At the risk of sounding like Jason Kenney, where’s John A. Macdonald when we need him?

Former Alberta Premier Jason Kenney (Photo: David J. Climenhaga).

I speak, of course, not of the policies that gave rise to the tragic legacy of Canada’s first prime minister so admired by Alberta’s first United Conservative Party premier – opposed as Mr. Kenney was to seeing the heads of mere statuary roll – but of Macdonald’s approach to tariffs.

The National Policy, that is – infrastructure, immigration, and tariffs. Plus, it might be fairly added … no little imagination.

Certainly, a National Policy of transportation and tariffs seems like a better elephant with which to trample the Liberals than the contemporary Conservative Opposition’s pathetic surrender to all things MAGA, no matter how idiotic. 

It’s frankly embarrassing to see Canada’s first ministers scrambling over one another to expose their bellies to U.S. president-elect Donald Trump after his opening negotiating gambit in his campaign to beat up Canadians to satisfy his urge to beat up Latin Americans, or whatever it is he’s trying to prove.

It’s so early in this thing that we don’t even know what he wants to negotiate, if anything, when he proposes to subject everything we export to the United States to a 25-per-cent tariff.

U.S. president-elect Donald J. Trump (Photo: Gage Skidmore/creative Commons).

That’s so large it could be fairly described as a sanction far more likely to be effective than the supposed sanctions from hell the United States imposed on Russia in 2022, which seem to have had the principal effect of de-industrializing America’s Western European allies and shoring up Russian President Vladimir Putin’s domestic popularity.

Meanwhile, Pierre Poilievre, the federal Conservative leader and putative next prime minister of Canada, stands on the sidelines demanding at least an equal measure of servility and grovelling impotence in response to Mr. Trump’s threats as do our first-ministerial co-dependents! 

You don’t have to read The Art of the Deal to understand that this is not a good way to negotiate, especially from a position of relative strength in the form of vast oil reserves, even if they are all mixed up with billions of tons of sand and the market’s about to crater if Mr. Trump can keep his tiny paws of those woke renewables Stateside. 

Mr. Trump is probably just being spiteful, and dumb. That would certainly be on brand. But who really knows? 

Still, you can’t keep the U.S. Air Force in the air with batteries, can you? At least not yet. So as Macdonald might say, thinking of some tariffs of his own … Tally Ho! 

Canadian Conservative Leader Pierre Poilievre (Photo: Mykola Swornyk/Creative Commons).

Perhaps Mr. Trump would like to de-industrialize Canada as U.S. President Joe Biden’s presumed pipeline sabotage and confirmed sanctions regime have impacted Germany and the rest of the European Union. If so, the job won’t be as formidable. Thanks to modern “free trade” and the Stephen Harper government, we Canadians have to a significant degree taken care of that ourselves. 

We’re quickly getting back to doing nothing much but shipping staples, as described by Harold Innis, who wasn’t talking about office supplies. In other words, a situation with which Macdonald would have been familiar.

Canadians need to understand that Mr. Trump had to create the current fake emergency on the United States’ northern border to justify imposing tariffs on an emergency basis under the 1974 Trade Act without the assent of the U.S. Congress. And even so, he is restricted to 15 per cent, for 150 days.

This is true even if a couple of toadying Conservative premiers obsequiously say they think he has a point about U.S. border security. (Securing which, as someone said today, you’d think would be an American job, not ours.) 

Alberta Premier Danielle Smith (Photo: Alberta Newsroom/Flickr).

“Team Canada,” as we embarrassingly insist on calling our federal-provincial negotiators in such anxious circumstances, would be better advised to keep their powder dry and wait to see how this shakes out in Congress, not to mention in the once and future president’s diminished attention span. 

Thanks at least in part to the divisive tactics of our own Premier Danielle Smith here in Wild Rose Country, this is unlikely to happen. In that great Calgary tradition, our Albertan politicians can be depended upon to demand a stampede to the worst deal possible, especially when it offers the side benefit of an excuse to continue battering Prime Minister Justin Trudeau. 

The blunt fact is, as long as Mr. Trudeau is prime minister, there is no way that Ms. Smith is going to be any kind of team player. And it’s unlikely it’ll make much difference after he goes. 

Professor Harold Innes circa 1920 (Photo: H. James, Public Domain).

Well, it was too much free trade that got Wilfrid Laurier turfed from office in 1911, but it unfortunately didn’t work in 1988 with Brian Mulroney.

Still, it’s not as if we weren’t warned about the risk that Mulroney’s “free-trade” policies would ultimately get us to precisely where we find ourselves today. 

Here is Professor Mel Watkins, economist and co-founder of the NDP’s now all-but-forgotten Waffle faction, speaking to us from the grave: In 1985 Watkins asked aloud if Canada should tie itself even more tightly to a “grossly mismanaged” American economy sustained mostly by enormous arms spending, which he termed “military Keynesianism”? 

“It is one thing for Canada to be tied to an efficient, well-managed, benign economy, another to be tied yet more tightly to a crisis-ridden economy that seems at times resolved to solve its problems without regard to the interest of others,” he wrote. “There is a need for Canada to attempt to distance itself more from the United States, difficult as that would be.”

Professor and NDP Waffler Mel Watkins in 1972 (Photo: Toronto Star Digital Archive/ Courtesy of Toronto Public Library).

He concluded: “If the U.S. moves to protectionism, Canada should try for exemptions – but not at any price. … What Canada needs is to ‘secure and enhance’ its market for domestic producers. It needs to move, not along American lines – to deregulation, more ad hocery, and arms-spending style job creation – but along an indigenous path to a comprehensive industrial policy and conscious economic planning.”

Wise words from a Canadian Cassandra

Macdonald’s tariffs of 17.5 to 20 per cent put cheap manufactured goods from the United States at a disadvantage to protect Canadian industry, which was in its infancy, getting it off to a good start notwithstanding a lot of complaining out here on the Great Plains. 

Maybe we should think about how to Make Canada Great Again!

NOTE: Prof. Watkins wasn’t around to ask permission, but I have taken the liberty of inserting one small punctuation edit into this passage, for clarity, which surely he would have agreed to had I been his editor in 1985. DJC

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27 Comments

  1. Your planes and fuel points out one fact in Canada’s favour. Canada supplies15% of US fuel. While American production boomed at first with fracking it had deen in declne for 5 yeras. Drillng won’t help if there is no more left in the ground.

    If Canada still sells oil the US can’t do without, Canadians will still get full price and American consumers will pay more and they are extremely sensitive to the price at the pumps. Pressure on Trump will come from Americans and all Canada has to do is watch and wait.

    1. Not only that but being a good number of those tar sands companies are owned by American interests! I imagine their lobby is working quite hard rn to shore up those investments and ensure their profitability under the new administration. Not to mention they’re importing that oil to refine it, in their refineries, which is a rather significant industry in its own right, I would say one with the power to unseat or even assassinate (?) a president? Ask HW Bush.

      I really doubt we’ll see tariffs on tar sands, I would almost put money on it if these people weren’t so outrageously unpredictable.

  2. One of Donald Trump’s complaints about Canada is our inadequate military spending. Apparently we have a NATO commitment to spend 2% of our GDP on defense, which we have perennially come short on.

    If Donald Trump does, in fact, impose a 25% tariff on Canadian goods, it will have a significant effect on Canada’s GDP. I wonder if it could reduce it enough that our current level of defense spending would become 2% of our GDP, meaning we have met our NATO commitment without increasing our defense spending.

    1. I’ve been thinking the same thing. Plus, with the Canadian dolllar’s devaluation as a consequence of the tariffs, our exports might still be cheaper than the competition, domestic or foreign.

  3. Its probably not a good sign about the current leadership of Alberta that we are looking back a bit fondly at Kenney. As for MacDonald, I think he also knew well squabbling petty provincial politicians in his times. Unfortunately it seems they can’t figure out unity and standing up for Canada is what is needed now. Seeing this would probably lead him to have another drink. Canada often has been and remains an exasperating country to govern.

    The incoming US President is full of bluster and it is best not to take him too literally. I doubt he really wants US gas prices to increase by 10% or 25% because of tarrifs. He just won an election because US voters were frustrated by high prices, so his half baked ideas about increasing tariffs are very counter productive, which he may come to realize or maybe already understands.

    It is unfortunate that Team Canada has turned into a herd of cats headed off madly in all directions. But the current Federal government may not be around that much longer. It will be the next one and us who will have to live with the consequences. This is something for Polievre to think about in considering encouraging disunity now for short term political gain.

  4. Canadian Conservative Premiers prostrating themselves before The Great Orange Cheeto is hilariously funny except for the fact that Smith and Ford are leading in every poll. We can conclude from this that conservative voters want their conservative governments bowing down before Trump. H.L. Mencken hit the nail on the head when he said democracy is the theory that common people know what they want and deserve to get it good and hard.

    1. Maybe you’re reading different polls than I am but Dani’s poll numbers are ASS. She has high approval ratings among a thin sliver of the province that are in JKs own words; lunatics.

      I’m willing to bet their internal numbers are just as bad. You don’t flood the zone like they are if you’ve got long term goals of holding on to power.

      1. I’m waiting for the next poll from Janet Brown (the only Alberta pollster I trust to be unbiased). I suspect it will confirm Smith has taken a hit.

        Since I am in Edmonton, there is an inherent bias against Smith; but I am seeing the same or greater level of general contempt for her that Kenney engendered.

  5. Mel Watkins? The Waffle faction? Military Keynesianism? Now you’re talking smack! One thing’s for sure. Trump hasn’t even taken office yet and already everybody’s exhausted.

    1. Ronmac:

      Mine eyes have seen the glory of the coming of the Lord;
      He is trampling out the vintage where the grapes of wrath are stored;
      He hath loosed the fateful lightning of His terrible swift sword:
      His truth is marching on.

      DJC

    2. Please. The only thing the Americans even make anymore in large numbers is outrageously expensive weapons that happen to perform quite poorly in peer level conflicts. What do you think all the “military aid” (that they have to pay for ) to ukraine is ? Giveaways to weapons manufacturers.

  6. The worst possible thing for Canada right now would be for a MAGA-aligned Conservative to become prime minister and sell us down the river for a song. It would probably be the Log Driver’s Waltz, taking us right back to our roots as hewers of wood and drawers of water, that apparently comes from a giant tap on the Columbia River.

    We need to find new markets for our exports and begin forging trade partnerships with other countries within the next two months. This is a Herculean task. Our unstable southern neighbor is neither benign nor friendly. It will crash our economy and possibly its own, without a second thought. Might makes right.

    Danielle Smith is like a gnat buzzing around the rotting spoils. She would be overjoyed to take Alberta down. Wasn’t becoming an American state the goal of the UCP ever since they crafted their little Sovereignty Act of Horrors?

    None of what Trump has up his sleeve will be good for Alberta or Canada. We stand to lose everything: Great Depression 2.0 incoming. Alberta’s premier can’t wait for the destruction and dismantling to begin. This is what Albertans voted for. The leopards will eat their faces, the faces of their children and grandchildren, and consume the savannah. Best not to spend wildly today on this U.S. day of worship for consumerism. Darn those holes in your socks. Reuse that tea bag. It is truly a Black Friday. Save the cash for flour, lard and corn grits. Doom incoming.

    1. ABS: Diversify markets? On the positive side, Trudeau did build the TMX pipeline on the theory pushed by Edmonton, this would raise oil prices. Too bad China’s demand for oil is slowly falling with electrification of its domestic transportation system. On the negative side, Harper destroyed the Canadian Wheat Board (CWB) and closed its offices in Beijing. We had been selling to China since the 1950s, almost always for premium prices and often over the objections of the Yanks. A few years after the killing of the CWB, Trudeau the Younger crapped all over the Chinese when they wanted cleaner canola, so those premium prices are gone as well. It is time to realize the idea of all encompassing free trade agreements are not in our national interest. Time for bilateral deals nation to nation – something the oil-soaked trendies have yet to get. The late great auto-pact is a good example.

      1. Kang: Good points here. One would think that Conservatives, of all people, would get the well-understood connection between supply and demand. Yet during Premier Kenney’s short, unhappy tenure here, we were constantly lectured on how by selling more crude via pipeline would somehow magically raise the price. In the last few days I heard a grain farmer from southern Alberta complaining on the CBC about how the Trump tariffs were going to immisurate him and therefore dairy farmers in Quebec should be forced to give up supply management as that would obviously placate Mr. Trump. Too bad the Wheat Board isn’t still around, I thought to myself as I drove on. That farmer, I imagine, though, was one of the ones who fought hard to eliminate the CWB. Ah well, live by the free market, die by the free market. DJC

      2. I was thinking Canada, not Alberta, when I spoke of new markets for exports. Alberta has a one-track natural resources mind: oil, gas, coal — not far from the 19th century hewers of wood and drawers of water. Water is also for sale, if those irrigation expansion plans mean what I think they mean. Wind- and solar- generated electricity is even a step too far here in diagonal land.

        Agreed. Bilateral agreements, not meaningless free trade agreements with unstable powers who renege on a whim at the first opportunity. Those days are over.

  7. As always thank you for that, DC. Mel Watkins was one of my economics professors at the U of T more than half a century ago. When Waffle was influential I recall a campaign button depicting Uncle Sam drinking the great lakes through a straw, with the caption “Nixon Drinks Canada Dry”. We should be getting ready to apply that to Trump. Having lived in Alberta for more than 40 years, I have acquired a distaste for the tariffs that kept Toronto’s Massey-Ferguson profitable while its inflated prices were paid by farmers facing world markets for their grain. But I take your point. As the president of Mexico observed a few days ago, Canada may have no alternative but to impose countervailing tariffs on US products. That planning should be happening now.

  8. Geez, where are the happy voices? David: please swear that effective January 1st you will have a fun, lighthearted column once a week…even if you have to lie.

  9. (Securing which, as someone said today, you’d think would be an American job, not ours.)

    If someone wants to leave Canada, that is their affair not the Canadian Goverment’s concern. .

    On the other hand, I am worried (horrified?) about the number of refugees we will be seeing if Trump begins his deportation plan.

    People talk about oil and gas. Québec exports a lot of electricity to the North-Eastern USA. Nothing like having your electric bill jump by 25% in February.

    1. Actually, jrkrideau, I suppose you could argue it is the Canadian Government’s concern, the judicial branch’s at least. After all, as our Constitutionally entrenched Charter of Rights and Freedoms says, quite clearly, “6. (1) Every citizen of Canada has the right to enter, remain in and leave Canada.” If Ms. Smith proposes to set up a vigilante border patrol to violate the constitutional rights of Canadian citizens, I would think that quite properly would be the national government’s concern. DJC

      1. @djc
        I don’t *think* even Smith is stupid enough to violate citizen’s constitutional rights. Hypothetically, if she were, it would be horse race between Lt. Governor, Prime Minister, and Supreme Court to deal with her. Would depend on how egregious of a transgression.

  10. There are lots of opinions on exactly what Trump is doing with his blather about tariffs. In my opinion, the most likely of the explanations is “It’s Trump staking out a bargaining (i.e., ‘bullying’) position.”

    Bullying over what? Well, he named immigration and fentanyl. CBC’s At Issue panel had some highly appropriate comments about Canadian so-called leaders’ cross-grained, contradictory—and frankly, cowardly—response to Trump’s threats.
    https://www.cbc.ca/player/play/video/9.6578168

    What to do about Trump? Well, President Claudia Sheinbaum of Mexico has shown a better way:
    https://www.cbc.ca/news/world/mexico-president-response-trump-tariff-threats-1.7395333

    Not gonna happen here, despite the “unified” front presented by the Premiers after their meeting with the PM.

    What would I do? Well, if I were King Michael the First of Canaduh, I’d tell Trump that if he slapped us with a 25%–or even 15%–tariff, I’d put a matching export tax on energy exports to America. Yup. You read that right. “Listen, Donnie, if you damage my country, I’m gonna damage yours back—and blame you for it. Publicly. Until you change your mind.”

    Fantasy thinking? Naw, it’s a bargaining position. Trump only respects people who are stronger than he is. The way to deal with a self-important fool is to punch him in the nose. Then you can lead him by it.

    No politician in Canada has the guts to try it.

  11. @Mike
    My early 20th century history is spotty, but weren’t tariff wars a contributing factor to the Great Depression?

    As the Donvict being a bully (plus many things, generally all worse) yes, he is. And the standard adage for dealing with a bully works, but I would go even further: find something that is particular to him personally. For example, if he (or his family) owns anyting in Canada, expropriate it. Find a means to damage his “brand” and you have leverage on his psyche, which he can not sublimate to his job.

    Now I haven’t read his book (damn if I’ll give him a dime), but doesn’t he say something like “if you can’t walk away from a deal, you are at disadvantage”? Perhaps it’s time to give notice Canada is leaving the CUSMA.

    As for Canadian premiers – their authority begins and ends at provincial borders. Provincial sound and fury signifies almost nothing in international economics. Premiers have, at best, second order effect via domestic politic pressure. Given our minority federal government & current polls, they are enjoying more influence than normal, but the prime minister still holds the pen.

  12. This must be the part where Queen Danielle is wondering when she wakes up from her TBA fever dream.

    Of course, Smith could just go all MAGA and declare that Canada is DEAD, and new Canada must emerge. Alberta has pretensions of being the only true Canada, but whatever.

    As for John A., I remember his motivation was, primarily, to serve the British Empire, build a national railway, and be as fervently ant-American as possible. These days, I’m not even sure MacDonald would get must of a hearing in the likes of Skippy Pollivere or Smith.

  13. I watched a video yesterday of Pierre Poilievre convincing a group of men that Trudeau wants to confiscate their hunting rifles and shotguns, yet the lawyers and police officers that I hunt with know it’s a lie. Trudeau wants to eliminate Assault Rifles and make Handguns a lot harder to obtain and has no intention of confiscating any guns that can be legally used for hunting. There are no better liars than Reformers and they have no problem getting easy to fool seniors to believe them do they?

  14. In the meantime, while Junior is off in Florida grovelling to the KFC glutton this weekend, Marlaina is jumping up and down yelling, “Hey Donald, pick me, pick me! You are my hero and I’m going to your inauguration too!” while she offers to use Alberta tax resources to defend the American border from Canadians going to shop with their 71¢ dollars at the mall in Sweetgrass. If an Alberta-side American border patrol is something she thinks we should take responsibility for, then I’m also waiting for her to ask the Saskatchewan and Montana governments to guard our borders from rats of the four legged type. You know how that would turn out.

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