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Globe says Magna, others watch Trump make us all poorer

2018-07-04 07:21 ET - In the News

See In the News (C-MG) Magna International Inc

The Globe and Mail reports in its Wednesday, July 4, edition that President Donald Trump has picked a fight with the entire Western alliance. A Globe editorial says Mr. Trump has created a global, multilateral alliance against himself. The Globe says Ottawa must cultivate that alliance to ensure that America's major trading partners are co-ordinating their responses to Mr. Trump's trade actions. The Globe says hanging together may be the best hope of de-escalating a trade war. If the North American free-trade agreement is killed by Mr. Trump, it makes sense for Ottawa to maintain it as a Mexico-Canada deal. If Mr. Trump uses tariffs to dismantle NAFTA, Canada and Mexico -- and their orphaned auto industries -- are going to need one another. In its first round of retaliation, the Trudeau government wisely imposed tariffs on a long list of goods for which there are Canadian or foreign substitutes, with the goal of harming American producers more than Canadian consumers. The Globe says the Canadian economy will not collapse, even if the U.S. builds tall and permanent tariff walls. The economy will find a new equilibrium, albeit one that is less efficient, leaving us all -- Americans and Canadians -- a bit poorer.

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