An online question: “Could the tensions between Canada and the United States escalate over trade, resources, and rude insults?”
This feud between two once-good neighbours could turn into something irreparable, if it hasn’t already.
Let me explain;
- In our finest days, the U.S. and Canada were, by definition, joined at the hip; we were that close as nations. We were envied by the world for having the longest undefended border between two friendly countries.
It was not uncommon to see U.S. and Canadian family members travelling back and forth between the two countries. However, —- that was then.
A few years back, passports were required to cross into either country. and through all fairness, “under a different US administration.” Right or wrong, at that point, I could smell something in the air. Could that homeland security adjustment be the changes we now see matured today? Maybe.
Changing Leadership, Changing Attitudes
The shift in thinking has escalated since that time, and the relationships between new Presidents and different Prime Ministers have also changed with the times. One country is now suspicious of the other and might feel that one has been taking advantage of the other.
On social media, Donald Trump has posted, “The United States is not going to be subsidizing Canada any longer,” adding, “We don’t need your Cars, we don’t need your Lumber, we don’t need your Energy. And the insults keep on coming.
- Well, you, the reader, can be the judge of what is really happening behind the scenes at the White House. However, in my way of thinking, that comment from a highly respected position could not be further from the truth.
The Avro Arrow: A Turning Point
In a previous article, I wrote hours of behind-the-scenes research on Canada’s Avro Arrow Interceptor. Today I dislike bringing up the Avro incident because it’s old news and there is not much more you can say that’s not already been said; however, if Canada’s dependence on the U.S. wasn’t there before the cancellation of Canada’s finest aviation achievement, then it began with these famous words: “Dump the Arrow, good buddy, and we’ll take care of you, ”wink, wink.” And that’s where Canada is today or was … ‘yesterday. ‘
Even back then, our leaders took the easy way out, and they are partly responsible for today’s rift with the US.
Returning to today’s question: could tensions between Canada and the U.S. escalate over trade?
Well, in this author’s opinion, combined with today’s attitudes between two long-standing neighbours, maybe the time has come for a drastic transformation on both sides. I often use this one-liner in bullshit conversations, which fits perfectly here: “The honeymoon is over.”
Economic Dependence and Its Consequences
The interdependence between the two nations worked well for many years. Canada bought American-made products, and in return, the U.S. enjoyed a reliable market and political ally. Canada, for its part, benefited from American research, development, and industrial strength, but at a cost: ‘they took the fame and glory out of Canada’s contribution.’
But we must all understand that the dependency worked well for both countries. We bought American-made products; they were Canada’s biggest trading partner, and they loved us for it. In my view, Canada didn’t have to spend money on research and development, the Americans did it for us. Americans supported Canadian university development. Canada didn’t have to bear the cost of developing its own branded car; instead, we had American-made vehicles like GM and Ford products. As mentioned above, “they would look after us.”
My concern, even back then, was: why didn’t Canada’s leaders see this day coming? I did! All the profits, engineering, technology, fame, and glory went to the one paying the bills, the United States. And yes, even the brain drain went outside Canada to the highest bidder. We were puppets in a system the Americans created for us, and we were more than happy to oblige.
- So, for many years, this arrangement worked comfortably for both parties.
And that, my friends, brings us to where we are today with this question: “Could the tensions between Canada and the U.S. escalate over trade?”
Trump once said, “We’re tired of Canada stealing our jobs.” However, the U.S. set this whole scenario up many years ago; they wanted Canada to become dependent. Canadians weren’t stealing jobs; we helped the US economy, and the wealthy got wealthier.
- Here’s a glimpse into my mindset. As memory serves me, the Canadian dollar, ‘give or take’ — 30% lower than the U.S. dollar, and as that same memory serves me, that’s because the U.S. wanted a better deal with Canadian manufacturers. That coincides with the part of the story you just read.
Now, that part could have been a rumour, and not all financial analysts would agree because there are many behind-the-scenes reasons why some countries’ currencies are worth more or less than others. The link below will not agree with my thinking.
Although the Canadian dollar is still worth a dollar in Canada, when you buy on Amazon, shop across the border, or vacation in sunny Florida, you have to eat the difference in the exchange rate. Canadians lose big time on that transaction.
Up to today, the exchange rate has always been accepted by Canadian tourists visiting Vegas or California. The “why” question has always been dismissed but if you add 30–60% tariffs on top of the exchange rate Canada already pays, that’s considered, in my way of thinking, robbery in its purest form.
So that’s the big question: At what point does Trump see that Canada is taking advantage of the U.S.?
Well, one month into Donald Trump’s term, he loudly mentioned … ”We’ll bankrupt Canada,” was the cry.
As Canadian citizens, we have to make and sell goods at a discount to the U.S., visit and spend money in their cities, and spend billions every year helping the U.S. economy. So the question is: at what point do we have to pay them just for the privilege of visiting their country?
**** Then you have to wonder, which country, Canada or the U.S., is taking advantage of whom?
Most Canadians will agree that anyone visiting the US can say we have all had fond memories the U.S. However, the nail in the coffin came when Donald Trump issued this statement: “Anyone wanting to visit the United States has to pay another entry fee, just for the privilege of stepping on U.S. soil,” or ”we’ll bankrupt Canada.” Even belittling our Prime Minister.
That move has led to a boycott. Canadians are avoiding travel to the U.S., and even boycotting Tesla electric cars. …. Which brings to mind: ‘‘if GM pulls its car manufacturing out of Canada, … boycotting anything , even their cars will be fair game.”
- As the U.S. President recently said, “We don’t need anything from Canada. We don’t need their lumber, their steel, nothing.” Well, this next comment, coming from an ordinary Canadian Schuck, ‘We both benefit from each other.’
Could tensions between Canada and the U.S. escalate over trade?
*** Well, folks, as I wind my story down and the dust settles, ”and it will,” the manufacturing of goods we once purchased from the U.S., the profits will now stay in Canada. Canada’s trade and resources will be spread across the world, and Canada, in the end, will be recognized as a powerhouse. Today, I now see a positive change in the wind, thanks to the arrogance of one man. ”I’m American, you can’t do that.”
Canada stands united like never before. ”Elbows up is now the official motto.”
Conclusion
- Trump is playing a game of ‘teasing the rabbit with a carrot.’ That is the way I see Donald Trump treating the rest of the free world and a once-friend. But I think he underestimated Canadian patriotism, like his buddy Vladimir did, with Ukraine.
He made a big mistake with Canada. “Elbows up” is now the official Canadian motto.”
****Special Note: These famous words: “Dump the Arrow, good buddy, and we’ll take care of you, ”wink, wink.” Meaning ”U.S. militarily will take care of Canada.” I can not verify to be true however, shortly after that statement, Canada cancelled the Avro Arrow program.
It is also worth noting ”Canada never built another fighter jet on Canadian soil.
Today, Canada is at the mercy of buying armament from other countries instead of manufacturing its own. We should have stayed the course from years ago.” So folks … that wink, wink story has more truth than fiction. However, this is only this author’s opinion. …. Share my story if you like ….
📢 Long overdue, Canada, ”Elbows up is now the official motto.”
Opinion By Dave Wettlaufer
