The contributors to this blog are actively involved in international trade, which gives us a deeper understanding of the rationale behind current U.S. President Donald Trump’s tariffs. While much of the left-leaning media in the United States portrays Trump’s trade policies as protectionist nationalism, they often fail to acknowledge the broader business strategy behind them.
For anyone moving physical products across borders, tariffs quickly become a reality. I remember my first experience vividly. While importing a U.S.-made product into Canada, I was told by a customs officer that the tariff was an “American charge.” That was completely false. It was the Canadian government imposing the fee, and whether the misinformation was intentional or due to a lack of understanding, it reflected a larger issue—many Canadians simply aren’t taught how international trade works.
Unlike the United States, Canada has fewer entrepreneurs per capita. This cultural difference allows Canadian media and government to control public narratives more easily. Meanwhile, Trump, who comes from a business background, understands leverage. His tariff strategy isn’t necessarily about patriotism—it’s about negotiating power.
By applying bilateral pressure through tariffs, Trump is effectively telling trade partners: “If you want access to the American market, meet us halfway.” It’s a bold strategy, but one rooted in free-market principles. Much like how cities bid to host the Olympics, countries must now compete for access to the U.S. economy—one of the most lucrative markets in the world.
Tariffs also generate revenue for governments. In Canada, when I import goods, I’m charged a tariff by the government, which I then pass on to Canadian consumers. But here’s the risk: if consumers stop buying due to higher prices, businesses are forced to withdraw those products or services from the market. This is already leading to reduced competition and fewer options for Canadians.
The bigger issue is how these tariffs interact with Canada’s economic structure. Canada, like many European countries, already imposes significant tariffs and taxes. When additional levies are introduced, prices rise even more. And because Canada has a large and growing public sector—whose wages and pensions are often indexed to inflation—these increases cause a ripple effect. Public sector workers receive automatic cost-of-living raises, which don’t get scaled back when the economy slows down.
This creates a dangerous cycle:
- Tariffs raise prices
- Inflation triggers wage increases for public servants
- Governments must borrow more to cover higher payrolls
- The private sector, already burdened by regulation, begins to shrink
Meanwhile, private sector businesses—especially small and mid-sized ones—are quietly exiting the Canadian market. The cost of doing business is simply too high, and without meaningful austerity measures or reforms, inflation could spiral out of control. In other words, Canada is inching toward the kind of economic instability we’ve historically seen in over-centralized socialist countries.
To be clear, inflation is not unique to Canada—America is experiencing it too. But the U.S. economy is more decentralized. American businesses often negotiate special exemptions from tariffs or adjust more quickly due to greater flexibility and lower regulatory burdens. As a result, U.S. inflation is likely to stabilize sooner than Canada’s.
This brings us to the sobering reality: a shrinking Canadian economy doesn’t necessarily mean lower prices. A deflationary economy, combined with inflationary monetary policy, can actually lead to rising prices and reduced purchasing power. This makes Canada less attractive to international sellers, further reducing supply and driving up costs.
Most global trade is still conducted in U.S. dollars, and when domestic policies devalue a local currency—as Canada’s fiscal strategy is now doing—consumers feel the squeeze. Unfortunately, with no serious conversations about austerity taking place in Canada, the economic outlook is grim.
In closing, we believe there’s more at stake than just economic policy. As we watch governments inflate their way out of responsibility and push the burdens onto taxpayers and future generations, we’re reminded that real solutions go beyond politics or policy.
Consider making Jesus Christ your Lord and Savior today. Because even when the systems of this world fail, His truth and provision