Yet the typical solutions are both implausible and fragile. It is unlikely that we can offer US companies enough tax breaks, regulatory leniency, and outright supplication (sorry, “corporate-friendly environments”) to keep production in Canada in the face of Trump’s agenda. And Canada’s domestic capitalists—such as they are—offer no plausible solution. Without secure access to US markets, they rapidly forget their passionate Canadian affiliation (unless it is a prerequisite for their own tax and regulatory breaks, in which case the pretense is briefly maintained). Diversifying our trading partners might soften the blow, or perhaps Trump will move on to bully others, but do Canadians really want to bet everything on this?
Trump’s actions are creating an opportunity for Canadians to consider more systemic solutions. If we want enterprises that are truly committed to hiring local workers to serve local markets, is the traditional capitalist firm really the best vehicle to achieve this? When the going gets tough, these firms lack the incentives to stand by Canadians.
Other types of firms, however, do have the incentives to behave differently. When workers create enterprises based on democratic principles, they tend to be committed to their communities and workforce in ways that a capitalist firm never is. A branch plant of some US company, or a Canadian company looking to be briefly successful until it is lucratively bought out by its American counterparts, can never offer this kind of commitment.
Canadians are clamouring for options to purchase from firms that exemplify these values. In all likelihood, the Canadian government is considering various enticements to encourage Canadian firms to produce for the domestic market in ways that insulate Canada from the Trump rollercoaster. Why can’t some of these resources be allocated to support democratic local workplaces run by workers who are committed to their communities and regions?
Canadians are tired of capitalist firms sucking up public money with no long-term commitment to serving Canadians, especially when times get tough. The public appetite exists to try something different, and democratic local workplaces are a compelling alternative to the endless bribery of capitalists—a strategy that does nothing to achieve the goals we care about. If becoming the 51st state is not what Canadians want, now is the time to think outside the box.
Ellen D. Russell is an Associate Professor, Digital Media and Journalism, Social and Environmental Justice, and Social Justice and Community Engagement