After Trump's address to Congress, MUN prof isn't sure U.S. has appetite for trade war
Russell Williams says Canada has to retaliate to U.S. tariffs and needs to be firm in fight
U.S. President Donald Trump defended his trade war in Washington, D.C. Tuesday night — but a Memorial University professor says residents south of Canada's border may not have an appetite to endure the tactic.
MUN political scientist Russell Williams, who stayed up late to watch the address, said Republicans seemed to positively react to comments about Mexico's border security and migration issues.
But while the audience applauded tariff talks, they appeared were less interested, he said.
"I felt like the event went a little flat when he talked about the trade relationship. That was not what was animating that largely Republican audience," Williams told CBC Radio's The St. John's Morning Show.
"I'm not sure the appetite in Congress and the appetite in the Senate is quite there for what Trump is doing."
Trump's speech was long and meandering, filled with grievances and falsehoods, Williams said.
"I think actually when we listen to Trump talk about trade, we all get dumber. He says things that make no sense," he said.
If border security and fentanyl are serious concerns in Trump's eyes, Williams said Trump wouldn't be mocking Prime Minister Justin Trudeau and Canada.
"They're making it harder for Canadian policymakers to co-operate with them on whatever they want," he said.
The U.S. stock market dropped in response to Trump's tariffs, but the U.S. president didn't address the market in his speech. He did say, however, the American public could feel short-term pain.
Canada has no choice but to retaliate with counter-tariffs, said Williams, and it will need to be organized and cohesive in the response to the trade war.
"If we want it more than Americans want it, we can survive this and hopefully get the United States to rethink what it's doing," he said.
Wait and see
There are business leaders in Newfoundland and Labrador who believe U.S. tariffs won't stay in place for long.
Peter Woodward, president and CEO of Woodward Group of Companies in Happy Valley-Goose Bay, believes the 25 per cent tariffs on Canadian goods is a negotiation tactic for Trump.
"What he wants at the end, I'm not sure, but I'm fairly confident that you're going to see some significant changes in his negotiating," he told CBC Radio's Labrador Morning.
Woodward said people shouldn't worry over the trade war, and that Trump is known to quickly change course on policies.
"I'll be very surprised if he doesn't do another 180 on a lot of the stuff in the near future and we'll find out actually what he wants," he said.
Woodward said tariffs haven't impacted the cost of food or vehicles just yet, which could take months. He said a vehicle part crosses the border several times during the manufacturing process.
"That becomes very expensive if it collects duty each time that it goes across the border," said Woodward.
But, he believes the real focus isn't Canada but China, due to its capacity to build far more cars.
"The president likes to keep everybody off balance. He likes to push people off the edge of the table and make them teeter," Woodward said.
But some are already worried about the future.
Deborah Osborne, vice-president of customs and consulting with international trading company P.F. Collins, says her clients are panicking.
"They're all up in arms thinking that this is going to impact them in a major way, that they don't know if they continue business," she said.
Osborne said clients aren't sure how the tariffs are going to specifically impact them, but to help them she has been holding seminars to discuss the importer side of business and give suggestions on diversification options.
She said this isn't the first time people have panicked about Canada becoming the 51st state. When the first free trade deal was signed between the U.S. and Canada people had similar fears.
"I think we're just in the fog. We will come out of it. We Canadians are resilient. We're smart. We're educated," said Osborne.
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ABOUT THE AUTHOR
With files from The St. John’s Morning Show and Labrador Morning