Warning against the collateral damage of tariff threats

Critics of Trump’s approach warn that the tariff threat is already inflicting real economic harm, even without being enacted. The uncertainty is freezing investment, disrupting supply chains, and hurting Canadian businesses that have little control over trade policy. Trade lawyers report that clients are incurring costs to prepare for potential tariffs, such as legal fees and supply chain adjustments, with no guarantee of relief. Small businesses are hit hardest because they cannot easily relocate or absorb added costs. The threat also strains diplomatic relations, making future cooperation more difficult. Economists caution that the tactic risks a downward spiral: if Canada retaliates, both economies lose. The Canadian government faces pressure to respond, but any countermeasures could escalate further. Rather than creating leverage, the threat may erode trust and deter the very investment both countries need. For many, the costs of the threat already outweigh any potential negotiating gains.