Thorne&Advisor
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Canada Proves the Point of America First
America First is not nostalgia. It is a return to an older American tradition, running from Alexander Hamilton to Henry Clay, that starts from a simple premise: the United States should shape its own development, not let rival powers shape it for us.
Canada offers a revealing case. Ottawa protects strategic sectors at home, not just banking through its tightly controlled oligopoly, but also agriculture through supply management. Yet Canadian firms still expect broad access to the American market. When President Trump raises those imbalances, he is pointing to the central issue. The timing of the latest tariff announcement, just before the premiers’ meeting in Charlottetown, made the point even clearer.
Even Adam Smith fits this tradition better than many of his modern disciples admit. The Theory of Moral Sentiments is about the moral and institutional framework that orders a society. The Wealth of Nations explains how, once those rules are in place, markets can allocate resources productively. Hamilton and Clay understood that before markets can work well, a nation must decide whose rules will govern them.
That is what much of the economics profession still misses. The global economy is, in the end, a closed economy. Every surplus has a matching deficit. Every export led model requires someone else to absorb the shortfall in demand. Once that truth is recognized, Jamieson Greer’s warning becomes obvious: if America refuses to make policy, it will not inhabit some neutral free market equilibrium. It will become a policy taker, absorbing imbalances and industrial distortions engineered abroad.
That is exactly what happened over the last generation. Washington preached openness while rivals managed exchange rates, subsidized manufacturing, and captured strategic supply chains. We were told the resulting deindustrialization was simply comparative advantage at work. It was not. It was the predictable result of allowing more mercantilist states to shape both their own imbalances, and ours.
Scott Bessent is right that standards are strategy, and President Trump’s tariffs make the same point in harder form. In a global economy that functions as one closed system, tariffs, standards, and legal frameworks all shape where capital flows, which industries survive, and who must adjust. That is what Hamilton and Clay understood, and it is what America First is trying to recover.
The real question is not whether the United States will live under an industrial policy, but whether it will be its own, or someone else’s.
Rapid Response 47@RapidResponse47
Fact Sheet: President Donald J. Trump Imposes Additional Tariffs on Canada whitehouse.gov/fact-sheets/20…
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If President Trump really wanted to play hardball with Canada, he would focus on Canadian Banks.
United States Trade Representative@USTradeRep
Today, Ambassador Greer issued a statement after President Trump exercised his authority under Section 338 of the Tariff Act of 1930 to impose additional 50% tariffs on certain Canadian goods to offset Canada’s discriminatory treatment of U.S. exports. ustr.gov/about/policy-o…
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