When President Donald Trump starts musing about tariffs, it’s easy for the headlines to spark anxiety. But before anyone starts hitting the panic button, consider that trade between Canada and the U.S. isn’t some casual handshake; it’s a deeply intertwined economic relationship built over decades. Guelph MP Lloyd Longfield says, “That kind of alliance doesn’t just unravel overnight because of one tweet or off-the-cuff remark. I think people should know that if tariffs are implemented, we are prepared to respond. But so much of what comes out of the new President’s mouth is just musing and noise and entertainment to some people.”
MP Longfield is urging individuals who are anxious and alarmed to consider that Trump is targeting many countries. He says, “One person against another is a story; one person against a country might be a story; but one person against the entire world is just noise.”
Our economy is strong
While tariffs can do some short-term damage, Canadians should remember that our economy is strong. Just last month, another 76,000 jobs were created, nearly half of them in the manufacturing sector.
MP Longfield points to the exciting manufacturing opportunities in Guelph. In January, Linamar Corporation announced it is making a $1.1 billion investment to expand its operations to develop key components for hybrid and electric vehicles. MP Longfield says, “The federal government made a $169 million investment to support Linamar’s Driving Green Technology Project, which accelerates the development of green technologies in the auto industry. This makes Canada competitive in the global market. It’s a message to the world that Canada will continue to be a key player in the automotive supply chain business."
Strengthening bonds with Europe
In the face of tariff and takeover threats by Trump, Prime Minister Justin Trudeau is working to strengthen trade and security ties with European allies. Trade with the U.S. accounts for about 30% of Canada’s GDP and MP Longfield believes Canada needs to diversify. “Canada does have a free-trade agreement with the European Union, its second-largest trading partner. There are opportunities for us to increase trade with the EU, specifically with sectors that currently buy from the U.S. when we have similar products in Canada.”
Canada is well-positioned to expand its trading markets across the Atlantic and around the world. It has free-trade agreements with South America and Asia and well-functioning ports in Montreal and Vancouver. MP Longfield says, “I would personally like to see us increase trade with Europe. In the past decade, we’ve faced two trade crises with the U.S., and I think the time is now to look at diversifying away from the U.S. and removing transportation impediments to trade overseas.”
Hitting back with precision
Canada isn’t just sitting back and taking Trump’s tariffs, MP Longfield says, “Our government’s strategy is to impose counter-tariffs on key U.S. industries while ensuring that every dollar collected goes to support Canadian businesses impacted by the tariffs.”
And the targets will not be random. They will likely include products such as orange juice from Florida and Harley-Davidson motorcycles from Wisconsin, Republican states that support Donald Trump. MP Longfield adds, “We are being very strategic with tariffs on businesses that export large volumes of product into Canada from Republican districts.”
Retaliating with their wallets
Canadian consumers are also fighting back with resolve. Grocery carts once containing Florida oranges and California lettuce at now stocked primarily with Canadian product or goods imported from anywhere else but the U.S.
This quiet but powerful consumer revolt sends a clear message; if the U.S. wants to play hardball Canadians are resolved to support their own industries and strengthen economic ties elsewhere. MP Longfield adds, “As a government, we will respond to that. That’s the difference in approach between a Liberal and Conservative government. The Conservatives make decisions from the top down, while the Liberal approach is from the bottom up by listening to the people that we serve.”
Canada will weather the storm
Canada has some key economic advantages. MP Longfield points out, “The low Canadian dollar makes Canadian exports more competitive so U.S. businesses that rely on Canadian steel, aluminum and other goods might think twice before shifting suppliers.”
Canada has a well-educated workforce and expanding ties with Europe and Asia will make Canada less vulnerable to Trump’s economic tantrums. Trade officials will eventually vet the tariffs, businesses will adapt, and the market and U.S. businesses will respond. MP Longfield offers this advice. “We need to take a breath and get off social media because the noise on social media is making people anxious. If you tune out or turn it off, it’s better for everyone.”
As for Trump’s threatened economic coercion to force Canada to become a 51st state, MP Lloyd Longfield believes that’s just noise as well. “None of this can happen in a vacuum, any measures the U.S. may take whether tariffs or a takeover attempt will have NATO and international responses, and they will be strong. It would be Donald Trump versus the world.”
MP Longfield adds, “Our response should not be anxiety but rather looking for alternatives. We know Canadians are very smart about protecting themselves, their families, and their country.”
Contact MP Lloyd Longfield at (519) 837-8276, by email: [email protected] or visit here.