How Trump uses disinformation in his trade war with Canada

The ongoing trade tensions between the United States and Canada have once again come to the forefront, with U.S. President Donald Trump complaining about what he perceives as exorbitant tariffs imposed by Canada on American dairy products. In a recent statement made in the Oval Office, Trump expressed his frustration, stating, \”Nobody knows that Canada is charging our dairy farmers. They have 270 per cent tariffs. Nobody knows that. Nobody knows it. They have up to 400 per cent. They have a couple of tariffs at 400 per cent. Nobody talks about that.\”

However, the reality is more nuanced than Trump’s claims suggest. While it is true that Canada does impose tariffs on certain U.S. goods, the majority of trade between the two countries occurs under a zero-tariff rate. In fact, over 97 per cent of U.S.-Canada trade in agricultural goods and over 99 per cent of trade in manufactured goods are tariff-free.

The tariffs that Trump is referring to are over-quota tariffs, which are only charged when trade in certain items exceeds a certain volume. These tariffs are intended to discourage excessive imports and are rarely applied in practice. Most trade between the U.S. and Canada is not subject to these high tariffs, but a small number of products, such as dairy and poultry, are protected by quota systems in both countries.

While Trump and his administration have been vocal about Canada’s tariff rates, they have conveniently omitted to mention the over-quota tariffs imposed by the U.S. For example, the U.S. charges a 350 per cent tariff on tobacco, the highest tariff affecting U.S.-Canada trade.

The misinformation spread by the Trump administration regarding trade between the U.S. and Canada could potentially prolong the ongoing trade war between the two countries. By presenting a skewed version of the tariff rates, the administration may be able to garner more support for its trade policies, despite the fact that the majority of trade between the two nations is tariff-free.

It is important to look beyond the rhetoric and understand the complexities of trade relations between the U.S. and Canada. While there are legitimate concerns about certain tariff-rate quotas, it is crucial to have an accurate understanding of the trade landscape in order to reach a fair and mutually beneficial agreement. As negotiations continue, it is essential to focus on the facts and work towards a resolution that benefits both countries.