It started with milk when US President Trump got irritated over changes Canadian dairy farmers made to effectively stop the import of one specific product worth about $10M a year, now Canada’s softwood lumber industry is facing duties of $1B.
This, ladies and gentlemen, is just the beginning. So how did we get to this point?
Watch as I explain how we got here starting with the bizarre world of supply management and Canada’s dairy farmers which displeased Trump and is now causing us to get whacked all over the place.
Irritating President Trump on $10M worth of dairy means we’re now facing job losses over the countervailing duties on Canadian softwood lumber imports.
Last time the US imposed softwood lumber duties it took about four years to adjudicate, Canada eventually won but it cost about 10K jobs in BC alone.
Don’t think I’m playing sides and defending Trump’s actions. I’m just pointing out this is bad news and the fact is Trump is lashing out in retaliation at Canada over what he sees as unfair trading practices.
We’re facing huge losses in jobs and economic activity because one of our protectionist industries didn’t want competition. So now Trump is defending the very protectionist American lumber industry.
Forget about tweaking NAFTA, it might be time to blow the thing up and make sure that any future trade deal covers all these issues.