Debunking the Myth of a Trade War: Understanding Strategic Economic Self-Care

Recent headlines have been ablaze with the notion that the United States and Canada are locked in a bitter trade war. Tariffs on metals and autos, political posturing, and heated rhetoric from both sides seem to confirm this narrative. But is that really the case? Is the U.S.-Canada economic relationship truly at war? The short answer is no.

In reality, what we are witnessing is not an all-out trade war but rather a series of strategic economic decisions aimed at bolstering internal stability and economic resilience in the face of global economic challenges. Both countries are essentially putting on their oxygen masks first, ensuring their internal economic health before engaging more broadly. This nuanced approach is far from the chaotic escalation that defines actual trade wars, such as the prolonged U.S.-China trade conflict.

Why the Trade War Narrative Is Misleading

The narrative of a U.S.-Canada trade war is driven largely by sensationalism and misunderstanding of the intent and impact of the measures involved. To label these strategic economic actions as a “trade war” is not only misleading but also counterproductive. A genuine trade war is characterized by sustained retaliatory measures, mutual economic harm, and a breakdown in trade relations. That is not what is happening here.

Instead, both countries are making calculated moves to stabilize their economies amid ongoing global challenges like inflation, housing crises, and the aftermath of the COVID-19 pandemic. These moves are not about crippling each other’s economies but about securing internal economic stability.

Economic Context: Navigating a Turbulent Global Landscape

Both Canada and the U.S. have been navigating a rapidly changing economic landscape shaped by several critical challenges:

• Inflation: Surging to multi-decade highs, both countries saw consumer prices spike dramatically. The U.S. hit a peak inflation rate of 9.1% in June 2022, while Canada’s inflation rate climbed to 8.1% in June 2022. Although both have since seen reductions, the lingering effects continue to strain household budgets.

• Housing Market Challenges: Skyrocketing real estate prices have created affordability crises, particularly in major cities. Policies aimed at cooling the housing market, such as Canada’s two-year ban on foreign home purchases, are not anti-trade but necessary adjustments to protect domestic buyers.

• Supply Chain Disruptions: From pandemic-induced bottlenecks to geopolitical tensions, maintaining a stable flow of goods has become increasingly complex. Policies that protect critical industries are designed not to isolate but to ensure continuity and self-reliance.

The Real Intent: Economic Self-Care, Not Warfare

As countries worldwide grapple with inflation and supply chain disruptions, economic self-care has emerged as a pragmatic approach. Both Canada and the U.S. have opted for policies that strengthen internal production capabilities and reduce dependence on volatile global markets. This is not about shutting out allies but about fortifying their own economies against external shocks.

The Steel and Aluminum Tariffs: A Necessary Adjustment

The 2018 U.S. tariffs on steel (25%) and aluminum (10%) were met with immediate backlash, particularly from Canada. Critics saw this as an unnecessary provocation, but the intent was more strategic than hostile. Invoking Section 232 of the Trade Expansion Act of 1962, the U.S. justified these tariffs on national security grounds, highlighting the risks of relying on foreign imports for critical industries.

Canada’s Strategic Response: Proportional Retaliation

Canada’s response was proportionate and measured, targeting C$16.6 billion worth of U.S. goods. Prime Minister Justin Trudeau emphasized that these measures were designed not to escalate conflict but to signal Canada’s willingness to protect its own industries. Economist Douglas Porter from BMO Capital Markets stated, “Canada’s response was carefully calibrated to minimize domestic harm while clearly signaling that it would not stand idly by.”

The USMCA: Not a Battleground but a Platform for Stability

The United States–Mexico–Canada Agreement (USMCA) replaced NAFTA and reinforced economic cooperation among the three countries. It provided structured processes for handling disputes, fostering dialogue rather than division. Even when tensions flared, the USMCA served as a stabilizing framework that prevented long-term damage to economic relationships.

Comparative Perspective: How This Differs from Real Trade Wars

To accurately assess the current situation, it is essential to compare it with genuine trade wars. One of the most notable examples is the U.S.-China trade conflict (2018-2020). That conflict involved hundreds of billions of dollars in tariffs, prolonged economic harm, and deep hostility that disrupted global supply chains. By contrast, U.S.-Canada tensions have been resolved through targeted, temporary measures and continued diplomatic engagement.

Key Differences:

• Scope and Intent: The U.S.-China conflict aimed to restructure global trade dominance. The U.S.-Canada tensions focused on protecting specific industries without dismantling long-standing economic ties.

• Duration and Resolution: The U.S.-China conflict persisted for years, causing global ripple effects. In contrast, the U.S.-Canada issues were addressed relatively swiftly.

• Economic Impact: While the U.S.-China conflict significantly reduced bilateral trade, U.S.-Canada trade volumes remained robust despite the tariffs.

Public Perception vs. Reality: How Media Narratives Distort the Picture

Media portrayal plays a significant role in shaping public perception of economic policies. The idea of a trade war grabs attention, but it often overlooks nuanced economic strategies. The reality is that both countries have worked diligently to mitigate the impact on households and industries, prioritizing long-term stability over short-term confrontation.

Conclusion: Strategic Moves for Economic Stability, Not Warfare

It’s time to dispel the myth of a U.S.-Canada trade war. What we are witnessing is not a reckless conflict but a series of thoughtful economic strategies designed to ensure domestic stability in a rapidly changing global environment. By putting on their own oxygen masks first, both countries are positioning themselves to emerge stronger and more resilient.

Instead of fueling fears of economic hostility, we should recognize these actions for what they are: pragmatic moves to protect vital industries and safeguard the well-being of citizens. Through continued cooperation, dialogue, and strategic planning, both the U.S. and Canada can maintain their deep economic partnership while navigating the challenges of a globalized world.

The reality is that strategic economic self-care is not warfare – it’s prudent leadership in uncertain times.

This Christmas season, as we gather around the tree, exchange gifts, and celebrate with loved ones, it’s easy to let the story of Mary and Elizabeth fade into the background—a quaint tale for ancient times, far removed from our modern lives. But if we pause and truly reflect, their story holds a profound lesson for us today. It’s a story about trust, connection, and the life-changing power of simple, selfless acts. It’s a story about what God can do through us when we say yes to Him.

When the World Feels Heavy
Let’s be honest: the world feels heavy right now. Inflation is biting, divisions are deepening, and loneliness is at an all-time high. This season that promises peace on earth and goodwill to all can feel, for many, like just another reminder of what’s missing—a loved one who isn’t at the table, a struggle that seems insurmountable, a world that feels cold and indifferent.

But what if that’s exactly where the story of Christmas comes alive?

Mary’s life was anything but ideal when the angel appeared to her. She was young, unwed, and living in a society where her circumstances would invite scorn and judgment. She could have despaired. She could have run. But instead, she chose to trust. She leaned into God’s story, even though she couldn’t yet see how it would unfold.

And then she did something remarkable: she sought out Elizabeth. She didn’t isolate herself in her uncertainty. She reached out for connection, for reassurance, for community.

Isn’t that what we all long for? Someone to understand us, to walk with us, to remind us that we’re not alone?

The Power of Small Acts in a Broken World
We can’t solve all the world’s problems this Christmas. We can’t heal every wound or fill every need. But we can do something. And that something, no matter how small, has the power to ripple outward in ways we may never see.

• The young mother struggling to buy gifts for her children this year—what if your small donation to a toy drive becomes the miracle she was praying for?
• The elderly neighbour who hasn’t spoken to anyone in days—what if your visit, your smile, your plate of cookies reminds them that they are not forgotten?
• The family sitting in silence because grief has stolen their joy—what if your handwritten card or warm invitation breaks through the darkness with a glimmer of light?

These are not grand gestures. They’re not expensive or elaborate. But they are holy. They are the hands and feet of God, reaching out through us to touch the lives of others.

What If It’s You?
Maybe you’re the one who feels like the weight of the world is pressing down this Christmas. Maybe you’re the one wondering if anyone sees you, if anyone cares.

Mary’s story speaks to you, too. God sees you. He knows your struggles, your fears, your heartbreak. And just as He was writing a miraculous story through Mary, He is writing a story through you.

You don’t have to have all the answers. You don’t have to feel joyful right now. All you have to do is trust—one small step, one small yes at a time. Trust that God is at work, even when you can’t see the ending yet.

And maybe, just maybe, one of the small acts of kindness someone else does this season is God’s way of reminding you that you’re part of His story, too.

The Multiplying Miracle of Kindness
It’s easy to feel like what we do doesn’t matter, that the problems are too big and our efforts too small. But consider this: when Mary went to Elizabeth, it wasn’t just an ordinary meeting. It was a moment filled with the Holy Spirit, a moment that confirmed God’s promises and brought joy to both women.

Every small act of kindness we do has the potential to be that kind of moment for someone else. A smile, a kind word, a helping hand—it can be the confirmation someone needs that God is with them, that they are loved, that there is hope.

And those moments don’t stop with us. They ripple outward. The kindness you show someone today might inspire them to show kindness to someone else tomorrow. That’s how God works—through the small, the simple, the seemingly insignificant, until it all adds up to something miraculous.

An Invitation to Be Part of the Story
This Christmas, I’m asking you to take a moment to reflect:

• Who in your life needs an Elizabeth right now—a listening ear, a word of encouragement, a reminder that they are blessed?
• What small act of kindness can you do today to lighten someone else’s load?
• How can you, like Mary, choose to rejoice in the story God is writing, even if you don’t fully understand it yet?

Let’s not let this season pass by in a blur of busyness and consumption. Let’s be intentional about living out the message of Christmas—not just in words, but in actions. Let’s be the hands and feet of God in a world that so desperately needs to know His love.

This Christmas, let’s remember that we are part of a much greater story. And when we trust God, when we open our hearts and our hands to others, we become living proof of His love.

The story God is writing isn’t just about Mary or Elizabeth or even Jesus—it’s about us, here and now. It’s about what we do with the time and the gifts we’ve been given.

So let’s make this Christmas count. Let’s give, let’s love, let’s serve. And let’s trust that every small act of kindness we do is part of something so much bigger than we can imagine.