Dust-ups with our North American trading partners pop up periodically, especially when there is global financial trouble. They can be acrimonious and strain relationships, as President Donald Trump is learning.

Faced with excessive federal spending and our skyrocketing national debt ($36.6 trillion), Trump relaunched his “Make America Great Again” initiative. It is a blueprint to stimulate job creation in America’s private sector and government efficiency. He wants investments in domestic manufacturing plants, fairer trade with more equitable tariffs and closed borders to fentanyl smuggling, human trafficking and illegal immigration. 

Trump’s crisis is like what Barack Obama experienced during his first year in office. In 2008, the world economy was in the tank. The 2007-08 global financial crisis brought about by risky lending practices and inflated mortgages triggered the Great Recession. It was the most severe downturn since the 1929 Wall Street crash and Great Depression.

Obama developed a massive $787 billion federal stimulus program to fund government projects. Those projects must have materials and equipment which were “Made in America.” Our cities, counties and municipal authorities – such as sewer districts – were included. 

A critical flaw in Obama’s plan surfaced in construction of new wastewater treatment plants which, in 2008, were worth $10.18 billion. The new facilities integrated equipment and construction materials from other countries, particularly Canada. 

If Americans excluded Canadian products from our facilities, Canada’s leaders would retaliate with “Buy Canada” language for their plants. U.S. companies and their workers stood to lose $6.18 billion. Canadian companies would forego $4 billion. 

Doug Conant, then CEO of Campbell Soup Co., reported 4,000 shipments of ingredients for its food products cross from our country into Canada each day and 3,500 come from Canada into the U.S. Some vegetables cross the border twice when processed in both countries before being packaged and distributed globally.

What started out as a promising idea was unworkable. As more exemptions were added, “Made in America” looked like a slice of Swiss cheese. 

The fact is the world’s economy is linked. The economies of Canada, Mexico and the United States are interwoven and whatever actions government takes on one side of the border causes an equal, if not greater reaction, on the other side.

Since Washington is a border state, our state’s economy is closely tied to British Columbia and trade barriers take their tolls. 

According to recent data from the Border Policy Research Institute at Western Washington University, Canada is the state’s largest partner for imports. Canada is also the state’s second-largest export market, behind China. 

In 2023, Washington’s top three imports from British Columbia were oil and gas ($3.3 billion), lumber ($653 million) and electrical power generation ($317 million). In the other direction, Washington’s top three exports to B.C. were electrical power ($974 million), refined petroleum ($638 million) and seafood products ($247 million).

Unbundling that supply chain has unintended consequences as Trump is learning from auto makers. Thankfully, he postponed 25% tariffs on Mexico and Canada until April.

Trump is correct to focus on growing our private sector by improving opportunities to reshore American manufacturing, cutting government red tape, lowering costs and taxes and streamlining permitting. 

His actions need to consider tariff impacts on small family-owned manufacturers, who import and export, as well. The Small Business Administration reported it comprises over a quarter of our manufacturing base and employs a third of our workforce.

Fortunately, Trump realizes that consumers control the marketplace, not government preferences and subsidies. When consumers choose American-manufactured products, they support American jobs – the more products purchased, the more jobs created.

While harsh talk may be necessary to stimulate initial discussions, fence-mending and practical solutions are needed now within our North American neighborhood. 

Don C. Brunell is a business analyst, writer and columnist. He can be contacted at [email protected].