How Tariffs are Hurting Free Markets and Helping the Wrong Leaders
Donald Trump’s 25% tariffs and aggressive trade policies are backfiring. Instead of protecting American interests, they are pushing key allies away and strengthening leaders who favor big government. In Canada, America’s second-largest trading partner with $910 billion in trade in 2024, Trump’s tariffs are helping Liberal leader Mark Carney. Conservative Pierre Poilievre, who supports free markets and small government, was once leading by 25 points and had a real chance to cut corporate taxes, expand trade, and reduce government control. But now, anger over U.S. tariffs is uniting Canadians behind Carney, ensuring that Prime Minister Justin Trudeau’s legacy of government expansion continues.
The impact is just as serious in Mexico. President Claudia Sheinbaum, already struggling with economic problems, is using Trump’s actions to stir up nationalism and push for more government control over the economy. Instead of strengthening trade under the USMCA, Mexico is turning toward policies that scare off investors and punish U.S. businesses. Trump’s tariffs don’t just hurt exporters—they act like a hidden tax on American consumers, making inflation worse and increasing costs for businesses. By turning away from a natural trade alliance with Canada and Mexico, he is putting North America’s economic future at risk.
The irony is hard to ignore: Trump is hurting America’s own trade interests. His tariffs on Alberta oil, Ontario steel, and Mexican goods aren’t just bad for exporters—they also drive up prices for Americans already struggling with inflation and government red tape. Poilievre’s “Canada First” plan, while not perfect, could have helped build a strong free-market alliance to compete with Europe’s government-heavy approach. Instead of taking advantage of that, Trump is burning bridges, pushing Canada toward Liberal control and reinforcing Mexico's misguided leadership which harms U.S. interests. This isn’t just a mistake—it’s a costly decision that could hurt North America for years to come.