Trump's 'reckless' trade war puts North America 'last,' chamber of commerce says

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The Ontario Chamber of Commerce slammed Donald Trump’s “reckless, unprovoked trade war” with Canada, while calling on cooler heads to prevail in an economic battle that it said will hurt consumers and businesses on both sides of the border.

The U.S. president’s sweeping 25% tariff on all Canadian and Mexican goods — excluding a smaller 10% tariff on Canadian energy exports — came into effect Tuesday with Prime Minister Justin Trudeau responding with retaliatory 25% tariffs on about $30 billion worth of U.S. exports and more planned in the coming weeks.

“The U.S. president’s reckless, unprovoked trade war against Canada will lower the standard of living for every American and every Canadian — ignoring the will of the American people, the advice of the U.S. business community and the trade agreement he negotiated and signed,” the chamber said, referring to the Canada-U.S.-Mexico Agreement.

“Unless the U.S. pulls back, it will mean higher prices, lost jobs and investment and struggling businesses on both sides of the border. It’s not putting America first; it’s more likely to put North America last.”

The U.S. insists the tariffs are in response to fentanyl trafficking at their borders with Canada and Mexico with Commerce Secretary Howard Lutnick describing the trade war as a “drug war” instead during an interview with CNBC.

Canada responded to that complaint by appointing a “fentanyl czar” and announcing $1.3 billion in additional spending to protect the border, among other measures. That despite U.S. Customs and Border Patrol data showing that only a small amount of fentanyl crosses illegally into the U.S. from Canada, according to The Canadian Press.

In addition to the federal tariffs, provinces have joined the fight as well with Ontario removing American alcohol brands from LCBO shelves and tearing up a satellite internet deal with Elon Musk’s Starlink firm, while also mulling a 25% surcharge on energy exports to the U.S. or even cancelling them altogether.

The chamber offered its support for a “firm Canadian response” to the American tariffs, but also urged further dialogue with the U.S. and for governments of all levels to take “immediate and long-term steps to enhance Canada’s resilience.

“This is a time to prioritize competitiveness over complacency, diversification over dependence and resilience over resistance to change,” the chamber said. “We are encouraged by the unity between business and political leaders. The Ontario chamber will continue to convene, mobilize and empower businesses and chambers at this critical time and to work with our government partners to turn talk into action.”

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