by Nick Gier, Professor Emeritus, University of Idaho
Canada’s playbook transforms (Trump’s) tariffs from a tool of retaliation
into a (Canadian) lever of strategic resilience and foreign policy muscle.
—The Canadian Press, July 13, 2025
Six months ago, the Danish government opened back channels to negotiate with the Trump administration about military and economic issues regarding Greenland. The Danish government, which controls foreign policy and defense for the world’s largest island, recognizes new security threats in the arctic from Russia and China.
The Danes proposed an expansion of its air base in Thule and they welcomed more U.S. involvement in oil and mineral exploration in Greenland. Instead, Trump repeated his desire to buy Greenland and at a recent hearing in the Senate, Defense Secretary Pete Hegseth refused to rule out military force to take over the island.
In late March Vice-President JD Vance and his wife Usha were forced to limit their trip to Greenland to three hours at the Thule base, because Trump’s aggressive actions did not sit well with the native Greenlanders who insisted that their home is not for sale. The Second Lady’s plans to officiate at a dog sled race and make home visits were summarily cancelled.
In an address to a joint session of Congress on March 4, Trump promised Greenlanders: “We will make you rich.” It is clear, however, that these proud people would rather have respect, not money. As part of the Danish welfare state, Greenlanders already have a standard of living higher than Great Britain, France, and Japan.
Every Greenlander has universal health care, paid maternity leave, and child support. (Alaska’s natives would be envious). Just like Danish students, Greenlanders have tuition-free higher education and are given stipends of $900 per month if they keep their grades up.
Canada treats Greenland with respect, and Toronto based Greenland Resources Inc. now has permission to mine molybdenum and magnesium in Eastern Greenland. As part of Canada’s recent move away from the U.S., the European Union will now have exclusive access to this molybdenum, an essential ingredient in making steel.
The Canadian firm Amaroq is expanding its gold mine in Nalunaq, Greenland, and this precious metal is also bound for Europe. The British company GreenRoc has discovered some of the purest graphite deposits at its mine in Amitsoq, Greenland.
High grade graphite is an essential ingredient in the anodes in electric vehicle (EV) batteries. According to business experts at Bloomberg, Canada now has “outperformed China” in its ability to compete in the world’s EV battery supply chain.
The report continues: “As a global mining powerhouse, Canada has extensive mining experience to supply battery-grade materials” to their factories. Canada also builds EV electric motors, so Trump’s tariffs may undermine America’s production in this area.
The Rio Tinto mining company has received a government grant of $1.5 billion to upgrade Quebec’s aluminum smelters. Canada is the world’s fourth largest aluminum producer, and the plan now is to dramatically increase aluminum exports to Asia and Europe.
Canada supplies 44% of our aluminum and this strategic rerouting of this essential metal will leave American factories in the lurch. Prices for domestic aluminum “premiums” have already increased 54% and this will add to the cost of American cars and planes.
Canada accounts for 20 percent of America’s imported steel, and Trump’s new 50% steel tariff will cause Canada to seek markets elsewhere. In the meantime, U.S. steel prices will increase and it is predicted, for example, to add $8,000 to each new Ford truck.
As a result of Trump’s aversion to NATO, the EU is planning to produce 65% of its own weapons in Europe itself rather than relying on a now unpredictable U.S. Joining in this effort, Canadian Prime Minister Mark Carney has announced that his air force might buy Swedish fighter jets instead of acquiring more F-35s from Lockheed Martin.
The World Travel and Tourism Council has predicted that Trump’s trade war may cost the U.S. $29 billion in international tourist revenue. An estimated 35,000 Canadian cars are no longer crossing the Peace Bridge to Buffalo, NY, and this has resulted in a loss of $5 million in lost retail revenue in one month alone.
Canada’s Mark Carney is proceeding at great risk, but he has no choice except to forge relations with new trading partners. Canada’s investments in the U.S. amount to $762 billion as opposed to $100 billion in Europe. As this realignment moves forward, Canada’s economy will indeed suffer, but an economically illiterate Trump does not realize how his tariff mania will also make “America Less Great.”
UI emeritus professor Gier celebrated Canada’s sesquicentennial in 2017 by writing a tribute. Read it at nfgier.com/?s=canada. Email him at ngier006∂gmail.com.