Welcome to The Logoff: President Donald Trump announced massive new tariffs on Canada, which are set to begin in 30 days. Now negotiators from both countries are scrambling to see if they can be avoided.
Previously, these products had been covered under the USMCA, the trade deal that Trump negotiated with Canada and Mexico in his first term to replace NAFTA. But on July 1, the agreement expired and the United States refused to renew it.
Why is Trump doing this? The White House claimed three key grievances: Canadian duties and restrictions on American alcohol, dairy products, and automobiles. Alcohol appears to be a particular irritant: All but two Canadian provinces have smoked American liquor from state liquor stores, and even some Democrats have complained.
However, the alcohol boycott began as retaliation for the trade war that Trump started in early 2025, when he was repeatedly talking about Canada becoming the 51st state of the United States. Like his efforts to reopen the Strait of Hormuz, Trump is trying to fix a problem he caused in the first place.
Interestingly, the tariffs will not go into effect for 30 days. This suggests that they may be more of a bad policy initiative than a negotiating tactic.
What a takeaway: Trump’s fascination with life and economic warfare has survived a rebuke from the Supreme Court, and he continues to single out Canada as a special target of his ire. It is not known why; both countries have suffered from the breakdown of relations between the two countries.
But whatever the motivation, the bottom line is clear: Frosty relations in the north are a permanent feature of the Trump presidency.
