Premier Doug Ford (Ontario) did not have to call a snap election, but he did. And he won the election on February 27, 2025, albeit with a slightly lesser majority. This progressive-conservative leader could have stayed in power until June 2026. Politicians do not much like being thrown out of office, which every election risks. So, why the rush? Generally, it’s because polls are in their favor at the time, and they fear their popularity is headed south, so it’s a case of—“Let’s get a new term locked in now, shall we?” Of course, that’s never the stated reason.
Of course, Ontario cannot all on its own, place a counter-tariff on US goods or services.
What the “governor” of the most populous of Canada’s ten provinces actually stated is: “With a strong mandate, we will be able to fight with Donald Trump to make sure we stop the tariffs.” He continued: “You better pray we get elected.” Of course, Ontario cannot all on its own, place a counter-tariff on US goods or services. It cannot do so any more than any one US state can have its own tariff policy. In both countries this is a centralized, not a decentralized, decision. However, the premier of the most heavily populated province in Canada can have an important influence on national policy, so Doug Ford is hardly just blowing smoke.
Nor is it just Ontario where this is a contentious issue in Canada. The other nine provinces are also up in arms, so to speak, about this threat of cutting off trade between the two important trading partners. So far, however, the threat emanating from south of the border of the Great White North (that color is for snow, not people) is just that, a threat. Not one single raise in tax rates on American imports from its northern neighbor has so far been instituted. But one may object that Trump is early in his second term. But it cannot be denied that Trump has been very active on other fronts: Israel, pardons, DEI, Ukraine, etc., and has raised the issue of tariffs repeatedly.
What is the teaching of Economics 101 on this matter? It is that voluntary trade necessarily benefits both parties.
What is the teaching of Economics 101 on this matter? It is that voluntary trade necessarily benefits both parties, at least ex ante, and almost always ex post as well, assuming no fraud. Otherwise, it would scarcely exist.
Tariffs are an impediment to trades, between capitalist acts between consenting adults, in the words of philosopher Robert Nozick. Basic economics then, teaches that tariffs reduce prosperity. Premier Ford thus has the blessing of all those who wish reduce poverty and increase wealth, in his efforts to combat Mr. Trump’s tariff proposal of 25% and perhaps even more.
I have a simply horrid negative balance of trade with McDonalds, Walmart, Walgreens, Toyota and others of that ilk.
The president of the United States complains, bitterly, about the negative balance of trade Canada imposes upon his country. Stuff and nonsense. I have a simply horrid negative balance of trade with McDonalds, Walmart, Walgreens, Toyota and others of that ilk. On the other hand I have a tremendously positive balance of trade with my employer. This whole idea that we should worry about balances of trade is of course all hogwash. They balance out at the end of the day.
What is really going on in the head of the present president of the United States with these tariff threats, not only against longtime ally, Canada, but also, just today, against adversary, Russia? I’m not sure that even he really knows, but we can hazard a few guesses. One, he wants to throw his weight around, for the good as he sees it, and thinks, quite rightly in virtually all cases, that tariffs are a better means than bombing. Two, he really is miffed at a so called negative balance of trade with Canada, and feels put upon by his northern neighbor. Three, he is concerned about illegal immigration creeping in from the north, not just from the south, and wishes to put a crimp on this relatively minor invasion. Canada could do worse than immediately plug these holes, if it wishes to placate Trump on this issue. Four, the Donald wishes to urge countries to increase their defense budget from the present less than 2% in many cases, and is using the tariff threat as a stick to improve matters from this perspective of his.
This might make Donald Trump come to his senses, particularly if Canada takes the lead on this.
Now that Doug Ford has been re-elected, will Canada threaten to promote retaliatory tariffs against the US if that country implements this foolish plan? This might make Donald Trump come to his senses, particularly if Canada takes the lead on this, and other countries victimized by the US follow suit. World-wide specialization and division of labor might then be made Great Again.
Pegs:
Snap election:
https://www.google.com/search?client=firefox-b-1-d&q=ford+calls+election+in+ONtario
“Canada is not for sale” hat:
Source of Ford quotes: https://www.msn.com/en-ca/money/topstories/you-better-pray-we-get-elected-doug-ford-says-he-will-call-snap-ontario-election/ar-AA1xOlpi