By Ron Pulcer
In December, I wrote about President Trump’s tariff threats (“Tariffs are weapon of math destruction”). Tariffs are effectively a sales tax on products from other nations, typically for specific industries. If you don’t like Vermont’s 6% sales tax plus 1% local option tax for education, you won’t like the Trump tariff tax either. If you have 401K retirement savings, you won’t like TTT, given recent stock market volatility.
As a 30-year resident of Vermont, I agree with the Rutland Herald Feb. 22 editorial (“Northern exposure”), especially the conclusion: “Vermont and Quebec maintain a mutually beneficial relationship. That shared border — and similar interests — make us crucial partners for each other. Anything that compromises that should make us all mad.”
I’m actually more sad than mad. I’ve lived most of my life in Michigan, a close neighbor with Ontario. Those shared borders are the Great Lakes and connected waterways. Similar cross-border connections apply to the Michigan and Ontario relationship. Three generations of my family, including myself, have worked, or currently work, in the auto industry. Yes, I’m also mad.
President Trump attended Wharton Business School. He says he wants to bring manufacturing back to America. Fine, but apparently Trump didn’t learn the history of General Motors in college. William Durant and Samuel McLaughlin were, respectively, the biggest carriage builders in the United States and Canada in the early 1900s. In 1908, Durant and McLaughlin started General Motors Holding Co.
General Motors of Canada Ltd. was formed in 1918 by the merger of McLaughlin Motor Co. with Chevrolet Motor Co. of Canada. It was incorporated as a wholly owned subsidiary of American-owned General Motors Corp. By 1921, GM of Canada was building Buicks, Oaklands and Oldsmobiles. Canada has had GM operations in Oshawa, St. Catharines, Ingersoll and Windsor over the decades.
Then there’s the Ford- and former Chrysler-related connections with Canada, plus the hundreds of parts producers whose trucks crisscross the border each day.
Decades before NAFTA and USMCA, the U.S. and Canada signed the Automotive Products Trade Pact of 1965, which removed duties on most auto parts. The offshoring of auto plants to Mexico starting in the 1990s was a separate issue.
Tesla’s supply chain is almost 40% from China. Much of Elon Musk’s net wealth is based on Tesla’s stock valuation. Musk helped fund Trump’s 2024 campaign (>$250M). The Trump tariff tax is negatively impacting the stock market, including TSLA. My question: Is Trump trying to help Musk and Tesla by purposely hurting U.S. and Canadian EV competitors?
On my last trip west through Ontario in late January to visit family, it was snowing as I drove from London to Sarnia. I felt like I was in a herd of trucks. On the other side of the divided highway was a similar parade of trucks. In Sarnia, I passed by the two right truck lanes that were backed up for 4-5 kilometers. It took me a half-hour to cross the bridge and get through Customs. While on the Blue Water Bridge, I enjoyed the view of Lake Huron where it funnels into the St. Clair River. Trucks were likewise backed up on I-94 for 2 miles outside Port Huron.
This scene aptly represents the amazing economic partnership of America and Canada. About 65 miles to the south, a similar scene plays out between Detroit and Windsor. It makes me proud to see this commerce and cooperation between Michigan and Ontario. Sadly, Trump’s trade war on Canada is causing the opposite.
The Rutland Herald editorial could be a template for more essays about the strong connections between the U.S. states from Washington to Maine with their Canadian neighbors. Of the northern border state governors, six are Democrats and five are Republicans. Trump’s tariff tantrum is hurting people across the political spectrum.
While President Trump threatens Canada with tariffs and takeover, the leaders in Ottawa have responded in a tough but more nuanced fashion. Some premiers (Ontario and Alberta) have also been vocal. In contrast, the response from governors has been somewhat muted, at least publicly.
Perhaps one way to turn down the temperature of this impending trade war is for governors and premiers to stand together. I recently called Gov. Phil Scott’s office and made a suggestion. Governor Scott and Quebec Premier François Legault could make joint statements (press conference, letter) explaining the importance of our longtime, mutually beneficial, economic relations, and call for tariffs to be lifted or cease.
In the meantime, Governor Scott could make “executive orders” that list specific product and industry exemptions to the tariffs for Vermont and Quebec. I don’t know Canadian law, but perhaps a similar approach could be taken.
If such governor executive orders of tariff exemptions were made, it might lead to lawsuits from the Trump administration. But then again, when has Donald Trump had any respect for the rule of law? Elon Musk and DOGE are not following the Constitution.
Imagine if all the governors of border states did likewise? Oppose the Trump tariff tax.
Ron Pulcer lives in Rutland Town.