While many Canadians last week were focused on the Olympic games, and in particular the heartbreaking losses in the Gold Medal game for both our men’s and women’s hockey teams, political watchers were also watching news from the United States capital. While perhaps not as exciting as the action on the Olympic ice, the long-awaited ruling by the Supreme Court of the United States (SCOTUS) regarding many of the tariffs the Trump Administration has levied on Canada and other countries was released.
That ruling, in a 6-3 decision, confirmed what most observers had long believed. The court, including the majority of justices appointed by Republican Presidents, found the set of tariffs issued under the U.S. International Emergency Economic Powers Act (IEEPA) were illegal. This was largely based on the principle that in the United States, Congress has power over taxation, and tariffs are a tax paid by those who purchase the product on which it is levied.
Despite the ruling, it was no surprise the Trump Administration quickly vowed, and did, use other measures to put new tariffs in place. While most Americans express opposition to the tariff policy, it is clearly one that the current U.S. administration is committed to. So while in the medium and long term the court ruling may have greater impact, in the short term it is less likely much will change in the trade dispute that Canada finds itself in with the United States.
For that reason and many others, it is critically important that Manitoba and Canada remain focused on the things that are more directly in their control. While it is true that the current trade turmoil is as a result of the U.S. governments decision to move away from the historical free trade relationship between our two countries that has been in place for more than 40 years, it is also true that the challenges that Canada is having adjusting to that new reality are the culmination of decisions made by federal governments over that same period of time.
Canada has become overly reliant on one trading partner, the United States. Because of that over reliance, we have not built the infrastructure needed to enable us to get Canadian products and natural resources to other parts of the world easily. That over reliance has also hurt the overall productivity of Canadian manufacturing and production. Political leaders in Canada are now focusing on how to correct these challenges, but it will not happen quickly or easily.
But it is important that it remains the focus of Canada and provinces like Manitoba. Regardless of what is coming as it relates to our trading relationship with the United States, these are challenges that need to be addressed so that we are not as vulnerable to future trade challenges.
In Manitoba, that means that our provincial government needs to be more aggressive when it comes to seeking new trading partners and in working to get Manitoba and Canadian goods to international markets through our northern port.
None of these are quick or easy initiatives and Canadians are right to wonder why they have not been done before. But looking backward will not make the path forward easier. And the best path forward is a clear focus on controlling the things that are within the power of Manitobans and Canadians.
