Trump 'terminates' Canada trade talks over anti-tariff advert featuring former President Reagan

Key Concepts

• Trade Wars: A situation where countries impose tariffs on each other's goods, leading to retaliatory measures and economic damage.
• Tariffs: Taxes imposed on imported goods, intended to protect domestic industries but can lead to higher prices for consumers and retaliatory actions.
• Protectionism: Economic policies that restrict imports to protect domestic industries, often through tariffs and quotas.
• Free Trade: An economic policy that promotes the unrestricted exchange of goods and services between countries.
• Economic Stimulus: Government actions designed to boost economic activity, such as tax cuts or increased spending.
• Deficit: The amount by which a government's spending exceeds its revenue.
• International Leadership: The role of a country in shaping global norms, policies, and alliances.

Anti-Tariff Advert and Trump's Reaction

The Ontario government in Canada released an anti-tariff advertisement featuring excerpts from a 1987 radio address by former US President Ronald Reagan. The advert highlights Reagan's warnings about the negative consequences of tariffs, stating that they "inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars," which can cause markets to "shrink and collapse, businesses and industries shut down, and millions of people lose their jobs." The advert concludes by emphasizing Reagan's belief that "the way to prosperity for all nations is rejecting protectionist legislation and promoting fair and free competition."

US President Donald Trump reacted strongly to this advert, calling it "fake" in an online statement. He attributed the campaign to the Canadian federal government rather than the provincial government of Ontario.

Authenticity and Misrepresentation of the Advert

David Dunn, a professor of international politics at the University of Birmingham, clarified that the advert is not "fake." He explained that it uses "edited bits" from a 1987 broadcast recorded at Camp David. While the advert is only a minute long and not the entire broadcast, Dunn asserts that "the essence of his speech and the essence of the ad are the same." He further elaborated that the Reagan Foundation's claim of misrepresentation is not accurate regarding the core message.

Trump's Irritation and Political Sensitivity

Dunn suggests that Trump's irritation stems from the use of Reagan's words, given Reagan's iconic status within the Republican party and America. Trump, who supports his tariff policies, is likely bothered by having Reagan's anti-tariff sentiments broadcast, especially during a politically sensitive time.

Supreme Court Review of Tariffs

A significant factor contributing to Trump's reaction is the upcoming Supreme Court review of the legality of his tariffs, scheduled to begin the following month. The advert is timed to influence this decision, which Dunn describes as a "finely balanced decision" regarding Trump's economic strategy of using tariffs to fund tax cuts for the wealthy. Trump's "petulant way" of reacting is seen as an attempt to counter this influence.

Reagan's Stance on Free Trade

Reagan was a staunch defender of free trade. Dunn noted that in his entire 1987 address, Reagan "doubles down on the idea that protectionist policies are extremely damaging to the American public and to its economic prosperity." Trump's denial of reality by calling the advert "fake" is an attempt to shape public perception and reject past policies.

Trump's Tactics and Canadian Response

Trump's attempt to punish Canada for the Ontario ad by pressuring them to remove it from circulation is unlikely to succeed. Dunn argues that Canada, whose economy has been significantly impacted by the tariffs, is trying to influence the Supreme Court decision, and Trump is employing "bullying tactics" to counter this.

Contrasting Economic Visions: Trump vs. Reagan

While both Reagan and Trump were tax cutters, their economic approaches differ significantly. Reagan's tax cuts, though leading to a ballooning deficit, created an economic stimulus that resulted in growth during his terms. In contrast, Trump is using tariffs, which Dunn describes as an "extra form of taxation," to fund tax cuts for the rich. These tariffs are also disrupting markets such as petroleum and gas, the automobile sector, agriculture, and the import of steel and aluminum from Canada. Dunn predicts that these tariffs will eventually cut growth, reduce employment, and cause economic problems. He also warns of "mayhem" if the Supreme Court overturns the tariff decision, as all paid tariffs would have to be refunded.

Reagan's Hypothetical View on Trump's Policies

Dunn believes that Ronald Reagan would be "turning in his grave" not only due to Trump's trade policies but also because of his "abdication of American international leadership." Reagan would likely be horrified by Trump's abandonment of policies he stood for, such as upholding international rules and confronting aggressors like Russia over Ukraine.

Conclusion

The Ontario government's anti-tariff advert, using authentic excerpts from Ronald Reagan's 1987 speech, has triggered a strong negative reaction from US President Donald Trump. Trump's claims of the advert being "fake" are disputed, with experts asserting that the advert accurately reflects Reagan's anti-protectionist stance. The timing of the advert, coinciding with the Supreme Court's review of Trump's tariffs, highlights its political significance. The core of the issue lies in the stark contrast between Reagan's free-trade principles and Trump's protectionist policies, which Dunn argues are detrimental to the US economy and its international standing.