By Ana Pereira | The Toronto Star
When U.S. President Donald Trump threatened to launch a full-blown trade war with its closest ally, many Canadians felt as if their best friend had suddenly turned around and stabbed them in the back.
Trump’s string of accusations, along with increasingly hostile suggestions that the U.S. annex Canada as “the 51st state,” have led many to pledge boycotts of American products. The majority of Canadians now support calling on the government to reduce our reliance on the U.S. as a trading partner, according to a recent poll by the Angus Reid Institute of more than 1,800 adults.
Patriotism aside, there are solid economic reasons why Canada might want to consider reducing trade with America, according to economists. Trump’s threats have introduced a major source of uncertainty in a decades-old trade partnership that saw Canada give up some of its independence in exchange for economic prosperity and stability.
It’s a relationship that has benefitted both economies, with nearly 80 per cent of Canadian exports currently ending up south of the border, but it was built on trust, and trade experts say that trust is now gone.
Is achieving a greater degree of economic independence from the U.S. really possible? Can we really undo decades of integration without seeing our economy crumble?
The Star spoke with economists, academics and other experts, including SCP CEO Matthew Mendelsohn, about how the country should best navigate this new era of Trump’s isolationism, and found there are realistic steps we can take to reduce our dependence on the States.
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