Tariffs are hurting U.S. credibility, Canadian consul tells Detroit audience

The Trump administration’s tariffs on Canada and Mexico are not only straining the U.S. relationship with its most important trading partners, they are also undermining its credibility ahead of planned United States-Mexico-Canada Agreement (USMCA) negotiations, said Colin Bird, consul general of Canada in Detroit.

Nowhere is the impact of 25% tariffs on those countries more concerning than in Michigan, which counts Canada as its largest trading partner and whose signature automotive industry has deep ties to Mexico as well. As such, trade war continues to be the central concern for business leaders and government officials in the state.

“What is the value of treaty commitments entered into by the U.S.?” Bird said at a Detroit Regional Chamber panel event Monday. “For the last two months, we have seen a systematic ignoring of treaty obligations. That’s a problem for its credibility negotiating with the world.”

The Canadian consul spoke with U.S. Sen. Elissa Slotkin and chamber CEO Sandy Baruah about the importance of the U.S.-Canada relationship, rooted in more than a century of friendly relations and free trade. Bird helped negotiate the original USMCA deal, which replaced the North American Free Trade Agreement. The USMCA, signed by Trump and implemented in 2020, is due for a review next year.

“Are the commitments that we negotiate going to be respected?” Bird said.

Michigan businesses are grappling with 25% aluminum and steel tariffs, imposed last week, and 25% tariffs on Canada and Mexico set to be imposed across the board April 2. The auto sector and others were granted a one-month reprieve on USMCA compliant imports. Economists and executives have said the trade taxes will result in higher prices for consumers.

In Canada, which does $80 billion of trade annually with Michigan, Trump’s tariffs and suggestion of annexing the country have led to public disdain, Bird added.

“It has unified and fortified the Canadian population to stand up for its economic interests in a way I haven’t seen before,” he said.

Slotkin, a former CIA analyst, said attacking free trade partners in North America serves to weaken American manufacturing competitiveness and give China yet another leg up. Trump’s tariff strategy – or the “on again, off again hokey pokey dance,” as the senator referred to it – will hurt Michigan and its residents.

“We are going to be paying more for everything in our life, and we are risking a self-inflicted recession,” Slotkin said.

Baruah agreed and added that the business community might be more sympathetic if the end game was clear.

“What we’re hearing is the initial excitement about the new administration was genuine,” Baruah said. “Now what we’re hearing is it’s beginning to look a lot like COVID in the sense that business leaders are really struggling with a level of uncertainty they were not expecting.”

As the trade war paralyzes auto companies, casts uncertainty over farmers and small business owners, and threatens longstanding international relationships, Michiganders brace for more potential fall out as April 2 approaches.

“Canadians still love Americans,” Bird said. “I really worry about the moment that we’re in.”

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