Maxime Bernier Advocates for Tariff Elimination as Canada Faces ‘Liberation Day’

Maxime Bernier Advocates for Tariff Elimination as Canada Faces ‘Liberation Day’

OTTAWA – As Canadians prepare for President Donald Trump’s ‘Liberation Day’, which marks the imposition of reciprocal tariffs on Wednesday, a prominent political figure in Canada is urging the government to abolish all tariffs with the United States. Maxime Bernier, the leader of the right-wing People’s Party of Canada, believes this moment could signify a new chapter in Canada-U.S. relations devoid of cross-border taxes.

In an interview from Halifax, Bernier expressed that it is “absolutely” the right time for Canada to eliminate all existing tariffs against the U.S. His comments come as the Canadian government, led by then-Liberal Prime Minister Justin Trudeau, recently implemented a 25% duty on U.S. products in response to Trump’s tariffs imposed earlier this year.

The Impact of Tariffs

According to Bernier, the tariffs instituted by Canada will not harm American businesses. Instead, he contends they are detrimental to Canadian citizens. He stated, “These duties imposed in early February will hurt Canadians more than they will affect the Americans.”

In his March 28 statement following a call with President Trump, newly elected Canadian Prime Minister Mark Carney reiterated the government’s decision to move forward with retaliatory tariffs in light of U.S. trade actions. This moment represents the first direct communication between Carney and Trump since Carney took office.

Calls for Zero Tariffs

Bernier insisted that Trump should be informed that Canada’s best response to tariffs should be to implement zero tariffs on both sides. He criticized Prime Minister Carney and Conservative Party Leader Pierre Poilievre, alleging they are engaged in a form of fake patriotism by promoting a dollar-for-dollar trade war against the U.S. Bernier stated, “We cannot impose counter-tariffs. The Americans have a far larger economy, and engaging in a trade war would only lead to a recession in Canada.”

Former Conservative politician Tony Clement, who served alongside Bernier in Harper’s Cabinet, weighed in on the topic. Clement acknowledged that while removing Canadian tariffs could have significant economic benefits, public sentiment may not support it at this time. He expressed concerns over the emotional backlash from Canadians in light of perceived threats from Trump, including his previous comments regarding annexation.

Public Sentiment and Political Realities

Clement described the current mood in Canada as one of outrage and distrust towards the United States due to Trump’s unpredictable actions. He emphasized, “People are incandescently mad at the United States, and the political climate does not favor those advocating for a reduction in tariffs without concrete assurances from the U.S.”

Both Carney and Poilievre have voiced the importance of removing the long-standing threat of tariffs, provided that there is mutual trust in negotiations with Trump. However, Clement warned that eliminating Canadian tariffs without a corresponding agreement from the U.S. could be viewed as a sign of weakness.

Future Negotiations and Free Trade

After his recent dialogue with Trump, Carney stated that both leaders have agreed to commence negotiations for a new economic and security relationship immediately following the upcoming elections. This commitment highlights a potential shift in trade policy between the two countries.

Conservative strategist Yaroslav Baran reaffirmed that the United States-Mexico-Canada Agreement (USMCA) allows for tariff-free trade in goods and services between Canada and the U.S., although he noted exemptions that currently exist for certain Canadian agricultural products.

Baran further expressed skepticism about the feasibility of removing all Canadian tariffs on U.S. products as long as American tariffs remain in place. The ongoing trade dialogue will need careful navigation to ensure mutual benefits.

Path to a More Productive Economy

Bernier contended that although Trump’s current tariffs may negatively impact Canadian exports to the U.S., navigating this issue requires thoughtful economic reforms, rather than retaliatory measures. He proposed embracing real free-market principles in Canada, which could include lowering corporate taxes and promoting internal trade and development within the oil and gas sector.

The PPC leader is calling for Canada to display an openness to negotiate and to reassess existing policies under the USMCA. This should include a critical examination of Canada’s supply management system, which he describes as an archaic approach that stifles competition and leads to inflated prices for Canadian consumers.

Revisiting Supply Management

Bernier’s criticism of the supply management system underscores his belief that it cements monopolies on essential goods such as dairy and poultry, ultimately harming Canadian consumers. He pointed out that Canadians often pay significantly more for these products than Americans due to protective tariffs that excessively inflate costs.

During the 2018 negotiations of the North American Free Trade Agreement, which eventually evolved into the USMCA, the Trump administration pressured Canada to dismantle its supply management system entirely. This issue remains a contentious topic in discussions about future trade relations.

Path Forward in Trade Relations

As Canada navigates this complex landscape of trade negotiations and tariff policies, the dialogue among political leaders will be crucial. A balanced approach that considers both economic imperatives and public sentiment may hold the key to establishing a new era in Canada-U.S. relations. By reassessing existing tariffs and engaging constructively with American counterparts, Canada could set the stage for more fruitful interactions on both sides of the border.