Is Trump’s tariff pause an ongoing extortion attempt?

Speaking during a media scrum in the Oval Office on Monday, U.S. president Donald Trump provided yet another justification beyond border security for threatening tariffs against Canada and Mexico.

“We have a trade deficit with Canada right now,” he said.

“I look at some of these (trade) deals made and say, who the hell made these deals, they’re so bad.”

The answer to that is simple. He did. Crowing about the signing of the U.S.-Mexico-Canada Agreement (USMCA) at a press conference during his first administration, he had this to say.

“For the first time in American history we have replaced a disastrous trade deal (North American Free Trade Agreement) that rewarded outsourcing with a truly fair and reciprocal trade deal that will keep jobs, wealth and growth right here in America.”

It looks like the border security excuse may simply be what the president needed to invoke presidential authorization to impose the tariff and usurp Congress’s authority over that area of governance.

The fact that Canada and Mexico offered to work with the U.S. to address those stated border concerns without any change in the president’s apparent determination to impose tariffs seems to lend ample weight to that assertion. And it’s almost certainly something that could have been worked out without threats of trade disruption.

Perhaps the most notable statement coming from Trump early on was he intends to use “economic force” to coerce Canada into becoming the 51st U.S. state.

Using force of any kind to acquire new territory is akin to an act of outright war.

On Monday afternoon, an 11th hour agreement resulted in a 30 day delay on implementation of new tariffs. However, a final decision will need to be made eventually to abandon tariffs or apply them.

Speaking on Sirius XM radio, David L. Cohen, former U.S. ambassador to Canada under the Biden administration said he has been hearing many concerns from elected U.S. officials over this affair.

“I heard from multiple governors over the past month or so, ‘can you believe what he (Trump) is doing. Does he have any idea of the implications on us, our businesses and our states.’ ”

The threats have roiled the stock market and created business uncertainty in both Canada and the United States.

Even if tariffs are not eventually imposed, USMCA comes up for renegotiation in 2026. Trump will still be in office then, barring any unforeseen circumstance. So what will the value of any new agreement reached be, given Trump’s unwillingness to live up to the current one?

And he has already threatened Europe and the United Kingdom with tariffs as well. Would a new agreement with them be respected any better?

Speaking on Britain’s LBC online podcast, Ralph Goodale, Canada’s high commissioner to the U.K. in London, issued a warning.

“We would say to the U.K. or the EU, don’t be complacent. Canada is sort of the canary in the coal mine. This won’t be the last attack on sovereignty. You could be next.

“The extent you could rely upon a deal struck now? After all, the trading arrangement Mr. Trump is now criticizing between the U.S., Canada and Mexico is an agreement he himself negotiated the last time he was president. Now, it’s the worst thing he’s ever seen, and he’s the author of it.

“I would say to the U.K. and others, do your very best, but be wary. Have your eyes wide open. Don’t be complacent about who or what you’re dealing with.”

Tags: U.S.-Mexico-Canada Agreement, USMCA, Mexico, tariffs, Canada, U.S.