Eric Ham: Canada not out of the woods on U.S. tariffs

U.S. President Donald Trump arrives at the White House in Marine One on April 6, 2025. (Photo: Manuel Bals Seneta, Associated Press)

Eric Hamm is a Washington-based political analyst, best-selling author and former U.S. congressional staffer who writes analysis for CTV News.

Trump’s so-called “Freedom Day” exempted Canada from the hefty tariffs imposed on many countries. That gave Canadian officials a sigh of relief!

Canada’s exclusion from the tariff attack and a positive response to a recent call between Trump and Prime Minister Mark Carney raised hopes that America’s largest trading partner would be spared the financial and economic onslaught.

But Canadians’ joy was short-lived, as the U.S. president has once again threatened to impose new tariffs on imported goods, including Canadian lumber.

Trade war back in focus

The brief lull in tensions led some in Canada to think Trump might be turning his attention elsewhere. But now he has once again turned the heat on Canada, ignoring the huge losses to consumers and domestic markets — as if his ultimate goal is to turn Canada into a U.S. state!

Since the announcement of the nationwide tariffs, U.S. markets have lost more than $6 trillion in value. Investment bank JPMorgan has warned that the measures could tip the U.S. and the world into a global recession.

With consumer spending and confidence down and the S&P 500 on the verge of a bear market, Trump is pushing ahead with his punitive policies.

Electoral challenge and economic pressure

Ahead of Canada’s federal election, the trade crisis is back in the spotlight. Prime Minister Carney, whose lead over Conservative rival Pierre Poulio has narrowed, must prepare to confront Washington’s trade threats — threats that could plunge Canada into a deeper recession — while maintaining his political power.

Trump, ignoring global protests, plummeting markets and declining popularity, is continuing to impose maximum pressure on a longtime U.S. ally. He seems determined to force Canada’s leaders to capitulate.

If Canada thought “Independence Day” meant the end of threats, it now realizes how naive that was.

Meanwhile, Canada’s federal party leaders are struggling to rally support from the vulnerable amid the market crash and the negative impact of the trade war.

Trump’s relentless attack

The pain and anxiety are being felt across Canada, especially in the economic sectors. Canadian politicians are struggling to respond, but Trump’s relentless attacks have challenged their resolve and that of voters.

As the world reels from Trump’s destructive policies, countries like China have responded quickly with retaliatory tariffs. Billionaire investors including Trump ally Bill Ackman have also criticized the White House’s policies, and the European Union has sent a conciliatory signal by offering to negotiate.

Canadian leaders are scrambling to come up with solutions to help the people, retirees and workers affected. Now is the time to strike back or reach a deal.

With Trump and his Republican Party at their weakest political position, this may be a golden opportunity for Canada. Candidates should seize the opportunity.

If anyone in Canada thought global tariffs meant the end of the crisis for the country, they now understand the truth.

The world superpower is now using its influence to disrupt markets and the global economy — and it could be the beginning of disastrous consequences for its northern neighbor if Canadian leaders miscalculate and underestimate the severity of Trump’s desire to inflict harm.

This misguided and dangerous policy has gone unchallenged — yet another testament to the unbridled power of an authoritarian president bent on domination at all costs.

It’s clear that Canada’s fleeting happiness was a mirage, and now the country, like the markets and the global economy, is facing a harsh reality.

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