Tariffs on Canada are a bad deal for Hawaii’s economy

As consul general of Canada for Northern California and Hawaii, I have traveled across Hawaii and have engaged with businesses, politicians and citizens throughout the state.

Everywhere I go, my message is the same: Canada is the United States’ largest trading partner and most steadfast ally. We have one of the longest, most peaceful and mutually beneficial relationships of any two countries in the world. Canada and the U.S. share similar values, and Canadian soldiers have served alongside Americans in some of the most difficult places in the world.

In Hawaii, many are well aware of the strength of the security and defense relationship between Canada and the United States. Canadians are embedded in the U.S. military across the U.S. and around the world.

Canadians have served alongside U.S. forces as reliable defense partners through World Wars I and II, the Cold War, Korea, Balkans, the Middle East, Afghanistan and the fight against terrorism.

That is why the decision by the U.S. administration to impose tariffs on Canadian aluminum and steel, under pretext of a 232 national security provision, is so perplexing and hurtful to Canadians. The idea that Canada could be considered a national security threat to the United States is inconceivable, disconcerting — and as Prime Minister Justin Trudeau put it — insulting.

The facts are clear: The United States has a U.S. $2 billion surplus in steel trade with Canada. Canada buys more American steel than any other country in the world, representing half of all U.S. steel exports. These tariffs will be harmful to industry and workers on both sides of the border, disrupting supply chains that have made North American steel and aluminum more competitive around the world. They will unravel North America’s integrated economy and jeopardize millions of American jobs.

These tariffs will be felt in Hawaii. Our economies are too intertwined for this decision not to significantly affect local communities. Hawaii exported $25 million in goods to Canada last year and more than 42,000 jobs in Hawaii depend directly on trade and investment with Canada. Canadian visitors to Hawaii spend over $1.3 billion annually.

Canada is challenging these illegal and counterproductive measures under NAFTA and at the World Trade Organization, and will take retaliatory measures on July 1. For Hawaii, these countermeasures would affect over $1.2 million in trade. Exports of Hawaiian coffee to Canada will be among the most significantly affected. The countermeasures will remain in effect until the U.S. removes its tariffs on Canadian aluminum and steel.

The relationship between Canada and the United Stated is deep, multifaceted and complex. But one thing is true: for the last 150 years, our spirit of partnership has been unparalleled. Targeting Canada for tariffs runs counter to what has underpinned the economic prosperity and success of our relationship for the last century.

Let me be clear: Our disagreement is not with the American people. I remain optimistic that with the support and voices of our partners in Hawaii and across the U.S., common sense will prevail.

Rana Sarkar is consul general of Canada for Northern California and Hawaii, and a member of Canada’s NAFTA advisory council.