King and other premiers hit Washington hoping to open Americans' eyes to 'quicksand' of tariff fallout
'It's going to cost them more to live every day,' says P.E.I. premier
Prince Edward Island's premier says Canada's ongoing trade dispute with the United States will ultimately lead to a higher cost of living for people on both sides of the border.
Dennis King was in Washington, D.C., on Tuesday, along with other Canadian premiers, to talk with leaders in the U.S. about the strained trade relationship between the two countries.
The trip comes just a day after U.S. President Donald Trump announced punishing tariffs on Canadian steel and aluminum — with the threat of more tariffs looming.
"Sometimes in politics and business, you have to deal with shifting sand, but this is like quicksand under our feet," King told CBC News of the political and economic uncertainty levied by Trump.
"The rules just keep changing, and I think it's frustrating for many of the politicians that we're speaking to south of the border."
At the moment, the U.S. is threatening two actions:
- An economy-wide 25 per cent tariff on goods from Canada and Mexico has been paused until March 4 as the Trump administration works on border-security deals with both countries.
- A tariff of 25 per cent on steel and aluminum imported into the U.S. from anywhere in the world is set to start March 12. On Tuesday night, Trump said the Canada-wide tariff would be bundled on top of the other 25 per cent tariff for aluminum and steel products.
Meanwhile, Trump is threatening even more tariffs for a variety of reasons, including on automobiles.
The U.S. is deeply reliant on Canadian aluminum, in particular, and critics of the tariffs say they will merely punish U.S. companies importing a product they will need for the foreseeable future.
King said that punishment will ultimately be passed along to consumers.
"At the end of the day, it's what the consumer pays at the grocery store, what they pay for their electric bill that's going to really be the defining factor in this," he said.
"I think Americans will begin to see that the tariffs mean it's going to cost them more to live every day, and I don't think that's what they signed up for in November when they chose the path they have."
51st state idea 'wrong-headed'
Taken together, Trump's proposed tariffs are so punitive that many question whether the president's threats are real or merely leverage for negotiations to get the best terms on a new three-way trade deal involving the U.S., Canada and Mexico.
Adding fuel to the fire, Prime Minister Justin Trudeau was recently heard on a hot mic telling business leaders at the Canada-U.S. Economic Summit in Toronto that Trump's threat to annex Canada as a 51st American state "is a real thing" motivated by a desire to tap into this country's critical minerals.
"Mr. Trump has it in mind that the easiest way to do it is absorbing our country and it is a real thing," Trudeau said, before a microphone cut out at the start of the closed-door meeting.
King said Tuesday he was "offended" at the notion of annexation.
"I think it's short-sighted and… wrong-headed. We're going to stand up for ourselves, and our best relationship with the United States is one that's fair on both sides of the border," he said.
"We can't be kicked around for too long. I think we're going to kick back."
With files from Kate McKenna