As a Canadian opposed to tariff wars, I advocate for tariff exemptions between the U.S. and Canada, countering the view that tariffs are necessary to protect domestic industries. The U.S.-Canada trade relationship is a cornerstone of both economies, with $1.2 trillion in bilateral trade in 2024, making it the world’s largest trade partnership. Canada sends 77% of its exports to the U.S., accounting for 32% of Ontario’s GDP and 40% of Saskatchewan’s, while 1.4 million U.S. jobs depend on Canadian exports. Tariffs threaten this symbiosis, especially in integrated supply chains like automotive, where parts cross the border up to eight times, amplifying costs.

A 25% tariff could shrink Canada’s GDP by 2.6%, costing households $1,900 annually, and reduce U.S. GDP by 1.6%, with families losing $1,300. The 2018 steel tariffs raised U.S. consumer prices by 1% and cost 220,000 jobs when retaliatory tariffs hit. Exemptions under the USMCA, covering 38% of Canadian imports, mitigate these losses. Canada’s energy (60% of U.S. oil imports) and critical minerals are vital for U.S. security, making tariffs counterproductive.

Exemptions preserve jobs, stabilize prices, and strengthen North American competitiveness against global rivals like China. Tariffs fuel inflation and disrupt supply chains—exemptions are the smarter path.