the next step is realizing that responding with socialism by using subsidies to save canadian jobs is a better approach than generating a recession by responding with competition by using retaliatory tariffs is. with a caveat.
there has to be some reaction. but if they're going to punch us in the face, we shouldn't just punch them back. we could, for example, try to blow up their house, instead.
if we react by collectivizing the losses via a covid-like subsidy system and then sue them through the wto for unfair trade practices, they could even end up paying for it in the end. we could then even flip the script by trying to undercut their steel and lumber businesses through increased government subsidies, which could drive american businesses to lose market share in the united states itself. we could increase subsidies to dairy farmers. we could bring back the wheat board.
who pays for the tariffs? americans pay for the tariffs! that should be the goal of canadian government policy - to make sure americans get the bill for this, in the end, and not us. the best way to do that is to use socialism to collectivize the losses by shifting it to debt, and to avoid being competitive in trying to find a way to spread it out. we can't compete. the sprott guy is right; that's a dumb idea.
retaliatory tariffs should be restricted to things that hurt american policy objectives, like defence and medical spending. sanctions on uranium exports, for example, would be the kind of thing that we should do, while we really shouldn't tax ourselves to import ketchup or orange juice. parts of canada have a major scurvy problem. import taxes on orange juice is in truth an incredibly stupid idea.
i would normally strongly oppose subsidizing the tar sands, but it's a better idea to let trump increase gas taxes and socialize the losses than it is to try to prevent canadian crude from getting to american refineries. americans won't accept increases in gas prices for very long. they didn't vote for that. they'll throw the bums out in two years, and that would be a good outcome for canada.
if trump wants to charge americans more and increase inflation for american consumers, we should just let him do it with a minimal response - except things that specifically hurt american policy objectives like sanctions on uranium - and wait for the midterms. we shouldn't get into a fist fight with somebody that is stronger than us.