The Trump Referendum

Gordon L. Weil

Voters unhappy with the performance of President Trump are looking for opportunities to express their discontent at the ballot box.  House elections to fill vacancies offer them little comfort thus far, because the seats have been solidly Republican.  The only cheer for them may be that the new members of Congress did not do as well as Trump did in last year’s election.

But major vote looms, and it is really all about Trump.  It’s when Canadians elect a new parliament. The vote takes place on April 28. That’s somewhat earlier than required by law, but political circumstances dictated the earlier date.

Prime Minister Justin Trudeau, the Liberal Party leader, had grown unpopular. Many Canadians believed that he had not produced an economy they could live with.  Facing the inevitability of a loss, he tried to sweeten the pot by ill-advised breaks for average people. But that would disrupt his budget commitments, and his finance minister, who would have kept them, quit.

His voting deal with other parties then collapsed, making early elections inevitable.  Trudeau resigned as head of his party, which would then select a new leader, who would become prime minister until the elections. It looked like the Conservatives, under Paul Poilievre, would sweep into power.

Poilievre, from the province of Alberta which is the rough equivalent of Texas, is a professional politician who had cast himself in the model of Trump.  Just as several European countries had voted themselves to the right, he hoped to do the same in Canada.  As in the U.S., many people seemed to want a change from Liberal policies that had not produced promised results.

Into this mix of events came Donald Trump.  He moved to raise tariffs in violation of the USMCA trade agreement that he had pushed in his first term.  The relief for tariffs that he clearly believed would cripple Canada was his plan to force the northern neighbor to give up its nationhood and become the 51^st American state.

His push for Canadian statehood had the same kind of effect there as Pearl Harbor had brought about in the U.S.  If there wasn’t instant unity, it came reasonably close.   Ideological sympathies and the export of its oil to the U.S. showed Alberta to be somewhat less enthusiastic about the response to the U.S. than the other nine provinces.

Poilievre was caught flat-footed.  His natural ally had become the great nemesis.  He saw his 25 percent lead melt to the point that he trailed the new Liberal prime minister.

The new Liberal leader was quite different from his predecessor, who had tried to placate Trump despite being called “Governor” Trudeau by his fellow government chief. The Liberals overwhelmingly selected Mark Carney, formerly governor of the Bank of Canada and the Bank of England plus having served as chair of the international Financial Stability Board.

In short, he knows his stuff and won’t agree with Trump’s version of the role of tariffs. He also comes to the job with excellent credentials and standing and, as a former hockey player, has made it clear he won’t deal with Trump unless he and Canada are treated with respect. 

Many Canadians seem inclined to support him, because he will defend the country against any Trump moves.  He recognizes the need for a long-term relationship with the U.S., but he says the old days are “over.”

There is a third party in Canadian politics, the New Democrats. They are similar to the Bernie Sanders wing of the Democratic Party.  It appears that they will lose strength, as Canadian voters want to make a clear choice between Carney and Poilievre.  The Quebec Party wins seats but cannot produce a government. That contest makes the election a clear referendum on Trump.

While Poilievre has been forced to open some distance from Trump, he remains the representative of a party that would move Canada in the same direction as the GOP.  Will voters conclude that he will be better able to work with his political soulmate than the technically competent Liberal leader?

Feeling runs high in Canada against the wild idea, presented as if it could happen, of their country as an American state.  Obviously, Carney is in a better position than the Conservative and looks stronger and more experienced that Trudeau (or, for that matter, Trump). 

If Carney wins at all and especially if he wins big, it will serve as a rebuke to Trump and his a la carte foreign and economic policy.  Not only will it say that Canada will not succumb to Trump, but that the Great White North will stand on its own as never before.  That could send the puck back to the Americans.

 

 

 

Trump Doctrine emerges: America First, block China

 

The Trump Doctrine now takes its place in American history.

Trump joins presidents who adopted broad world policies that became identified with them.  President James Monroe warned that Europe should stay out of the Americas, creating the Monroe Doctrine.  President Harry Truman pledged U.S. support to governments opposing authoritarians, creating the Truman Doctrine (though probably repealed by Trump).

Both Monroe and Truman based their doctrines on the growing American power.  The Trump Doctrine recognizes the limits of American power.  It has become known thanks to Defense Secretary Pete Hegseth, the accidental model of transparency even about the most sensitive government planning.

The Trump Doctrine has two priorities: defending the American “homeland” and preparing for a potentially military confrontation with China.  These are Trump’s basics drawn from Project 2025, a conservative manifesto that he had denied even knowing about.

“China is the Department’s sole pacing threat, and denial of a Chinese fait accompli seizure of Taiwan — while simultaneously defending the U.S. homeland is the Department’s sole pacing scenario,” is Hegseth’s description of the core of the doctrine.

This strategy explains policies that Trump has pursued from the outset of his presidency.  The U.S. prepares to meet a “threat” from China, but it acts now to fulfill a “scenario” of security.

First, defend the 50-state homeland by increasing the buffer around it.  Add Canada and Greenland to create a new, expanded homeland, allowing the U.S. to defend against attack from the north.  Owning territory provides greater security than a mere alliance like NATO.

The original America First movement in 1940-41 preached that the Atlantic and Pacific Oceans were satisfactory buffers, but the new America First supplements them with territory.  The aspirations and values of other nations must be overridden to put this plan in place.

Second, casting any doubt aside, the Trump Doctrine makes clear that the U.S. would use military force to protect Taiwan from a Chinese attempt to seize it.  It makes clear that the principal threat to American security comes from China.  While this may be accurate, all measures short of a military buildup seem to have been ruled out.

What about the rest of the world?  Europe, the Middle East and East Asia defenses would largely be left to regional powers.  The U.S, would help them against threats from Russia, Iran or North Korea, but only within the limits of its resources after dealing with its top two priorities.

Though American policy would call these regional powers “allies,” their dependence on the U.S. for weapons and intelligence would make them something more like the “satellites” that surrounded the Soviet Union and which Putin seeks to recreate. 

Trump’s attempt to take over key elements of Ukraine’s economy in return for past American help against the Russian invasion is a prime example of this approach.  Trump wields the power of tariffs, weapons supply, and intelligence capability to force compliance.  He even demands that foreign suppliers to the U.S. drop their DEI programs.

Because his demands affect the sovereign powers of other nations, his Doctrine could encounter strong resistance.  Sensing any willingness by them to make concessions, he increases his demands.  Leaders may try personal flattery, but can end up appeasing him to avoid retaliation.  History reveals that appeasement fails to yield satisfactory results.

Canada’s Prime Minister Mark Carney shows he understands that appeasement will not work.  Measures to cut tiny Fentanyl flows or a trickle of illegal immigration have only led to greater U.S. demands.  Carney is taking a tougher line with Trump and is trying to rally Canadians to a sense of unity that will preserve the nation.

Britain and France are willing to defend Ukraine, though some other Europeans remain addicted to taking a free ride whether provided by Europe or the U.S.  If those two countries plus Germany and Poland form a core response, they must make some voluntary sacrifices instead of those demanded by Trump.  Ukraine already is making sacrifices for its survival.

Instead of a free world dominated by the U.S., a series of interlocking accords are likely to gradually develop.  A variety of alliances focusing on military planning, arms production, trade and intelligence could grow, though the U.S. would remain a needed partner. 

Given the obvious flaws in American intelligence security, a new version of Five Eyes could include Canada, Britain, Australia, New Zealand plus Germany, which has sought to participate. A deeper trade relationship with Europe could bring Canada a form of associate status with the EU and participation in the Anglo-French military “coalition of the willing.” 

Moves toward greater self-reliance by otter countries could require costly adjustments, but so would the Trump Doctrine.

The U.S. might reverse its policy, but trust in it has been deeply damaged.  Its cast-off friends cannot take any more risks and must create their own future.

 

 

U.S. leadership of the West ending

Gordon L. Weil

The U.S. is like a nation at war.

The federal government is on the attack, deploying the power of the American economy and military to force other nations, states, the media and even citizens to follow the orders of President Trump and his agents.

This brutal campaign would reshape the economy and transform the world order.  It might also replace the American democratic republic with an authoritarian regime.

The end of economic, political and military systems on which many have relied results from the abuse of the awesome powers that Congress has given the president in the naive belief that custom would limit his exercise of them.

The Declaration of Independence states that it was issued out of a “decent respect for the opinions of mankind.”  The actions of the president in the few weeks since his inauguration has shown no such decent respect for the opinions of anybody who differs or objects. 

It would take only a few people to bring the government back under constitutional control.  If even a small number of Republicans in Congress joined with the Democrats, they could pass veto-proof laws to recover from the president the overly broad emergency powers he exercises.  If not, the GOP will share responsibility for Trump’s excesses.

The election certainly produced an administration determined to break with the traditions developed since World War II.  Trump always claimed that was his intent.  But his electoral majority did not give him a blank check to destroy America’s place as world leader or its system of balanced government.

He has routinely abused the congressional grant of emergency authority to take sweeping actions on tariffs and other matters that normally should be handled by Congress.  He has embarked on raising tariffs on imports from virtually the entire world based on a disastrously incorrect understanding of economics. 

He sees normal trade relations as warfare. If purchases from another country exceed sales from the U.S. to that country, for him the net exchange amounts to an intentional and hostile attack on the U.S.  He uses tariffs to raise import prices, and believes foreign suppliers will pay them.  Revenues from tariffs will increase.  Higher import prices will create competitive conditions for U.S. industry, which will prosper.

Other countries have not produced favorable trade balances intending them as hostile acts against the U.S.  Their advantages may come from paying labor too little or damaging the environment.  Higher American tariffs won’t fix either of them, and Trump doesn’t seem to care anyway.

The ultimate absurdity of Trump’s trade policy is slapping high tariffs on imports from Canada, a hostile act that will damage its economy.  Why?  Under a deal Trump made, most trade both ways is duty free. The American trade deficit in goods is more than offset by surpluses in trade in services and investment flows.

He charges without evidence that Canada allows floods of illegal immigrants and fentanyl into the U.S.  People on both sides of the border are bewildered about his real intentions.

He wants Canada as the 51^st state.  Canada, with an economy the equal of Russia’s and composed of 10 state-like provinces, has no interest in national suicide. If Canadians remain unwilling, he would coerce them by using American economic power.  Is that what an aging American president sees as his historic achievement?

He would treat Canada as a mere satellite, and just as he does Ukraine, a nation invaded by and at war with Vladimir Putin’s Russia.  Trump wants to be a peacemaker, with an eye on the Nobel Prize.  No matter that he would sacrifice Ukraine’s land and security for his dealmaking with Putin, whose favor he clearly seeks.

European countries, which share Ukraine’s worries about future Russian aggression, get in Trump’s way.  They embrace President Zelenskyy.  It may have pained Trump to see him received at King Charles’ private residence, just after Trump had received a royal invitation for a state visit.

When a group of European leaders met in London to plan their help for Ukraine, Canada’s prime minister, having turned away from the U.S., was among them.  For the sake of making a deal, Trump is losing American leadership of the West.

The Europeans cling to the belief they need American backing to defend Ukraine and to pursue a lasting peace and not merely a headline.  They must gear up, but meanwhile they could rapidly deploy major support.  Britain once faced Hitler alone, while the original America First movement kept the U.S. neutral.  Europe now needs its own version of Winston Churchill.

In this column, I try to make fair judgments, pro and con, about Trump and the Democrats.  I will continue to do so.  Now, it is necessary to speak out about Trump as he becomes increasingly dangerous, even to the freedom of the press. 

Foreign policy by threats has high cost

 

Gordon L. Weil

Donald Trump conducts foreign policy by threats.   If you don’t do as I demand, he implies, I will simply take you over.  Forget about pursuing traditional diplomacy with friendly nations.

Bullying may work on real estate competitors in New York City, where Trump gained his education in his father’s business, and the volatile world of local commerce allowed him to crush competitors.  

Real estate moguls may come and go, but sovereign nations tend to hang on tenaciously.  Look at Ukraine.  Still, you may dream of your place in history by expanding American territory.  Meanwhile, your diplomats can demand concessions from others by warning them about the president’s unpredictability if they don’t yield.

Trump’s threats may be false, but he uses intimidation as the shortest path to getting what he wants.  Beat up Denmark about Greenland, Panama about its canal and Canada for its supposed dependence on the U.S.  Even if his real goals are unknown, as the powerful leader of a powerful nation, he tries to pressure friendly nations to bend to his will.

In one aspect of this approach, Trump seems to believe that when one country sells more goods to another country, their margin represents a subsidy – getting something for nothing.  In fact, each country gets paid for its products.  It looks like the U.S. should always have a favorable trade balance with others and not “subsidize” anybody.

That policy doesn’t account for trade in services and cross-border investments. It also ignores the mutual benefits that can flow from trade, but measures only money and even that only partially.  It is virtually impossible for a country to have a neutral or favorable trade balance all the time with everybody else.

Trump’s remedy is to boost the prices of imports by imposing tariffs.  If foreign suppliers want to avoid being priced out of the market, they must swallow the tariff.  Otherwise, when tariffs boost their prices in the export market, domestic producers can raise both their prices and their sales.  Either foreign producers’ incomes are cut or American customers pay more or both.

Trump bullies Canada, which he claims without evidence that the U.S. “subsidizes” by $100 billion a year.  He threatens to raise tariffs on imports from Canada to cut the subsidy, and force it to increase its military spending and border controls. 

Trump’s crude and insulting solution is that Canada should become the 51st state.  One Canadian counters that Canada should absorb some U.S. states, including Maine.

Does the U.S. pay more to Canada than it receives? 

In 2023, the U.S. bought about $64 billion more goods from Canada than it sold there.  Canada paid $23 billion more for American services than flowed the other way.  That left a U.S. trade deficit of $41 billion.  But Canadian investment into the U.S. was $77 billion more than U.S. investment into Canada.  (There’s no U.S. foreign aid to Canada.) 

The net result was a favorable U.S. balance of payments with Canada.  Trump chooses to ignore the full facts, the essential details showing there’s no $100 billion “subsidy.”

Canada’s vast territory provides a protective buffer for the U.S., like the Atlantic and Pacific Oceans.  But it needs to boost its military spending.  Trump is right in saying it leans too much on the U.S.  And he has already succeeded in inducing increased Canadian border protection.

To accomplish his objectives, Trump has alienated many Canadians by devaluing their loyalty to their own country. You don’t have to be American to think your country is great. By insulting a close ally and its leaders, Trump may prevail on some current issues, while sacrificing a highly valuable partnership for the long term.

If Trump raises tariffs on Canadian goods, Canada has plans to retaliate dollar-for-dollar.  A trade war only leaves victims and no real winners.  It would harm the relationship for many years, reducing Canadian trust in its “neighbour” (even their spelling is different).  Trump dismisses cooperation to confront China, their common adversary. 

Does Trump really believe that Canada’s ten provinces would readily join the U.S. as a single state, and that Canada would simply drop its own national identity, foreign policy, health care system, gun control, and abortion law, just to avoid high American tariffs or confrontation with him?

Trump’s policy of “America First” must inevitably turn into “America Alone.”  Canada would focus increasingly on trade with other countries.  The European Union, which includes Denmark, might either build its own defense arrangements or see the rise of anti-American nationalism in countries there, leaving the U.S. with fewer reliable allies in either case.

Whatever may be gained by bullying rather than negotiating could come at the loss of long-term trust among allies.  That would be a high price to pay by the U.S., long after Trump’s “America First” has faded.