Aug 27, 2026
Municipal Information Network

Municipal Information Network
“The Dumbest Trade War”
By Gord Hume

August 27, 2026

"Trump's decision to escalate a tariff brawl with Canada makes no economic or political sense."

This headline from the Wall Street Journal neatly sums up the situation we find ourselves in today. But we are in it. And Canadians are ready for the fight.

Of all the millions of words already written about this senseless war, few have focused on where and who will be most affected, and that is the people and businesses on the Main Streets and suburbs of our towns and cities across Canada. Municipalities are about to become a triage unit.

Mayors and councillors must play a critical role in this fight. Local leadership is required. They must help citizens understand their new roles in our altered landscape:

For example:

  • Cheering for Canada good; booing the US national anthem, bad.
  • Welcoming American tourists with a friendly handshake and a smile, very good; vacationing in Canada themselves, even better.

Our fight is not with the American people. It is with a very few temperamental men temporarily in power in Washington, DC. 

I hope Canadian municipalities will continue to celebrate shared events with their traditional US counterparts. Many of those carnivals and celebrations go back generations. The point is simply that at some time sanity will return and this tariff war will end, and we will return to our friends.

In the interim, Canadians are in a mood to fight the tariffs, President Trump, and his ridiculous threats. Rename Lake Ontario as Lake America? HA! Never going to happen, but it shows the level of his flailing desperation after Prime Minister Carney stood up to the bully and punched back. 

There is going to be pain. Again, the impact will be in our municipalities as businesses face fiscal dangers and consumers pay some higher prices. Affordability remains a problem for families. The $27.6B tariff on US products will have a boomerang cost. The federal government's initial commitments of $7.5B to support business and workers impacted by the tariffs will provide some assistance. But the truth is, some businesses will close; some employees will be laid off. Some families will be desperate.

That is when municipal governments must be there to assist. There are lots of things municipalities can do. A commitment to buy Canadian goods and services. Partner with local universities, hospitals and other major public institutions to create stronger buying blocs and supply chains. Reduce rec fees so families can still afford to send their kids to swim class and soccer games. Support local retailers, particularly small businesses, which will be the most vulnerable. Consider deferring some business taxes or municipal permit fees. Push Premiers to finally end interprovincial tariffs.

Get creative, as so many municipalities did during COVID—letting restaurants do patio service on sidewalks, for example. Work with BIAs. Do civic job fairs. Make provisions for easy access to shops when roadwork is being done. Mentorship programs for immigrants looking for work. Offer part-time jobs (with union agreement) for people wanting to learn skilled trades. 

There are lots of ways civic governments in Canada can assist local businesses and families during this difficult time. Local government is the closest to its people, and now is the time to prove how nimbly city hall can respond to the needs of its community.

Every economist believes trade wars are self-destructive. Everybody hopes this ridiculous trade battle will end soon—maybe days, hopefully weeks, surely not months but who knows? Canada is not negotiating with a White House that has demonstrated skill and tact in global economic matters.

To every council in the 4,000 municipalities across our great country, step up. Be strong. Be creative. Be ambitious. Be supportive.

Canada is a unique nation. It is worth preserving. To do that we must defend our sovereignty in this "Dumbest Trade War".

For more information

Municipal Information Network
Adresse: 475, Montée Masson #102
Mascouche Quebec
Canada J7K 2L6
www.municipalinfonet.com
Gord Hume
gordhume@municipalinfonet.com
http://www.gordhume.com
519-657-7755

Gord Hume is recognized as one of Canada's leading voices on municipal government and is an articulate and thoughtful commentator on civic government and community issues. He is a very popular public speaker, an advisor to municipal governments, and a respected and provocative author.

Gord was elected to London City Council four times. He has had a distinguished career in Canadian business, managing radio stations and as Publisher of a newspaper. Gord received two “Broadcaster of the Year' awards. He is now President of Hume Communications Inc., a professional independent advisor to municipalities.