{"id":6022,"date":"2026-09-10T10:22:35","date_gmt":"2026-09-10T10:22:35","guid":{"rendered":"https:\/\/interstatelogisticshubs.com\/?p=6022"},"modified":"2026-09-10T10:22:35","modified_gmt":"2026-09-10T10:22:35","slug":"a-manufactured-trade-war-with-canada","status":"publish","type":"post","link":"https:\/\/interstatelogisticshubs.com\/?p=6022","title":{"rendered":"A Manufactured Trade War with Canada"},"content":{"rendered":"
\n

As we enter general election season, we have disruptions in the news and in the economy: a nagging USA-Canada trade war that seems to accelerate at the worst possible times.<\/p>

Read more The Right AI Rule Is Least Privilege, Not A Moratorium<\/a><\/p>\n

In August, the Canadians walked away from a trade agreement to which their negotiators had already agreed, when Prime Minister Mark Carney recalled them specifically to create a fight.<\/p>\n

The USA therefore imposed a series of new\/increased tariffs on Canadian goods, and Canada then responded by imposing their own new\/increased tariffs on American goods (both of which would theoretically cover approximately $20 billion\/year in goods).<\/p>\n

In judging the impact of such an economic hit, it’s important to note the differences between our respective economies, as well as the differences in how much activity we have with each other.<\/p>\n

USA firms import about $400 billion per year in goods from Canada, so the products affected by the new USA tariffs are only about 5% of that. By contrast, Canadian firms import about $260 billion per year from the USA, so the tariffs they’ve just imposed affect a larger percentage of their imports, about 7 to 8 percent of them.<\/p>\n

That might not feel like a big deal, but we need to remember that tariffs are used as attacks on the exporting country, but the people who really “feel the pain” are the importers who pay the tariffs in the end. So, this reciprocity hits Canadian firms harder than American firms.<\/p>\n

A more important fact to remember, though, is that Canada is far more dependent upon American goods than the USA is on Canadian goods. The USA is the origin of somewhere between a third and a half of Canada’s global imports. Canada cannot win a trade war with the USA. By having a trade war with us at all, Canada loses, no matter what.<\/p>\n

So the question would seem to be, why did Carney start this?<\/p>\n

We know where Carney is getting his advice. A longtime central banker who was not in electoral politics before being selected as Canada’s PM last year, he has hired American Democrat activists (yes, that’s USA Democrats) as key advisors, including as his chief of staff, to assist him in planning policies that will hurt President Trump and the Republican party in the midterms this fall.<\/p>\n

In addition, in his first year and a half on the job, Carney has signed new deals with Mainland China, committing to increase Canada’s already considerable linkage with the CCP economy. He’s basically committing Canada to be a willing vassal in China’s notorious “Belt and Road Initiative.”<\/p>\n

One wonders if the Canadian electorate had any idea that this was what they were voting for, when they elected him in 2025. The Canadian Liberals were certainly well known to be socialist in domestic policy, but it’s not at all clear that the public realized they would be electing someone who intended to make the Canadian economy a subsidiary of China Inc.<\/p>\n

Over the past year and a half, we have learned a good deal more about the Trump administration’s goals in trade and manufacturing policy. During his first term, most of us (possibly including President Trump and his appointees themselves) believed that we in the West still manufactured a lot of stuff, but we had lost our edge and were in danger, so we needed to reclaim our domestic manufacturing prominence. We believed that tariffs — along with domestic tax-and-regulatory reform — would help us build more here in the USA.<\/p>\n

\n

\"\"<\/figure>\nWhat we have learned more recently, to our shock, is how much worse it is than we thought — how severely hollowed-out our manufacturing has become, and even more importantly, how much worse it is in some other countries.<\/p>\n

We make machines in the USA that have some parts from China, some from Canada, some from Mexico, some from Italy. We would like more of the parts to be domestically made in the USA, and we assume that the Canadians, Mexicans, and Italians in the same situation would like more of their parts to be domestic as well.<\/p>\n

But what we now know is that those foreign parts that we buy from other countries besides China frequently turn out to be largely or entirely Chinese as well. We buy a switch from China and a dial from Canada, then learn that the “Canadian” dial was actually molded in China and just painted in Canada, or worse, was merely repackaged there with no alteration at all.<\/p>

Read more Dust On The Colors<\/a><\/p>\n

This discovery has led to the current crackdown on illegal origin transshipment, as well as the decision this summer to move to annual reviews of the USMCA (the treaty that replaced NAFTA in 2019).<\/p>\n

China’s grip on so much of the world’s manufacturing, both the known and heretofore unknown,\u00a0is seen to be bigger and bigger every day.<\/p>\n

The Trump Administration isn’t just fighting for the USA economy here; it’s fighting for the economies of all our allies, whether they like it or not:<\/p>\n

Trump Administration trade negotiations are designed not just to get more manufacturing here in the USA, but also to get more manufacturing in Canada, and more in Mexico, and more in the UK, and more in the EU.<\/p>\n

As we watch these battles, we see that the governments of some of those countries are kicking and screaming at the prospect. Amazingly, they don’t want to protect the jobs of their own citizens; they want to leave the status quo in place, watching their own manufacturing sectors continue to be hollowed out, watching China continue to fill the vacuum.<\/p>\n

The Chinese remain what they have been for decades: a dishonest partner, practicing every trade crime from Uyghur slave labor to currency manipulation, from material dumping to intellectual property theft.<\/p>\n

How serious is it?<\/p>\n

Well, the Chinese have been caught implanting tiny remote controls — kill switches — in a wide array of electronic components that have no possible purpose other than an ability to shut off a product an ocean away, just in case Beijing decides it wants to, someday.<\/p>\n

Is it a conspiracy theory to think that when China eventually attacks Taiwan, the second we move to support Taiwan, the Chinese will flip the switch that shuts off the CNCs and molding equipment in America’s factories, the power stations that power our electric grid, the dashboards in America’s automobiles, the cockpits of America’s airplanes?<\/p>\n

Perhaps that’s not what they have planned. But if not, why do we keep finding such remote controls in Chinese electronic components?<\/p>\n

It is now clear that the Trump Administration’s trade efforts are not just about generic protectionism; they are an effort to support the rule of law, to defend our national security, and to protect the careers of all the world’s workers who are threatened by China’s tactics.<\/p>\n

This shouldn’t only be clear to us; by now it is also abundantly clear to foreign leaders — like Carney — and their trade teams.<\/p>\n

And that raises a disturbing prospect: Perhaps our difference isn’t just about economic policy disagreements. Perhaps more “allied” countries than we thought are currently led by people who are — for all intents and purposes — agents of the People’s Republic of China.<\/p>\n

John F. Di Leo is a Chicagoland-based international trade compliance trainer, public speaker, and consultant at The Trade Compliance Coach. Read his book on the surprisingly numerous varieties of vote fraud, <\/span><\/strong><\/em>The Tales of Little Pavel<\/span><\/strong>; his biting political satires on the Biden-Harris years, <\/span><\/strong><\/em>Evening Soup with Basement Joe<\/span><\/strong>, Volumes I, II, and III; his collection of essays on public policy in the 2020s, <\/span><\/strong><\/em>Current Events and the Issues of Our Age<\/span><\/strong>; and his brand new book about the lives and times of our Founding Fathers, <\/span><\/strong><\/em>The Founding Generation, The Patriots Who Built America<\/span><\/strong>, all available in eBook or paperback, exclusively on Amazon.<\/span><\/strong><\/em><\/p>

Read more Centers for Deception Control<\/a><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

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