A proportionate response to Trump's economic war on Canada requires disproportionality

Donald Trump has said that he will impose 25% tariffs on Canada starting next week. There is a general expectation Canada will retaliate with tariffs of its own, on selected goods, in response.

If this is the sum total of Canada’s response, it will not be enough. The economic impact of America’s tariffs on Canada will be devastating. The economic impact of similar tariffs by Canada on America will be relatively minor. We need to punch the bully in the nose, and to do that, we need to be far more aggressive in our thinking. To achieve a proportionate response, we need disproportionality.

Already there are pacifists and appeasers. Pacifists are arguing we shouldn’t fight. That tariffs will only hurt us. Economist Kevin Milligan correctly noted on Bluesky that, yes, the actions we take will impose costs and pain on all of us, but that the point of retaliation is to show the US we will not stand by and cave to economic pressure, and that we need to push back to compel Trump to reconsider his actions against Canada sooner rather than wait it out and suffer prolonged consequences.

The appeasers are even worse than the pacifists. Alberta Premier Danielle Smith has suggested we simply roll over, give Trump what he wants, and hope the bully will be nice to us. If taken seriously, Smith’s ideas only serve to undermine Canada at a time of economic war. Caving to the bully who threatens our sovereignty and security is beneath the role of any public officeholder, and Smith’s cowardice and willingness to capitulate demonstrate just how unworthy she is to hold office.

Canada needs to punch back with something more fierce than mere retaliatory tariffs, and the federal government has full authority to enact the needed measures unilaterally. In addition to import tariffs, we should impose export tariffs - or even export bans - on oil and gas, crucial minerals, and anything else vital to US interests. Beyond that, we should treat Trump and members of his administration like Elon Musk as akin to Russian oligarchs. That means targeted bans on Starlink, X, and even Tesla should be seriously considered. Starlink is a particularly easy target given the security threat it represents, and there are other ways to ensure people in rural areas have Internet access. We should also ban the purchase of cryptocurrencies that Trump, his wife, and others have created to enrich themselves while in office. (Beyond the naked corruption, the entire category of cryptocurrency itself is mostly a venue for criminality and pyramid schemes, not to mention environmentally destructive).

We need to impose meaningful costs on the US for its economic aggression, and we need clear messaging - indeed, an advertising blitz - to make sure Americans know why they face rising costs and that Trump can easily end the war he is about to start.

Canada is the 10th largest economy in the world, and we need to act like it. There are few legal or constitutional limitations on the actions the federal government can take in an emergency like this. The only question is whether our elected leaders can come together and show us, and Trump, that they have the will to fight.