The United States and Canada maintain one of the world’s most significant bilateral trade relationships, with annual trade flows exceeding $750 billion in 2023, bolstering millions of jobs and deeply integrated supply chains across North America (U.S. Census Bureau, 2023). Yet, this partnership is overshadowed by Canada’s persistent protectionist tariffs, notably in agriculture (e.g., dairy tariffs up to 298%) and natural resources (e.g., softwood lumber disputes), which exact substantial economic costs on the United States (World Trade Organization [WTO], 2022). These tariffs, entrenched in decades of Canadian policy, restrict U.S. market access, disrupt supply chains, and undermine American competitiveness, costing industries billions annually.
This paper provides an examination of the historical evolution of Canadian tariffs, their multifaceted economic impacts on U.S. sectors like agriculture, manufacturing, and lumber, and the inherent unfairness they introduce into agreements such as the United States-Mexico-Canada Agreement (USMCA). Furthermore, it advances a detailed case for reciprocal tariffs as a strategic tool to not only counteract these imbalances and restore economic fairness but also enhance North American security and Arctic defense interests. By weaving together historical analysis, economic data, and security implications, this article underscores the urgency of addressing Canadian protectionism to preserve North American trade and defense cooperation’s integrity, mutual benefits, and strategic resilience.
