We begin this year as we ended 2024 with considerable confusion about US economic policy and the knock-on effect it will have in Canada. At the same time, some of the issues that have been raised in the US election and amplified in the lead-up to the inauguration are finally here. As some of these election platforms become government policy and priorities, some of the normal procedures take hold.
It remains uncertain what the US government will do regarding tariffs on Canadian and Mexican products, and it is unwise to read the tea leaves every day. This industry and every other has warned the Canadian government about the impact of such tariffs. Any action of this sort by the US would be met with equivalent tariffs on US products. At the end of the day, it's very unlikely that Canada will benefit from any of this and for that reason, our position is that Canada must do everything it can to prevent the US from imposing across-the-board tariffs.
The only way this will be accomplished is if the Canadian government can demonstrate that such actions would be of no benefit to the United States. We are encouraged that one industry association in the US has warned that duties on Canada and Mexico “would undermine a vibrant coproduction chain, which is vital to the U.S. textile industry and supports thousands of jobs here and in Mexico and Canada”. We agree.
At this stage, we encourage everyone with an interest in the trade agenda to read the America First Trade Policy - a sweeping policy declaration, that puts in plain language what this administration hopes to accomplish. It also manifests the new administration's view that opening up so many different issues will give it leverage with many trade partners. Buckle Up.