Canada has launched an advertising campaign in the U.S. called “Tariffs are a Tax” to counter former President Donald Trump’s protectionist trade policies, particularly his threats to impose new tariffs on Canadian goods if he wins the 2024 election.

Key Points of the Campaign:

1. Target Audience: The ads are running in key U.S. states, including swing states and areas heavily impacted by trade with Canada.
2. Message: The campaign argues that tariffs act as a hidden tax on American consumers, raising prices on everyday goods like cars, food, and energy.
3. Goal: To pressure U.S. lawmakers and voters to oppose new tariffs, emphasizing the economic harm they could cause to both countries.

Background:

• Trump has floated the idea of imposing 10% across-the-board tariffs on all imports if re-elected, which would heavily impact Canada, the U.S.’s second-largest trading partner.
• Canada has strongly opposed such measures, warning of potential retaliatory actions, as seen during the 2018-2019 U.S.-Canada steel and aluminum tariff dispute.
• The campaign is part of Canada’s broader strategy to protect its trade interests, particularly under the USMCA (U.S.-Mexico-Canada Agreement).

Why It Matters:

• Economic Impact: Canada-U.S. trade is worth over $1 trillion annually, and new tariffs could disrupt supply chains and increase costs.
• Political Strategy: By framing tariffs as a consumer tax, Canada hopes to sway U.S. public opinion against protectionist policies.
• Potential Retaliation: If Trump imposes new tariffs, Canada may respond with countermeasures, as it did in 2018 with tariffs on U.S. products like whiskey and ketchup.

This campaign reflects Canada’s proactive approach to defending its economic interests amid potential U.S. policy shifts.

Canada launches ‘tariffs are a tax’ ads in U.S. to push back on Trump

The federal government on Friday launched a new ad campaign in the U.S. to remind Americans of the impact of U.S. President Donald Trump’s tariffs on Canadian goods in the latest salvo in the deepening trade war.

The digital billboards read “Tariffs are a tax on hardworking Americans” and will be installed in Washington, D.C., and cities like Miami, Philadelphia, Detroit and Atlanta that Ottawa says would be “hardest hit” by the tariffs “due to their heavy reliance on trade with Canada.”

Foreign Affairs Minister Melanie Joly told CNN on Friday the “huge billboards” will be erected along major highways in 12 U.S. states overall, with a particular focus on “red” Republican-led states.

“We need to send a message to the American people for them to understand what’s at stake,” she said. “This is really going to hurt their livelihoods and have an impact on their wallets.

“My message to hardworking Americans is please, talk to your senators, talk to your House representatives, to your mayors, to your governors: send a message that you don’t want these tariffs, because no one will win in this approach coming out of the White House.”

Polling suggests Trump’s tariffs on Canada are not popular with the American people.

Leger found this week that more than half of Americans surveyed believe tariffs will negatively impact the U.S. economy, while 72 per cent said they are worried about higher grocery prices due to the tariffs.

A majority of Americans, meanwhile, believe Trump’s economic moves have been too “erratic,” according to a Reuters/Ipsos poll released last week amid turmoil in the U.S. financial markets blamed on new and threatened tariffs.

A February report from the Peterson Institute for International Economics estimated Trump’s 25 per cent tariffs on goods from Canada, Mexico and China, with lower 10 per cent levies on Canadian energy, would cost the typical American household over US$1,200 a year.

Trump has since exempted auto parts and other goods traded under the Canada-United States-Mexico Agreement from those tariffs after they took effect on March 4, as well as lowered duties on Canadian potash to 10 per cent.

Trump and the White House have dismissed the idea that tariffs on foreign imports will see costs passed on to consumers. White House press secretary Karoline Leavitt claimed earlier this month that tariffs amount to a “tax cut for Americans,” claiming they will ultimately make American-made products cheaper as domestic production increases.

Canada’s embassy in the U.S. has been promoting facts on the economic benefits of the two countries working together for weeks on social media since Trump’s tariffs took effect.

Trump: ‘I mean that’ Canada should be U.S. state

A separate social media ad campaign that launched Friday in Canada “will aim to unify and rally Canadians to be loud and proud in their patriotism, and choose Canada in everything they do,” a government statement said.

“The more we choose to stand up as our most flag-flying, maple leaf-buying, local adventuring selves, the more we are the true north, unbreakable, strong and free,” the English-language ad voiced by Rick Mercer says. The French-language ad is voiced by actor Remi-Pierre Paquin, and both versions contain music from Vancouver band Japandroids.

The ads were launched as Canada continues to push for the Trump administration to drop its March 4 tariffs on most exports to the U.S., which Trump has said are meant to pressure Ottawa to combat fentanyl and improve border security, as well as 25 per cent duties on steel and aluminum.

Trump has vowed to impose additional, “reciprocal” tariffs globally on April 2, which will match tariffs set by foreign trading partners. Canada is readying additional retaliatory tariffs on U.S. goods for that date, even as Canadian officials negotiate with the Trump administration on potential exemptions.

The federal government is also seeking to rally Canadians against Trump’s ongoing threats to annex Canada and make it the 51st U.S. state, which Trump repeated again this week.

“When I say they should be a state, I mean that,” he told reporters in the Oval Office on Friday, repeating familiar grievances on trade and military spending. “I really mean that, because we can’t be expected to carry a country that is right next to us on our border.”

He also once again called the Canada-U.S. border an “artificial line” and mused that removing it would create a “beautiful land-mass.”

Earlier this week, in an interview with Fox News, Trump called Canada “one of the nastiest countries to deal with” in trade negotiations under former prime minister Justin Trudeau, and again said Canada is “meant to be our 51st state.”

Joly told CNN that Trump’s annexation talk is “absurd” and further harms average Americans.

“Who are the first impacted by all this rhetoric and all this nastiness? It’s ultimately American people themselves,” she said.

That said, is the ‘tariffs are a tax’ ads effective so far?

As of now, it’s too early to definitively measure the effectiveness of Canada’s “Tariffs are a Tax” ad campaign in shifting U.S. public opinion or policy. However, we can assess its potential impact based on strategy, messaging, and past precedents.

Signs the Campaign Could Be Effective:

1. Strategic Targeting
   • The ads are running in key swing states (e.g., Michigan, Pennsylvania, Ohio) and industrial regions where tariffs could hurt jobs and consumer prices.
   • By focusing on American voters’ wallets, Canada is leveraging domestic U.S. pressure against Trump’s tariff threats.
2. Strong Messaging
   • The “tariffs are a tax” framing resonates with economic concerns, especially amid inflation.
   • Similar arguments worked in 2018-2019, when U.S. businesses and lawmakers pushed back against Trump’s steel/aluminum tariffs after Canadian retaliation hurt U.S. exporters.
3. Bipartisan Pushback in the U.S.
   • Some Republicans (e.g., Sen. Pat Toomey, pro-trade Democrats) have historically opposed sweeping tariffs, arguing they harm consumers.
   • If the ads amplify concerns among GOP lawmakers in trade-dependent states, Trump could face internal resistance.

Challenges & Limitations:

1. Trump’s Base Loves Tariffs
   • His core supporters view tariffs as “tough on China” and a way to revive U.S. manufacturing, even if they raise prices.
   • The ads may not sway his voters but could influence moderates.
2. Canada’s Limited Influence on U.S. Politics
   • Foreign ad campaigns rarely shift elections, but they can shape elite opinion (e.g., business groups, Congress).
   • The U.S. Chamber of Commerce and auto industry have opposed Trump’s tariff plans, which aligns with Canada’s messaging.
3. Retaliation Risks
   • If Trump sees the ads as foreign interference, he could double down on anti-Canada rhetoric (as he did in 2018).

Early Indicators to Watch:

• Media & Political Reaction: Are U.S. lawmakers or commentators referencing the campaign?
• Polling Shifts: Are voters in battleground states becoming more skeptical of tariffs?
• Industry Response: Will U.S. business groups (e.g., automakers, agriculture) lobby harder against new tariffs?

Historical Precedent: 2018 Tariff Fight

• Canada’s retaliation (tariffs on U.S. bourbon, ketchup, etc.) worked—Trump eventually lifted most steel/aluminum tariffs.
• The new campaign is preemptive, trying to avoid a repeat battle.

Bottom Line:

The campaign is a smart defensive move, but its success depends on:

1. Whether it mobilizes U.S. business and political pushback.
2. Whether Trump moderates his stance if he senses electoral risk.

If the ads gain traction in U.S. media and are cited by anti-tariff lawmakers, they could have a meaningful impact.