Donald Trump’s tariffs aren’t just a negotiation tool. This is economic warfare aimed at reshaping global trade.
But don’t be fooled. Trump literally has an entire strategy laid out in black and white.
So how does Trump rationalize the trade threats he has made? Enter Stephen Miran, the man who was nominated in December to chair Trump’s Council of Economic Advisers.
Currently a senior strategist at Hudson Bay Capital Management LP and a fellow at the Manhattan Institute in New York City, Miran holds a PhD in economics from Harvard University. Miran’s thesis advisor was Martin Feldstein, an eminent American economist who chaired the CEA during the Reagan administration.
In an essay that was published in November titled, ‘A user’s guide to restructuring the Global Trading System,’ Miran laid out several tariff scenarios that could be applied under a second Trump administration, and made the case for why they could still be effective despite some potential negative impacts.
Miran spells it out quite clearly. The U.S. thinks it has been “too generous” for decades, letting other countries enjoy easy access to its market while they put up barriers to American businesses. They believe the system has hollowed out American manufacturing and overvalued the U.S. dollar, making it harder for them to compete globally. So this is Trump’s ultimate plan. He’s taking this list, sorting the allies from the adversaries, and strategically wielding tariffs to reshape global trade. The enemies will be isolated through economic pressure and other means. As for his so-called allie-tariffs will be used as leverage to crack open their protectionist policies and force open their markets to American business.
This isn’t just about trade, it’s about constructing a new global economic order.
Canada is at the front of the line. We’ve had decades of privileged access to the U.S. market, and now, Trump is saying, “That was a privilege, not a right.”
So what’s the plan, Canada? Well, let’s put the border solutions aside, because we know they’re only part of the short-term equation. When these tariffs return, the federal Liberal Party wants to go toe-to-toe with Trump, a dollar-for-dollar tariff war, which he’s promised will only result in more tariffs.
If we’re being logical about this, he’s the elephant and we’re the ant. We won’t survive this fight.
As for how they want to bolster the economy? Leaders like Prime Minister Justin Trudeau and even Ontario Premier Doug Ford are spouting off about ‘pandemic-style bailouts.’ Literally the last thing we need to do is continue printing money and running deficits that will take generations to fix.
So, how do we weather the storm? Literally, the last thing we need to do is continue printing money—running deficits will decimate us. We need leadership that will stand up for Canadians, fight for our industries, leverage our natural resources, diversify our trading partners, invigorate our military, and create jobs, jobs, jobs, jobs. Programs to build stronger infrastructure should be our main focus to meet these challenges.
