As Canada faces the repercussions of U.S. tariffs imposed by President Donald Trump, experts are calling for a significant overhaul of the country’s trade defense mechanisms. The recent tariffs, enacted under the guise of a national emergency, have exposed vulnerabilities in Canada’s diplomatic approach, which has long relied on the belief that friendship with the U.S. would ensure fair treatment. The tariffs were not the result of a strategic plan but rather a political reaction that undermines the notion of allies working together. In light of this, experts argue that Canada must stop seeking permission from Washington to protect its interests. A proposed solution is the introduction of a Sovereign Economy Act. This legislation would empower the Canadian government to impose retaliatory tariffs, secure critical industries, and freeze assets of hostile economic actors within 48 hours of a U.S. trade violation. The U.S. Supreme Court is expected to soon rule on the legality of Trump’s use of the International Emergency Economic Powers Act to impose tariffs. If the court strikes down the tariffs, the administration may resort to other legal avenues, such as the Trade Expansion Act or the Trade Act. Conversely, if the court upholds the tariffs, it would set a precedent allowing future presidents to impose unilateral taxes. Canada’s trade law division is significantly outmatched by the resources available to the U.S. Trade Representative, which employs hundreds of legal and economic experts. In contrast, Canada’s trade law capabilities are limited, often leaving Canadian businesses at a disadvantage in international disputes. Experts emphasize that Canada’s response must be structural rather than sentimental. Relying on American restraint or international arbitration is insufficient. Instead, Canada needs legislative powers that enable it to respond effectively to U.S. actions. The proposed Sovereign Economy Act would allow the federal cabinet to impose mirror tariffs, restrict procurement from hostile nations, and ensure supply chain redundancy in critical sectors such as rare earths and pharmaceuticals. In addition to legislative changes, experts recommend the appointment of a trade tsar to coordinate responses across federal, provincial, and business sectors. This role would be complemented by a permanent trade security council within the Privy Council Office, integrating economic intelligence with legal strategy. In the U.S., trade is treated as a national security issue, with various agencies working collaboratively. In Canada, trade is often managed by public servants who juggle multiple responsibilities, which hampers effective negotiation and response. To ensure Canada can effectively defend its interests, experts argue that a comprehensive approach is necessary, combining legislative power with institutional support. Without these changes, Canada risks continued vulnerability in the face of U.S. trade policies.
Canada Urged to Strengthen Trade Defenses Amid U.S. Tariffs
Canada News5 hrs ago
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