Podcast Summary: The Daily – "Elbows Up: Canada’s Response to Trump’s Trade War"

Introduction

In the March 13, 2025 episode of The Daily, hosted by Kim Severson and Matina Stivas Gridneff from The New York Times, the focus is on the escalating trade war between the United States, under President Donald Trump, and Canada. This conflict has not only strained the economic ties between the two neighboring nations but has also ignited profound political and cultural shifts within Canada. The episode delves into how this trade war is reshaping Canada’s economy, politics, and national identity, providing listeners with an in-depth analysis of the unfolding crisis and its broader implications.

Background: Origins of the Trade Tensions

The trade tensions between the U.S. and Canada intensified with President Trump’s administration, which adopted a confrontational stance towards international trade agreements. Initial signs of strain appeared in early December when Canadian Prime Minister Justin Trudeau dined with President-Elect Trump at Mar-a-Lago. While the meeting appeared cordial on the surface, underlying tensions soon became apparent.

Matina Stivas Gridneff highlights, “Fox News is reporting that Trudeau warned Trump that his tariff proposal would kill the Canadian economy, to which Trump replied that Canada could then become the 51st state and that Trudeau could be governor” ([04:07]). This exchange marked the beginning of a more aggressive U.S. approach toward Canada’s trade policies.

Escalation: Implementation of Tariffs

By late January, the situation escalated as President Trump unequivocally threatened to impose tariffs on all Canadian and Mexican goods entering the United States. Given that approximately 80% of Canadian exports, including vital sectors like oil and gas, flow into the U.S., these tariffs posed a severe threat to Canada’s economy.

“This is a core existential economic relationship,” Matina explains ([06:27]). The tariffs could potentially derail Canada’s economic stability, forcing the country to seek alternative trading partners and reconsider its economic dependencies.

Canadian Public Response: Unity and Nationalism

The American tariffs and rhetoric ignited a wave of nationalism and unity across Canada. Canadians, traditionally perceived as amicable and accommodating, found themselves united against what they perceived as unwarranted aggression from their southern neighbor.

Matina observes, “We’re seeing by Canadian signs, grocers are putting up flags to tell consumers which products are made in Canada so that they can prefer them over American products” ([10:47]). This grassroots movement encouraged consumers to support domestic products, reflecting a broader societal shift towards self-reliance and national pride.

Notably, Matina recounts the emergence of overtly anti-American sentiments, including instances of Canadians booing the American national anthem at hockey games and expressing disdain towards prominent figures like Wayne Gretzky, who were seen as symbols of American influence.

Political Shifts: Revival of the Liberal Party and Rise of Mark Carney

The trade war had significant repercussions on Canadian politics, particularly for Prime Minister Justin Trudeau and the Liberal Party. Facing declining approval ratings and the threat of losing power to the Conservatives, the Liberal Party experienced an unexpected revival fueled by the public’s anti-Trump sentiments.

Matina explains, “Anti US Anti Trump sentiment is basically doing huge favors to the Liberal Party, even rehabilitating the image of Justin Trudeau” ([14:33]). As Trudeau prepared to resign, the party rallied around Mark Carney, a seasoned economist and former governor of the Bank of Canada and the Bank of England.

Mark Carney’s leadership signaled a strategic pivot for Canada. Despite being a political novice with limited public visibility, his reputation as a competent economic policy expert resonated with Canadians seeking stability amid the trade turmoil. Matina notes, “He thinks he knows what he’s doing, but Carney has a huge challenge in his hands” ([17:07]).

Strategic Reorientation: Diversifying Trade Partnerships

In response to the instability caused by U.S. tariffs, Canada began actively seeking to diversify its trade relationships. With the United States historically accounting for the majority of its exports, Canada recognized the urgent need to establish new economic partnerships globally.

Matina highlights, “Half of Canadians, according to a recent poll, want to even join the European Union” ([23:59]). This shift towards Europe and other international markets aimed to mitigate the risks associated with overdependence on the U.S. economy.

Additionally, Canada faced challenges with China, another significant trading partner, which had imposed tariffs in a bid to leverage the situation with the United States. This dual pressure from both the U.S. and China forced Canada to adopt a more strategic and multifaceted approach to its international trade policies.

Future Prospects: Rebuilding Trust and Redefining National Identity

The episode explores the long-term implications of the trade war on the Canada-U.S. relationship. Matina suggests that rebuilding trust will be challenging, given the economic damage and deep-seated distrust that has developed.

“It does feel kind of permanent,” she states ([24:55]). However, there remains a possibility for reconciliation under new leadership and revised terms that respect Canada’s sovereignty and economic interests.

Moreover, the trade war has sparked a broader reassessment of Canadian identity. There is an increasing emphasis on “a more assertive, and a prouder, more Canadian Canada” ([26:11]). This national introspection is driving efforts to strengthen domestic industries, invest in innovation, and redefine Canada’s role on the global stage.

Conclusion: An Assertive and Resilient Canada

The episode concludes with an optimistic yet cautious outlook on Canada’s ability to navigate the complexities of the trade war. While the immediate challenges are formidable, the crisis has also catalyzed significant political and economic reforms that could position Canada as a more resilient and autonomous nation in the future.

Kim Severson aptly summarizes the sentiment: “We will never be the same as friends” ([01:57]), encapsulating the profound and lasting impact of the trade war on the Canada-U.S. relationship. Despite the adversities, Canada’s unified response and strategic pivots underscore its determination to preserve national integrity and economic prosperity.

Notable Quotes:

• Matina Stivas Gridneff ([00:52]): “It feels like the vibe is changing and I am here to do a vibe check.”

• Matina Stivas Gridneff ([04:07]): “Canada could then become the 51st state and that Trudeau could be governor.”

• Matina Stivas Gridneff ([10:22]): “Elbows up, folks.”

• Matina Stivas Gridneff ([10:32]): “Ladies and gentlemen, Canada will never bend. We will never kiss the gangster's ring.”

• Matina Stivas Gridneff ([12:19]): “I think it's all of the above. It's anger. It's betrayal.”

• Matina Stivas Gridneff ([14:33]): “Anti US Anti Trump sentiment is basically doing huge favors to the Liberal Party, even rehabilitating the image of Justin Trudeau.”

• Matina Stivas Gridneff ([24:55]): “It does feel kind of permanent.”

• Kim Severson ([01:57]): “I don't think we'll ever be the same as friends.”

Final Thoughts

This episode of The Daily offers a comprehensive exploration of the multifaceted impact of the Trump administration’s trade policies on Canada. Through insightful interviews and expert analysis, listeners gain a nuanced understanding of the economic, political, and cultural transformations spurred by this international conflict. As Canada grapples with redefining its trade relationships and national identity, the resilience and adaptability of its people and leadership will be crucial in shaping the nation’s future amidst global uncertainties.