Canada versus Trump
From the Socialist Party of Canada’s monthly newsletter.
You are all aware of the declaration of trade war Trump imposed on the rest of the world on April 2. In Canada there was a sigh of relief that it wasn’t as bad as many feared. Nevertheless, he kept the existing 25 percent tariffs on Canadian steel and aluminium and will maintain tariffs on Canadian goods that don’t comply with the North American trade deal that sets rules about limiting foreign content.
Though Canada hasn’t been hit with tariffs as hard as some countries, nevertheless its effects are still felt. A survey conducted by the city of Toronto showed that Toronto businesses are bracing for job cuts and cost increases. Of the 513 businesses that responded, one third said they were implementing hiring freezes, while another third were expecting job cuts. Three quarters were anticipating rising costs, which was the most common concern, while about half are expecting major disruptions to their operations. The city promised to allow companies who can show they’ve suffered because of tariffs, a six-month property tax reprieve.
American companies will not get contracts from the city. Other cities across Ontario are also bracing for the impact; at a conference of city mayors on April 3, they asked the provincial and federal governments for a portion of ‘any stimulus package’, especially for infrastructure funding. Most Canadians are hoping for the federal government, elected on April 28, to be able to deal with the worst aspects of tariffs.
Canada is hitting back at Trump’s tariffs with import taxes as much as 25 percent on vehicles assembled in the U.S. Ford, GM and Stellantis are the automakers with the biggest share of Canadian sales that rely on imports from the U.S. For all three companies a majority of the products they sell in Canada are made in the U.S. Under Canada’s new rules, the amount of tariffs on a vehicle will depend on its components, though Mexican parts are exempt. If a car is assembled in the U.S. with 80 percent U.S. parts and 20 percent Mexican or Canadian components, the 25 percent levy will apply to the U.S. content, resulting in a total tariff rate of 20 percent. One thing about capitalism, life under it gets more complicated every day.
One positive thing about the stupid trade war is the fact that thousands of American physicians want to come to Canada. John Philpott, CEO of CanAm Physician Recruiting Inc., a Canadian company which specializes in bringing international medical personnel to Canada, said since Trump took office there has been a 63 percent increase in registrations from American doctors wanting to work in Canada. Philpott said, ‘My phone’s been ringing off the hook.’ The surge in interest comes as the U.S. faces health care funding cuts, mass layoffs and hiring freezes, including at the Center for Disease Control and Prevention, which has lost 2,400 jobs. Before Trump was elected many Canadian doctors went to the U.S. for more money; Trump quickly and surely changed that. Of course this can only be beneficial to Canada’s shaky health system, but it’s just an improvement within capitalism which we as socialists work to abolish.
We of the SPC as individuals are against Canada becoming the 51st. state, but politically we will not work against Trump’s mad intention. Whether Canada remains Canada or becomes part of the U.S. it still means exploitation of the working class.
Federal election
The Liberals under Mark Carney won 169 seats at the federal election on April 28. This was 3 seats short of the majority they needed; the Progressive Conservatives (PC) winning 144. The leftist New Democratic Party (NDP) won 7, the Bloc Quebecois 22 and the Greens won one. Most people thought it would be a tight race which it was. Both Pierre Poilievre and Jagmeet Singh lost their seats, which must’ve been humiliating. In Poilievre’s case it may well have been his smart-ass personality and his constant personal attacks on his opponents which done-him-in. With Singh, whose party lost 7 seats, it was probably because so many would-be N.D.P. voters voted Liberal, not wanting to split its vote, thinking Carney would do a better job of standing up to Trump than Poilievre, which was the main election issue.
The Toronto Star endorsed the PCs in the election on April 28. Its main points were that Canadians should support a government that is for free enterprise, eliminates barriers such as cutting red tape, restores fiscal discipline, reforms the tax system and develops ‘our’ natural resources and ‘That is why we are supporting Pierre Poilivere and the Conservative Party of Canada’. Since its founding in 1892, the Star’s main mantra has been to this effect, ‘Hey listen up folks, capitalism isn’t the economic piece of junk Marxists would have you think it is. No Siree, it’ll work just fine if you smooth away its rough edges’. You might think that with their crusading and reforming zeal they would support an openly reformist party like the NDP or its predecessor the CCF, but no, they go for a blatantly ‘screw the working class party’.
Of all the provincial Premiers, Alberta’s Danielle Smith seems the likeliest to make a deal with Trump. This is probably because Alberta does a lot of business with the United States selling oil and energy. Recently Smith showed some of her conservative friends she had painted her toenails red to show her support for Canada which fooled few, if any. A Leger poll conducted in March showed that 15 percent of Albertans would like to be part of the 51st state, as 9 percent of the population as a whole. This amazed me as every Canadian I’ve spoken to and of those I’ve read in print are dead against it. Smith has given Carney a list of energy-related demands which includes scrapping a federal tax on oil and gas emissions, eliminating an electrical vehicle mandate and ending prohibitions on single-use plastics. That sounds tough, but some of those issues apply to other provinces.
Carney now has to form a coalition of sorts to get legislation through. Besides taking on Trump’s junk, Carney will have to deal with a possible postal strike, a health system in near chaos, crime which is out of control, housing problems galore including homelessness and a soaring cost-of-living, especially grocery prices; like, ‘Good Luck Mate’. For the working class in Canada, life would be slightly better if Canada did not become state 51, but nevertheless exploitation is exploitation and whether one is exploited as an American or a Canadian it sucks and not a one of the recently elected MPs will take a stand against it.