Karim Walji is certain he is about to lose business. Worried he may have to shrink his workforce — fire people — for the first time in eight years. He blames President Donald Trump and what Walji sees as a reckless power trip. “He wants the US to flex their muscle,” said Walji, a partner in AI Industries, a steel fabricating plant in western Canada. “He wants to show that the US is strong and, ‘Because I am bigger than you are, I can bully you around, and this is how I am going to do it.’” Last week, AI Industries was a shining example of one of the world’s most remarkable and lucrative trade relationships; US-Canada trade totals just shy of $800 billion annually. This week, it is one piece of a confusing trade confrontation that keeps shifting from war to detente. Trump on Tuesday slapped a new 25% tariff on almost all goods coming from Canada and Mexico. Then on Thursday, Trump suspended some tariffs for nearly one month, his latest about face. Walji prefers no tariffs, of course. But he says Trump’s constant threats and reversals have made planning impossible and are already driving up costs and hurting both nations’ economies. “Even with the threat of tariffs, prices and material prices have gone through the roof and gone higher,” Walji said. “We’re seeing right now when we are bidding a job today versus bidding it three months ago, our cost has gone up almost 15 percent.” The British Columbia visit was the first international foray for our All Over The Map project, which is shifting from its initial focus on the 2024 campaign to the impact of the new administration’s policy agenda. We visited a few days before the Trump tariffs were scheduled to take effect, and the AI Industries plant was humming. Giant steel beams on one belt were moved into position for custom cuts and drill holes. On another, a worker welded angled braces. In the yard, beams were tagged and stacked neatly: American steel, shipped across the border by rail for custom fabrication. Some of it for a new high-rise in Vancouver. Some of it soon to be shipped back across the border for an office project in Alaska. Canada has said its retaliatory tariffs would stay in place until Trump made the pause permanent. American companies will suffer too, Walji said. Specialty steel fabrication requires enormous, expensive machines. “Made in the USA” is on almost all of the big cutters and drillers at AI Industries. The machines range in price from $400,000 to nearly $1 million, and Walji said several are due to be replaced. But with Canada’s retaliatory tariffs in place, he said he would purchase new machines from Europe — not from the Illinois company that has been his supplier for years. It is not just that Canadians believe Trump is practicing bad economics — bad math. They are also offended by his bad manners; constant references to Canada as the 51st state and its prime minister as “governor.” “I find it very insulting,” Walji said. “It’s disrespectful.” British Columbia is a living postcard, with scenic mountains and farmlands and gorgeous waterways. The importance of trade is just about everywhere you look. Canadian lumber stacked and wrapped at river’s edge waiting to be shipped. Rail yards filled with cars carrying Canadian crude oil and farm products and more. Truck after truck heading to and from the docks and rail yards. “If you watch for eight hours, you’ll see on average we’ve got 10 ships arriving and 10 ships leaving,” said Peter Xotta, the CEO of the Port of Vancouver. “We did about 160 million tons of cargo last year. Seventy-five percent of that is those bulk commodities. Grain, coal, potash, sulfur and other agricultural products.” Xotta said a protracted trade war would be devastating. “The economic activity here is very dependent on north-south trade,” he said. But he also said Trump’s tariffs and tone had Canada rethinking things. “It’s been a wakeup call for Canadians that we need to figure out a way to be not as dependent,” he said. Vikram Vinayak likens it to a bad dream. Vinayak is a father of two, an immigrant who came to Canada in 2019 to be with his wife and start a family. He loves his job as short haul truck driver, but says he has no choice but to look for a new one. Right now, he has as many as five runs a day and works 40 to 50 hours a week. But between 80 percent and 90 percent of his shipments are headed to the United States. With any new US tariffs, “the number of loads will decrease, and my hours will also decrease.” He sometimes heads to Seattle to shop, and the family took a Las Vegas vacation last year. But “nowadays because of the tariffs everything is getting intense. I can’t think of going anywhere.” Darryl Lamb is the brand manager at Legacy Liquor Store. Suddenly he’s in the crosshairs of a trade war. In addition to the Canadian government’s reciprocal tariffs, the premier of British Columbia is taking additional steps to show displeasure with Trump. The province is banning sales of American alcohol brands from states Trump won in 2024 that also have Republican governors. So Kentucky bourbon is exempt, because Gov. Andy Beshear is a Democrat. But Jack Daniels and other Tennessee whiskeys would be banned. Yellow Rose Bourbon is from Texas, as are Tito’s and Deep Eddy vodka. It is Lamb’s job now to get them off the shelves. “We’ve gone through this before with the Russian invasion of Ukraine,” Lamb said. “We were asked to remove all Russian products from our shelves.” In the days before the tariffs were scheduled kicked in, Lamb said some customers raced to stockpile American favorites before they were banned. But other customers got testy with store employees, demanding that all American products be taken off the shelves because of Trump’s tariffs and insults. “There are a lot of people that are passionate,” Lamb said. “Canadians love their country, you know, and when you hear ‘governor’ and ‘51st state’ and all this stuff.” He urges angry customers to stay calm, or to write their member of parliament. But he understands their anger with Trump and his not-so-neighborly broadsides. “We’ve been together for a long time,” Lamb said. “We fought wars together. We went to Afghanistan. We did all this stuff together. Why? What are you doing here?” This story has been updated with additional details.
Canadians in crosshairs of trade war call Trump’s tariffs a ‘bad dream’
TruthLens AI Suggested Headline:
"Canadians Express Concerns Over Economic Impact of Trump’s Tariffs"
CNN
5.9
TruthLens AI Summary
The recent escalation of trade tensions between the United States and Canada has left many Canadians, particularly those in industries reliant on cross-border trade, feeling anxious and uncertain about their economic futures. Karim Walji, a partner at AI Industries, a steel fabricating plant in western Canada, expressed concerns that President Trump's tariffs, which recently imposed a 25% levy on most goods from Canada and Mexico, could force him to downsize his workforce for the first time in eight years. He criticized Trump's approach as a 'reckless power trip,' suggesting that such aggressive trade policies are not only harmful to Canadian businesses but also detrimental to the broader U.S. economy. The unpredictability of Trump's tariffs has made financial planning nearly impossible for firms like AI Industries, driving up costs significantly, with material prices increasing by nearly 15% in just three months. The tariffs are also prompting Walji to consider sourcing new machinery from Europe instead of American suppliers, further complicating the trade dynamic and economic relationships between the two nations.
The impact of Trump's tariffs extends beyond individual businesses; it affects entire communities and industries across Canada. The Port of Vancouver, a critical hub for trade, reported that a significant portion of its cargo is dependent on trade with the U.S., and any prolonged trade war could devastate local economies. Residents like Vikram Vinayak, a truck driver, are already feeling the pinch, as tariffs threaten to reduce the volume of shipments to the U.S., directly impacting their livelihoods. Additionally, the British Columbia government has taken measures to retaliate against U.S. products, further escalating tensions. Retailers like Darryl Lamb at Legacy Liquor Store are caught in the crossfire, having to navigate customer frustrations and changing regulations regarding American products. The growing sentiment among Canadians is one of frustration and disbelief at the current state of U.S.-Canada relations, with many viewing Trump's rhetoric and policies as disrespectful and harmful to a long-standing partnership. As the situation unfolds, Canadians are re-evaluating their economic dependencies and considering alternatives to mitigate the risks posed by U.S. tariffs and trade policies.
TruthLens AI Analysis
The article presents a narrative of uncertainty and distress among Canadian businesses as they grapple with the ramifications of U.S. trade policies, particularly the tariffs imposed by President Donald Trump. It highlights the fears of business owners like Karim Walji, who are experiencing increased costs and potential job losses due to fluctuating tariff regulations.
Economic Impact of Tariffs
The article emphasizes the immediate economic implications of Trump's tariffs on Canadian industries. Walji’s experience reflects broader concerns among Canadian manufacturers who rely heavily on cross-border trade with the U.S., valued at around $800 billion annually. His statement regarding increased costs, specifically a 15% rise in bidding prices for jobs, illustrates the tangible effects of unpredictable tariff policies on business operations and profitability.
Political Context and Perception
Walji's remarks about Trump’s leadership style suggest a perception of recklessness and bullying in international trade relations. The article conveys a sentiment of frustration among Canadian businesses towards U.S. trade policies, framing them as disruptive and harmful. This political context serves to reinforce a narrative of vulnerability for Canadian companies in the face of U.S. economic power.
Public Sentiment and Community Response
The article aims to resonate with the Canadian public and business communities by showcasing the fears and concerns related to U.S. tariff policies. By highlighting the direct impact on jobs and businesses, it fosters a sense of solidarity among those affected. This narrative is likely to elicit support from communities that prioritize stable trade relations and economic security.
Hidden Agendas or Alternative Narratives
While the article focuses on the negative impacts of tariffs, it may downplay potential benefits or alternative perspectives regarding trade negotiations. There is a possibility that the article seeks to elicit a specific emotional response from its audience, emphasizing fear and uncertainty without equally addressing any counterarguments or positive aspects of trade policies.
Manipulative Elements
The language used in the article, particularly terms like “reckless power trip” and “bully,” suggests a deliberate framing of Trump’s actions in a negative light. This choice of words could be seen as manipulative, aiming to provoke a strong emotional reaction from readers. The narrative may be designed to align public sentiment against the U.S. administration's trade policies.
Broader Implications
This situation has broader ramifications for the Canadian economy and its relationship with the U.S. If tariffs persist or escalate, it could lead to significant job losses and economic downturns in affected industries. Conversely, if a resolution is reached, it may restore stability and confidence in cross-border trade, benefiting both nations.
Community Support and Audience
The article is likely to resonate more with business owners, workers in manufacturing sectors, and the general public who may feel the direct effects of trade policies. It appeals to those advocating for stable and predictable economic relations between Canada and the U.S.
Market Reactions
The news surrounding tariffs can significantly affect stock markets and investor sentiment, particularly for companies in the manufacturing, steel, and trade sectors. Stocks of companies that rely heavily on cross-border trade may experience volatility as news unfolds.
Geopolitical Relevance
The trade tensions between the U.S. and Canada reflect broader geopolitical dynamics, especially in the context of global trade relationships. As these tensions evolve, they can influence international perceptions of U.S. leadership and its impact on global markets.
Use of AI in News Production
There is no direct evidence suggesting that AI was used in the writing of this article. However, if AI had been employed, it could have influenced the tone and framing of the narrative, possibly focusing on emotional engagement to drive readership. AI models may have analyzed public sentiment to tailor the article’s language accordingly.
The overall reliability of this news piece hinges on its focus on personal testimonies and economic data, despite potential biases in language and framing. The article accurately reflects the concerns of those affected by trade policies, though it may not provide a full spectrum of viewpoints.