Unfriendly Neighborhood
The United States and Canada are rapidly entering a trade war, as negotiations between the leaders of the two countries broke down last week. After the talks broke off, U.S. President Donald Trump allowed the previously announced 50% tariffs on $20 billion worth of Canadian goods to go into effect, then threatened an additional round of tariffs on the automobile and steel industries. Canada Prime Minister Mark Carney accused the U.S. of treating Canada as a “subsidiary” and responded by announcing retaliatory tariffs effective September 8, 2026.
Analysis and eternal perspective: It is another version of a familiar story as U.S. President Donald Trump continues his strategy of using tariffs to renegotiate new deals with trading partners. Each iteration of this strategy is controversial and surfaces many different views on trade, tariffs, and economic policy, but this particular negotiation has the potential to be especially disruptive for both American and Canadian consumers. The proximity, lengthy shared border, and long allied history of the two countries all contribute to a particularly consequential moment in the relationship.
Canada is the second largest trading partner for the U.S., making up approximately 13% of U.S. trade, and the U.S. is by far the largest trading partner for Canada, accounting for approximately 76% of all Canadian trade. The sheer size of this economic activity is likely to mean consumers feel the price pressure of these tariffs sooner and more significantly than has been the case for recent trade negotiations.
We as The Equipped family can have peace in our spirits through turbulent economic times and should intentionally prioritize two biblical principles even in the face of difficult cultural and economic forces:
1) “If it is possible, as far as it depends on you, live at peace with everyone” (Rom. 12:18). You likely don’t have a direct say in tariff policy. But you can choose to prioritize relationship with your hemisphere neighbors as well as your neighbors with a different view on trade and tariff policy.
2) “Store up for yourselves treasures in heaven” (Matt. 6:20). Yes, a story like this may impact your earthly storehouse, but it cannot touch what you’ve laid up in heaven, and “where your treasure is, there your heart will be also” (Matt. 6:21).