Video summary
The video discusses the escalating tensions between the United States and Canada, framing them as an unnecessary tariff war that threatens a historic alliance. The conflict began with insults toward Canadian citizens, including the suggestion that Canada could become the 51st state of the US, followed by threats and the imposition of high tariffs on Canadian goods. These actions culminated in a significant confrontation after Canadian Prime Minister Mark Carney's speech at Davos, which he viewed as a sign that the US was no longer a reliable partner. In response, Donald Trump imposed a 50% tariff on $20 billion worth of Canadian imports, prompting Carney to walk out of negotiations. The situation has now reached a point where Canada is preparing to impose reciprocal dollar-for-dollar tariffs starting September 8th, effectively ending the current trade relationship under these terms.
The panelists argue that these tariffs represent a massive tax on American consumers and will cause long-lasting damage to both nations' economies and diplomatic relations. They highlight the extreme integration of the two countries through shared supply chains, military cooperation like NORAD, and deep cultural ties, making the current hostility particularly destructive. A key point of discussion is the motivation behind Trump's actions, with some suggesting it serves as a distraction from other issues or follows a pattern of behavior taught by his mentor Roy Cohn to manipulate public perception. The instability caused by these policies has already triggered significant international concern, exemplified by the Netherlands moving its gold reserves from both the US and Canada to the UK due to fears of economic and political volatility in North America.
Furthermore, the discussion explores the potential consequences for Canada's global standing and internal unity. Despite the pressure, there is a strong sense of national resolve in Canada, with high public support for Prime Minister Carney's stance against being bullied. The US administration's rhetoric has also fueled separatist sentiments within Canada, particularly in provinces like Quebec and Alberta, where discussions about greater autonomy or even constitutional amendments are gaining traction. Experts warn that if Canada cannot secure a better deal from the US, it will be forced to diversify its trade relationships with Europe, China, and other global partners, potentially locking itself into new long-term agreements that exclude the United States. This shift could fundamentally alter the world trade order and leave the US isolated from its most important neighbor.
In conclusion, the panelists express deep concern that the current trajectory under Trump's leadership is unsustainable and destructive to both nations' prosperity and security. They note that Trump has a history of failing to make lasting deals and instead prioritizing short-term political gains at the expense of stable international relations. The erosion of trust between the US and Canada poses risks not only to economic interests but also to military intelligence sharing and regional defense cooperation. While there is hope that voters in the upcoming midterms might push for a change in direction, the panelists caution that the damage done may be irreversible within their lifetimes. Ultimately, the consensus is that the current path leads to chaos and that both countries would benefit from returning to a framework of mutual respect and reliable trade partnerships.
Read the full video transcript
[music]
Aloha. Welcome to American Issues Take
One. I'm Tim Appachel, your host, and
today's title is tariff war with Canada,
unnecessary fight with US friend and
neighbor. My co-host is Jay Fidel, CEO
of ThinkTech Hawaii. David Larson, law
professor at Mitchen Hamlin School of
Law. Chuck Crumpton, mediator
extraordinaire for decades, and Ben
Davis, law professor at University of
Toledo. Welcome one and all. You know,
it all started with insults to the
Canadian people that Canada would become
the 51st state of the United States.
Then after that, threats of high
percentage tariffs were imposed on
Canada. Those tariffs were negotiated
down. And then to follow up, uh, not
long ago, Mark Carney, prime minister of
Canada, gave his famous Davos speech.
Soon after that Davos speech, Donald
Trump imposed a 50% tariff on $20
billion worth of goods and imports uh on
Canada. Mark Carney said that was a a
bridge too far and he walked out of the
negotiations. We now have a situation
where Canada will soon as of September
the 8th match dollar fordoll tariffs
against the United States and that uh
will take place rather shortly. Then
Donald Trump's executive order to rename
Lake Ontario to Lake USA. And that's
where we are today. A tariff war with
our friend, neighbor, ally, and second
largest trading partner. further adding
insults to injury.
These tariffs will represent a tax to
the American people. I'm going to go to
you, Jay, right off the bat, and that is
how closely integrated are we to Canada,
be it our supply chain, our diplomatic
relationships, our military uh
relationships.
How does this impact our relationship
with Canada given these recent tariffs
and not to mention insults to our
Canadian brothers? We are very close. We
have been very close. We've been allies
in couple of world wars and more. Um we
have been trading and exchanging people
and businesses forever. Um there's no
country where we have been closer to and
which makes it all the more difficult to
understand why in the world Trump would
do this to Canada.
Canada is is so close to us that the
[clears throat] damage that he has done
is really quite extraordinary and you
have to take a deep breath and but Mark
Carney does that. He takes a deep breath
and he figures out what to do and the
people of Canada are behind him. But the
damage, okay, that Trump has done is
longlasting
and it's just part of Trump's
destruction of the world order and
destruction of relations with our
friends and this is really our best
friend. So the destruction is enormous
and probably unreaptable.
So that's what I would start with. Tim,
>> let me follow up with this. You had
mentioned um the motivation for Donald
Trump to do this. You know, for the last
10 years, we've been saying many things
that Donald Trump does is a matter of
distraction uh to get the public's
attention off of a particular issue.
Now, the obvious issue would be the
failing war with Iran. But what if it
was something different? What if it was
something like um the the intense media
focus on Natalie Hart and and her her
seemingly dysfunctional closeness to
Donald Trump. Uh is this a distraction
or is this a a planned strategy? There
was a time when I tried to speculate
what why he did things, but I I now I
only say he's interested in destroying
everything in his past and outside of
his past. Um so yes it's probably a
distraction uh distracting us from
various crazy things that he has been
doing um you know to manipulate the
press and one of the very interesting
things is a a series of discussions on
the the court of history on YouTube with
Sydney Blumenthal
one of his friends who wrote a book
about Roy Cohen and and Roy Cohen was a
mentor for Trump way back. And what you
get by examining this book and that
discussion on YouTube is the notion that
Trump is playing that same MMO now again
the MMO that Roy Conn taught him to play
which included distraction. Okay. So
what we have here is is a replay. What
we have here is a replay of the
apprentice also. So if you look and see
a you know what the reasons are there
are no reasons and b you know maybe it's
to increase his own power um but we
don't know that and c um it is
destructive in every in every bloody
way. So I guess I guess my answer to the
question is we know the mentoring
elements that make him what he does
today. Um, but we don't know where he's
going with it. We We only know that he's
unhinged and a loose cannon and Canada
has somehow got to be in his destructive
path. There's no good reason for
attacking Canada that never was. But
he's using Canada for some bizarre
reason. And I I mean I I just don't know
what it might be because it's just
crazy. And I don't I don't have an
answer for you on this.
>> Well, that is actually a good answer,
right? What you just said. So, thank
you, Jay. Uh, Ben, what do you see as
the most consequential
um what is the consequence of this
strain relationship with Canada, be it
in the form of insults or economic
tariff, a tariff war? Uh, what's your
read on this one, Ben? The first thing
that I would say is uh I just read that
the Netherlands moved 86 tons of gold
from the US and Canada to the UK. So
that sounds pretty significant when the
Dutch decide to take their gold out of
the US and Canada and put it in the UK.
I mean the Dutch are the old Dutch
business people are very conservative
business people. So I that's an
immediate to me indication of a view of
the of what is going on here that is or
worry about instability
instability in the United States but
also instability in the nature of the
relationship between the United States
and Canada on the trade front.
>> Let me just jump in real quick on that
one point. you know, it was um Mark
Carney's Davos speech that basically
indicated that the United States was no
longer a reliable partner. Do you think
there's any correlation to the Davos
speech
not long ago and the recent form of
tariffs of 50% on $20 billion? Is there
a tit fort relationship there?
>> I think absolutely. Um uh because uh I I
think uh the way that uh Trump talks
about Canada as being the most difficult
people to deal with, you know, that's
kind of implicitly
recognizing
that Carney said very early on, you
know, there's a rupture there. And
second thing is that uh Carney has uh
made it clear that uh you know he's not
going to play the kind of plating role
that a number of other people tried you
know to sort of uh compliment uh Trump
uh his ego and all that stuff um as as
Canada. That 51st state thing I from
what I see up here hit real hard across
Canada. Trust me. Um, so I I was looking
at a couple things recently that maybe
could be helpful from what I can see up
here. Uh, one was that Canadian uh,
exports to the United States, I think,
represent somewhere around 65 to 70% of
Canadian exports. So, it's a huge part
of the Canadian export business. Right.
Trump talks about uh Canada ripping off
the United States for $60 billion. But
if you take out the oil and gas, the
numbers are not really there's actually
a surplus the US has. It's the oil and
gas part coming down. So there's part of
me that keeps thinking that
a lot of this is basically sort of how I
could call it Venezuela North trying to
take control of Canadian uh uh fossil
fuels and and and resources
uh that Trump wants to do to be dominant
across all of the Americas, particularly
in North America. The thing about it is
that the Canadians are not interested in
being a vassal state to the United
States. Uh uh they uh you know they know
us really well in the United States from
a long history and a long border. Okay.
And uh they are willing to take some
pain if it is going to uh if if they
need to. I mean, obviously those tariff
increases have an effect on Canadian
business, but there's a unity across
Canada that I that I see. You know,
there's a little bit of shifting here
and there, but there seems to be a
pretty much a unity to say I think it
was 76% of uh Canadians supported Carney
walking away and in Quebec 85%. Okay.
So, uh, it really is a kind of a unity
is that no, we're we're not going to be
bullied, uh, by the United States. Um,
there's another thing that I was
listening to about Canada is, uh, you
know, there's a lot of investment going
on. There's I think they're going to be
building five or six ice breakers here
in in Quebec. That's, you know,
government project kind of thing. And
there's a lot of investment being done
in Canada. And then there's kind of
systematic review being done of the
pipeline for the kinds of jobs that are
needed, the kinds of people who need to
be trained, the kind of training to get
to them. Going back to post-secary
education, I mean, they like really are
thinking all these things through.
What's going on in the United States?
Anybody thinking coherently? It's this
catches catch can as usual in the United
States in terms of worker training and
all that stuff. So, you know, and I I
don't think there's the kind of unity of
purpose in the United States that there
seems to be up here. So, uh what I would
say is that
there's a lot of uh Canadian will. Um
there's even a former prime minister is
basically saying Canada should not be on
the defensive, it should be on the
offensive. For example, the entire
Arctic up there that the United States
likes to call international waters, the
Canadians just say, "No, those are
territorial waters of Canada.
That's the kind of thing that's going on
up, you know, and in the Arctic level."
So, I think, you know, you have to
understand that there is a resoluteness
to the Canadians. They absolutely have
no interest in being Americans.
And uh now the United States seems to be
trying to do this is the only thing I'll
just end up with this is that you know
by raising tariff barriers the kind of
idea is that it'll be a market inside
the United States with higher prices
right and with those higher prices
there's higher profit margins for
businesses yet and all that stuff so
hopefully everybody in the world will
come and invest inside the United States
um and then of course that means that
since those tariffs are paid by
Americans well who cares about them
right because you know I think it's 10%
of Americans uh consume 50% of what's
consumed in the United States and the
other 90% with the other 50%. Who cares
about anyway? We'll replace them with AI
and robots and all that.
>> One thing that uh that Ben said is very
troubling. I'll tell you what it is. Was
it the Netherlands, Ben? They decided to
pull their gold and put the gold they
hold not only from the US but also from
Canada into the UK. Now, that's it's a
pox on both of your houses. You guys are
quibbling and you you that quibbling
speaks of instability.
And so, we're not going to be part of
any of that. We're going to put the gold
that we hold from both places, both
places into the UK. I mean, they're
really, you know, that's really
destructive to Canada. I mean, I I favor
Canada in all this. I want to see Mark
Carney succeed. I want to see him hold
Canada together. He'd been doing a good
job. on the other hand, you know, his
emissary to Canada has been trying to
ferment unrest, ferment discord and
chaos uh among the the the provinces and
so forth. And now we find that that that
has actually had an effect in Europe on
the Netherlands where they are saying
not only are we going to take our gold
out of the US, we're going to we're
going to take our gold out of Canada.
And uh that that means that Trump's
efforts to isolate Canada, to to speak
ill of Canada, uh to dis, you know,
disrupt Canada's relations actually has
had some effect. I hate it. I hate that
that the Netherlands has done this. Ben,
what do you have to say about that?
>> The Netherlands would probably be saying
it's, you know, it's it's just business,
folks. It's just business. There's
instability. instability and you know
money money money doesn't like
instability but um you know on the other
hand you got to understand there have
been these overtures of Europe towards
Canada
uh for example the recent meeting of the
European Union that happened they
invited Canada they invited Carney to be
part of that and technically I I do hear
people here talk about would Canada join
the European Union you have to have to
be eligible you have to have a border
with a European state. They actually do,
which is the Sier Mikolon, which is an
island right off of Canada that is part
of France. So technically, they might be
able to even do that. So this whole
Harney vision of middle powers coming
together kind of thing. Uh that's
possible. But, you know, there are
people who are working very hard to get
uh um uh uh separatist movements going
inside of Canada from the United States,
you know, out in Alberta and all that.
There's a couple referenda going up in
Alberta. But what's really interesting
is the Alberta referenda. Um it
basically is saying basically, can we
have more autonomy? Can we enter into
discussions with the other provinces and
the federal government about sort of
having more autonomy?
And I think in the context of the the
ruling of the Supreme Court of Canada
called in Quebec was huge advisory
opinion about the separatist movements
in Quebec. Basically the view is that
that is a constitutional amendment
vision. So we can do this. That can
happen. You can have more flexibility in
the context of an amendment to the
Canadian Constitution. Now the thing
about the Canadian Constitution, I
understand, is that it has to be agreed
by all the provinces,
all the provinces and the federal
government. It's not like in the states
where you need three quarters of the
states or something like that for an
amendment to the constitution. It needs
all the provinces there. So you know
there it dialogue is a big part of what
goes on in this country. Thank you, Ben.
David, hey, I want to um ask you the
question I asked Ben, and what what kind
of consequences do you see on the
horizon with our relationship with
Canada? Uh and secondly, because you are
a border state with Canada, what are you
hearing from folks in your community?
>> Couple of things. Um first thing is it's
just so disappointing. Um like many
Americans, I have a great fondness for
Canada. Um, when I was growing up, uh,
my father and I would take flying trips,
uh, into Canada for fishing, um, which
were wonderful memories. Um, as I got a
little older, I would spend, uh, summer
vacations, um, in Vancouver. And I came
to the conclusion that two of my
favorite cities in the world outside the
US are Vancouver and Barcelona. Just a
wonderful city. It's a wonderful place.
And I think there's millions of
Americans that have [clears throat]
Americans that have wonderful memories
of Canada. So, it's so distressing and
disappointing that we have uh a
president who's creating a crisis uh
that just isn't necessary. And it's kind
of the pattern, I think, in his global
behavior of continually creating crises
that are that are unnecessary. I mean,
the here's the fact. We have a border,
if we include Alaska, of over 5,500
miles with Canada.
Could you imagine if we had to defend
that border? um militarily um we would
never have become the country we've
become and the reason we are so
prosperous is because we've had this
tremendous relationship with Canada and
we haven't had to devote those kinds of
resources to defending this massive long
border and people have to keep that in
mind that relationship is critical to to
our own prosperity and what's happening
now really impacts that negatively. Um
so so it's really disappointing. Um
getting back to the the question of
tariffs themselves uh as we know um we
had the international um emergency
powers act tariffs early in this first
term for for uh the president and the
United States Supreme Court in February
2026 said that act does not give you the
power to impose these tariffs. And now
suddenly we had billions of dollars that
have been collected unlawfully creating
all kinds of a crisis as to how are
those going to be refunded? Who's going
to get them? That has not been settled.
It's creating a lot of chaos. So, so he
didn't have the power to do that. So
this time he's going to take a different
route. not the same statute, but coin
back to to basically Great Depression
legislation, the um the tariff act of
1930 um section 338 that says that when
the president finds qualifying
discrimination, he may proclaim
additional duties sufficient to offset
the burden or disadvantage subject to a
ceiling of 50%.
And now he's declared it's going to be
50 50% tariffs. Well, okay, we've got a
problem again. Um, what the statute says
that you can declare tariffs up to a
ceiling of 50% that are sufficient to
offset the identified burden or
disadvantage, but there's never been an
identification of any burden or
disadvantage. Um, he just went to the
top ceiling of 50%. So right there I
think these tariffs again are subject to
significant challenge and really a
strong challenge that that required
assessment of what level of tariffs do
we need to offset the burden has never
been done.
>> I'm confused as to what specific
advantages Canada has been taking on the
United States for decades. That's that's
his mantra is that Canada's been taking
advantage of the United States for
decades. Um, do you have any sense of
what specifics Donald Trump could be
referring to? Because I certainly don't.
>> Canada's been flooding flooding
Minnesota with hockey sticks.
You know, that's that's that's a that's
a global issue for sure. Um, uh,
yeah, again, it's just it's blustering
and exaggeration and um, you know, it's
just it just seems that is the modus
operande is is Christ's creation. um in
places where we don't need crisis. And
uh so no, I think that a lot of what he
said simply isn't true. Um it's an
exaggeration. Um you know, he's trying
to inflame his base, which he has been
successful at doing, but frankly, that
base is starting to turn away. Um people
are getting so so disgusted with what's
happening with the economy, the fact
that prices are going to go up, they
continue to go up. And every time we put
on tariffs, prices will go up. consumers
pay for tariffs. And um I I I I'm I'm
kind of my optimism is growing that
maybe enough people are getting
dissatisfied with the way things are
developing that maybe we'll have some
successes in November.
>> It's like 57% are not appreciative of
Donald Trump's uh recent tariff, you
know, that have been imposed. Um only
about 20 25% think that's a good idea.
So clearly the numbers are not there for
him to support. Um not only the the 50%
on 20 billion, but now he's going to
retaliate with another tariff on auto
parts and automobiles which really will
devastate the the you know the secondary
market for automobiles and certainly
trying to maintenance and service them
uh by putting that kind of tariff
percentage on something that's important
as automobiles. As Jay mentioned, what's
what's so frustrating about this is both
countries are going to be hurt by this.
You know, that that producers,
manufacturers, importers, they're all
going to be hurt by this unnecessarily.
Um and uh and that is that is so
discouraging. Um, I I just think we we
need to again appreciate the fact that
our relationship with our northern
border has been so essential to the
development of prosperity of our country
that we need to protect that and rather
than destroy it. And that's what's
happening now.
>> Chuck, where do you where do we go from
here with our our neighbor, our ally,
our friend?
Do you do you see um things simmering
down or do you think um that the
temperature is going to rise with uh
with these trade tariff wars? Your
thoughts? One of the reasons that's a
good question is it directs us to take a
look at how are these recent
distractions and projections
against Canada, against others
different from those maybe earlier in
Trump's second term? One of the big
differences is they're not landing. The
polls for Trump, no matter whose polls
they are, are going down. And they're
going down cataclysmically,
his choices of who to attack, who to
distract with, who to project up on
are not working with the people. That's
also demonstrating a second major gap is
the press that pays attention to these
distractions and projections is no
longer having the level of attention and
influence on the people [clears throat]
that they might have had before or he
might have thought they had before.
It's just it's not registering.
And then third, the timing is really
really poor. He's now
two months in change
from actually barely two months from the
midterm November elections in which
those choices, those impacts, those
influences that his previous tactics of
projection and distraction
theoretically were working for him for
clearly aren't.
Does he have time to make it up? What's
going to be the effect? That's why he's
had to resort to the other tactics, the
gerrymandering, the interference with
mail voting, and all of the other things
that he's doing, the [clears throat]
threats to send ICE to polls, all those
things to try and interfere with the
elections themselves. And certainly he
will try to call them into question when
they don't go well for him as it's quite
apparent they will not.
>> So if you're a Canada, are you going to
wait till after the midterms to um try
to settle their tariff differences or do
they try to do it because it's a burden
on their economy as well as ours? It's a
really good question,
but I don't know that Canada has the
ability to get Trump to change course
within that two-month time frame before
the midterms.
So, [clears throat] it may be wiser for
Canada to do what they've been doing for
the last year and a half, which is to
shift their emphasis to relationship
building with Europe and with other
countries. They should also look at
South America
and maybe Central America, maybe Africa
as potential trade and diplomatic
relationship building
sites as well. when China was imposed,
you know, the soybean tariffs
and those markets changed. China went
elsewhere to find their soybeans and the
markets for American farmers uh
dissolved, dissipated, dissolved. And
the problem is, are we in the same boat
with Canada? Will they start looking for
their new trading partners and leave us,
you know, in the dust? Well, one of the
things that makes that a really good
question is
Trump essentially leaves them no
alternative but to do that.
There is no recourse back to him to get
a better deal.
And even if they got it this week,
it could be gone again next week and in
a much worse position.
So there's no reliability. The
destabilization
that Ben [clears throat] refers to is
really the destabilization of the entire
relationship and basis of trust. And
unfortunately
for Trump and for the American
industries,
including the auto industries that
establish lots of
auto manufacturing and distribution
plants in Canada,
they don't have any other choice.
>> Good point. I think that concept of the
the relationship is paramount and that's
the question Jay I want to ask you is if
Trump left tomorrow the office of
president of the United States
where does the relationship with Canada
go from there um is is is there going to
be a long process of healing and and
repair or the fact that Trump is no
longer president um does that change
things instantly when that eventually
happens
>> cuz uh if you left tomorrow we'd have
another Republican there uh who may be
sworn to uh continue Trump's policies.
But in any event, I feel that the damage
and I I know some Canadians, I know Ben
Davis, for example, um who who feel that
this is permanent, that what has
happened here is so outrageous, so
profound that Humpty can never be put
back together again. Not in our
lifetimes. I mean, sure, there'll be
efforts, but first, Trump is not going
to make a deal at all here. Never. Trump
and Carney are oil and water. Not to use
those terms. [laughter]
But there's never going to be a deal
here. Never going to be a deal that will
satisfy Canada or for that matter that
will satisfy Trump. The second thing I
want to point out is yes, I mean they
are they have no choice but to look to
other markets. So they are doing the
rational business-like thing. They're
looking to Europe. They're looking to
China. [clears throat] They should be
looking to the global south. Uh they
should be abandoning the US. And once
they establish new trading arrangements,
new, you know, new best friends or
friends in general, they're they're
going to be locked into that. But, you
know, you can't walk away from that. You
have to promise people that you are
reliable and stable and when you make a
deal with Canada, you know, it's a
long-term thing. One other point I want
to mention is this. This is all
happening as everything that Trump does
is happening in a goldfish bowl. And so
um you know what we what we have here is
the whole world is is watching this
stroke for stroke tit for tat if you
will and they are they are finding it
completely outrageous. And what they are
concluding I don't know where I put
Netherland the Netherlands in on this
but what they are concluding is you
can't make a deal with Trump. Trump is
going to destroy all relationships
everywhere. If he would destroy the
relationship we have had with Canada for
hundreds of years, what is he going to
do with all these other countries? It
does not pay to try to have a
relationship with him. You can't count
on the United States any more. So, we're
not coming back. Um, this is permanent.
So I think people are watching this and
people everywhere watching this and and
finding um that this is not something
that can be fixed. So um all in all I
would I would say that they're they're
right the Canadians are right to move
on. It's changing the world order, the
world trade order, but also the world
order in general. And the US will never
have the relationship that it has had
with Canada. This is a very sad moment.
>> Let me take this uh that comment Ben to
you. Uh we do share not just you know
trade imbalances or you know the tariff
war but also we share a lot of military
um cooperation with Canada. NORAD comes
to mind. Um certainly military
intelligence comes to mind. And to what
degree is our military going to be
compromised if we don't have cooperation
from Canada and vice versa? I mean it's
uh it's been a shared uh relationship
for for military purposes. Your thoughts
about that Ben?
>> I would [clears throat] agree with uh
all all who have spoken before. Um in on
the military front I would say
already there is a question of
intelligence sharing that there is a
clear fear among our allies about
sharing intelligence with the United
States that will go to Russia right away
and and those levels of of you know like
the five eyes and all that stuff kind of
where we you know really top level you
know Bletchley I mean the old real sort
of deep intelligence stuff right there's
all is all there's a question there is a
question in every intelligence service
probably in the allied world and
military if we tell the Americans
something does it go back to Russia and
does it go back to China and North Korea
for that matter
>> listen to your statement how pathetic is
that you even think is a real
possibility.
>> I've read that, you know, those kind,
you know, you have the Munich's
conference and all that stuff. So, so
then, you know, if we talk in terms of
North American defense,
um
I I would think that that question mark
would be somewhere in the thinking of
anyone who was not American uh in the
Canadians. It would have to be there.
Now you remember after Trump's first
term, Biden came out and he said,
"America is back." Remember this to the
world. And I distinctly remember
Europeans saying, "Yes, but for how
long?" And now here we are where you
have the prime minister of Canada says
it's kind of looking like doing a deal
with the United States. It's signed.
What was it? And signed in pencil
>> and it wasn't a number two pencil. Uh,
okay. Thank you, Ben. Um, David,
you know, you you're you're in the legal
profession. You're a professor. You've
been a negotiator.
What solution potential solutions do you
see in the future to try to soothe our
our conflicts with Canada? Do you see
anything as um a viable way out of this?
Oh, touche.
the personal attacks. Um, the fact that
we've devolved to that level. Um, that
just has to stop. Um, you know, this
back and forth insulting is just a
terrible thing. Um, you know, we are so
integrated with Canada in so many
different ways. I'm a big baseball fan.
You got the Toronto Blue Jays. You know,
hockey Minnesota is the state of hockey.
Um, we got American hockey teams.
looking at Canadian hockey teams. Um,
you know, I think that the emotional
connections can actually be revived. Um,
uh, cuz I think they're very deep. Um,
but the that, but the [clears throat]
point Jay made is that as you reach out
globally and you begin to create new
legal relationships and trade
relationships, those are not going to be
one-year deals. Those are going to be
long-term deals. And so, you know,
you're you're still my friend and I like
talking with you and I'll I'll play
sports with you, but I'm out trading
with you now because I'm locked into
this other deal and I'm locked in the
other deal for 10 years. Um, you know,
so so that those kinds of things would
be very difficult to undo and uh we need
to be attentive to that that there's
going to be a long-term cost to these
relationships that we cannot recover
from quickly. There's an old kind of
theory is that those who you trade with
tend not to be those who you go to
battle with and uh you know slow strong
trading partnerships result in strong
military allies which we've had with
Canada for all these you know many
decades and you know centuries actually.
Um, I think that's a concern that would
be on my mind as we move forward if if
we start losing those trades
relationships. Um, does that spill out
into other areas? So, all right. Uh,
David, thank you. Uh, Chuck, last
question before we go to final thoughts.
You're a mediator. You've done it for
most of your life. Uh, do you see
anything on the for the forefront or the
horizon that could um lower the
temperature between this conflict
between Canada and the United States?
>> I don't presently because the guy you've
got at the negotiating table to the
exclusion of everyone else is exactly
the wrong person. I mean, he he holds
himself out as the guy who makes the
best deals. When's the last deal he's
actually made that's really stuck?
that's had any benefit for the the US at
all.
That would take a while for somebody to
come up with an answer to. And where are
the deals that he's initiated
that have totally crashed and burned
literally?
So,
[clears throat] the one area
the one area where there might be room
if if he got out of the way and let the
American businesses do what they've been
doing for the last several decades,
negotiate their own
relationships and arrangements and trade
deals and land deals and exchanges and
transportation with Canada and with
other countries. Those are the
negotiators. Those are the people who
bring something to the table, who have
something to offer. That was the basis
of how those deals got made. Trump
didn't make those deals. American
automakers and American
construction companies and others made
those deals because there was benefit to
both.
That's what mediators do is put people
together for mutual benefit.
That's exactly the opposite of Trump's
negotiating style and it's why it's
doomed to failure every single time.
>> Excellent point. Uh let's go to final
thoughts. We're out of time. John, I'll
go to you first. Your final thoughts,
please.
>> I find myself in a difficult spot where
I hear the Canadian prime minister and I
tend to find what he and his government
says is credible. And I hear my American
president and his administration and I
don't believe a word of what they say.
That is in my head at this point. And
there's nothing that you can they can do
that could change how I feel about how
or how I understand what they say
because usually a day or two later I
find out that in fact that was just
smoke being blown at me about this that
or the other and that is a you know and
I'm just an ordinary guy just imagine at
the level of sophisticated people who
can actually you know get research done
for themselves to check things out and
all that in our in trading partners
around the world who can, you know,
double check all of that in a second.
It it's a it's a it's a devastating
state of of play for any kind of
negotiation. Uh you you feel like the
United States appears to be like the guy
who is always going to stiff you when
you negotiate with him. He's always
going to stiff you. So what do you do
when you're dealing with the guy who is
always going to stiff you?
That's that's the way it looks and
that's what makes it so hard. Now
September 8th, right after Labor Day,
you will have these Canadian tariffs
that will go on uh for the same amount,
the same $20 billion.
You know, this is back to the old kind
of trade wars that we learned about in
economics 101 is what led to that
depression back in the 30s, remember? Uh
so it's a tough tough tough time but
where you don't believe one side it's
really difficult to to see what the way
out is.
>> Well I know one thing when you negotiate
something both parties have to feel like
they got a benefit out of it and if one
doesn't feel that way then it's a bad
it's a bad negotiation.
So good point Ben thank you David to you
your final thoughts.
>> Does Canada have any leverage here?
Well, you know, maybe they do. You know,
when they're going to come with their
September tariffs, maybe they target,
um, manufacturers in Ohio, um, and Texas
and Florida, maybe they have targeted
tariffs that damage Trump's strongholds.
Um, I think that that'd be a great
strategy and something they're probably
thinking about. Um uh my other final
thought is that you know if you've ever
wondered whether you should vote, you've
got to get out and vote. And as you
prepare to go out and vote, you have to
understand and anticipate that there's
there are going to be obstacles that you
may have never seen before. Um uh and
you just have to be prepared for that.
You have to be committed to voting and
understand that it might be more
difficult than this year than it's been
in the past. But that don't don't let
that stop you because um we've talked
about what can we do to change things.
Well, you know, changing our
congressional representatives and um
it's one of the things we can do and
hopefully we can do that in November.
>> Good point. And uh to add on to that,
vote early, don't wait. So, thank you
very much. Appreciate it, Chuck. Your
thoughts?
>> Yeah, I think Bened [clears throat]
have made really good points and
we're coming into the midterms
with Trump [clears throat] and his
allies on a
really destructive downward spiral
both domestically and internationally.
We've got an opportunity as long as
people are prepared to
protect and defend the election and its
results.
So maybe a message can come out of that
that will point for Trump's last two
years as a direction that will force
some level of negotiations.
>> All righty. Thank you very much, Chuck.
Jay, you get the final word on this and
uh let it fly.
>> Well, Chuck, I really agree with a lot
of what you were saying, you know, about
the fact that Trump has never made a
deal that worked. Okay. Um but what he
has done is he has destroyed
institutions all over the place. Not
only in this country as a matter of law
or social policy, everything you can
quote me. Everything that he has done
has destroyed things and everything that
he has done internationally has
destroyed things. So it's not a question
of whether it's it's more than a
question of whether he's ever made a
deal. He's everything he has done has
been destructive. And this is a really
good example of destroying something
that is very important to the US. So, I
mean, I blame him 1,000%
for this instability we now have with
Canada. Um, and I and I am very
concerned that it will hurt both sides.
I certainly agree, David, that um this
is going to hurt the US and that people
are going to turn away from Trump and
they're going to vote against him
because they are going to be damaged
profoundly not only at the border in the
border states, but all over the country.
this this uh this kind of destructive,
you know, behavior is going to hurt
everyone, including everybody here on
this show. Watch what I say. This is,
you know, it's it's part of his
destructive MMO. On the other hand,
David, you and I had a show, some
counter discussion a few months ago
about the midterms, and you and others
here on the show keep assuming that
there will be midterms. As Chuck said,
there's lots of indications
that he is going to try to undermine the
midterms. And the best we can hope for
is chaos in the midterms and and
litigation after the midterms and and
confusion around the midterms. So, it's
not so easy if all these people who have
been damaged vote against him or try to
vote against him. Bottom line is there's
no easy solution in the country to deal
with what he's doing and there's a fair
chance that he is going to get away with
it. Watch this space. All righty. You
know, this is an important topic. I'm
glad we took the time to discuss it. I
want to thank my guests and my co-host
for their excellent insights and their
excellent comments. I'd like to thank
Jay Fidel, Ben Davis, David Larson, and
Chuck Crumpton. The title of this show
has been tariffs war with Canada
unnecessary fight with US friend and
neighbor. This is American issues take
one and I'm Tim Aachelli your host and
won't you join us in a couple weeks and
until then aloha.
>> [music]