Focus on the BIG picture.
Wednesday, Jan 07, 2026
Outside the box.
Wall Street Journal Criticizes Trump's Trade War with Canada and Mexico
The Wall Street Journal warns that Trump's tariffs on Canada and Mexico may harm the U.S. economy and automotive industry.
In an editorial, the Wall Street Journal has sharply criticized President Donald Trump's decision to impose tariffs on Canada and Mexico, calling it 'the dumbest trade war in history.' The newspaper points out the disproportionate 25% tariff on the two U.S. allies, while China, the U.S.'s main rival, faces only a 10% tariff.
The editorial humorously references a quote by Bernard Lewis, noting, 'It is dangerous to be America's enemy, but it can be lethal to be its friend.'
The justification for the tariffs, as stated by White House spokesperson Carolyn Leavitt, was that Canada and Mexico 'allowed illegal drugs to flow into America,' but the Wall Street Journal notes that drugs have been entering the U.S. for decades and will continue to do so as long as there is demand.
The editorial also critiques Trump's statement, 'We don’t need their products.
We have all the oil we need; we have all the wood we need,' suggesting that Trump might believe the U.S. can operate as a completely self-sufficient economy, a policy known as autarky.
The article highlights the potential damage to the U.S. automotive industry, a sector closely tied to Canada and Mexico due to cross-border supply chains.
In 2024, Canada supplied nearly 13% of U.S. auto parts imports, while Mexico provided almost 42%.
The U.S. automotive industry contributed over 809 billion dollars to the economy in 2023, supporting nearly 9.7 million jobs.
The U.S. also exported cars and parts worth 86.2 billion dollars to Canada and Mexico that year.
The editorial warns of potential retaliation from Canada and Mexico, both of which have shown their ability to respond effectively to trade disruptions.
Canadian Prime Minister Justin Trudeau has already promised to retaliate dollar-for-dollar against U.S. tariffs.
The Wall Street Journal concludes by stating that none of these actions should have occurred under the US-Mexico-Canada Agreement (USMCA) negotiated and signed by Trump during his first term.
It asserts that the U.S. ignoring its trade commitments could undermine future international negotiations and damage relationships with allies.
The editorial humorously references a quote by Bernard Lewis, noting, 'It is dangerous to be America's enemy, but it can be lethal to be its friend.'
The justification for the tariffs, as stated by White House spokesperson Carolyn Leavitt, was that Canada and Mexico 'allowed illegal drugs to flow into America,' but the Wall Street Journal notes that drugs have been entering the U.S. for decades and will continue to do so as long as there is demand.
The editorial also critiques Trump's statement, 'We don’t need their products.
We have all the oil we need; we have all the wood we need,' suggesting that Trump might believe the U.S. can operate as a completely self-sufficient economy, a policy known as autarky.
The article highlights the potential damage to the U.S. automotive industry, a sector closely tied to Canada and Mexico due to cross-border supply chains.
In 2024, Canada supplied nearly 13% of U.S. auto parts imports, while Mexico provided almost 42%.
The U.S. automotive industry contributed over 809 billion dollars to the economy in 2023, supporting nearly 9.7 million jobs.
The U.S. also exported cars and parts worth 86.2 billion dollars to Canada and Mexico that year.
The editorial warns of potential retaliation from Canada and Mexico, both of which have shown their ability to respond effectively to trade disruptions.
Canadian Prime Minister Justin Trudeau has already promised to retaliate dollar-for-dollar against U.S. tariffs.
The Wall Street Journal concludes by stating that none of these actions should have occurred under the US-Mexico-Canada Agreement (USMCA) negotiated and signed by Trump during his first term.
It asserts that the U.S. ignoring its trade commitments could undermine future international negotiations and damage relationships with allies.
