Fighting Back with Victory Gardens Amid Crisis: A Tool for Self-Sustainability and Resistance

Victory gardens have historically emerged during times of crisis, including wartime, to alleviate food shortages. Amidst the US-China trade war and high grocery prices, Canadians are reviving the tradition of victory gardens to fight back against US tariffs and threats to Canada's sovereignty. By growing their own food, individuals can contribute to self-sustainability and assert their independence from external economic pressures.

Canadian businesses are grappling with the complexities of a recent measure that temporarily exempts certain U.S. imports from Canadian retaliatory tariffs. The temporary exemption, introduced by Prime Minister Mark Carney's Liberal government on April 16, aims to provide financial relief to businesses by exempting a number of U.S. imports used in Canadian manufacturing, processing, and food and beverage packaging [1].

The exemption, which covers approximately $60 billion worth of U.S. goods, is intended to minimize the negative effects of surtaxes by carving out exemptions for importers in public health, health care, public safety, and national security. However, the broad room for interpretation and lack of clarity in its administration have created confusion among businesses [1].

Trade lawyers have highlighted the challenges businesses face in understanding their own imports and determining eligibility for the exemption. Jonathan O'Hara, an international trade lawyer at McMillan LLP, noted that even sophisticated companies are struggling with the issue, with hundreds of thousands of dollars at stake [1].

The exemption's scope includes inputs used in manufacturing and processing, such as chocolate chips for cookies, but excludes finished packaged goods unless they are repurposed for further manufacturing. Indirect inputs like lubricants, fuel, and protective equipment are also murky in terms of eligibility [1].

The confusion reached a fever pitch in early May following a report from Oxford Economics, which claimed that the six-month exemption would cover about 97% of the other $59.8 billion worth of goods previously facing countertariffs. This report suggested that the Canadian effective tariff rate increase on the U.S. would be nearly zero in Q2 and Q3 [1].

However, the report's findings were disputed by businesses and trade experts. William Pellerin, an international trade partner at McMillan LLP, noted that the report's conclusions were inconsistent with what his firm was seeing from clients, some of whom were still paying tens of millions of dollars in tariffs [1].

In response to the report, Finance Minister François-Philippe Champagne clarified that 70% of the tariffs are still in place, contradicting the report's broad interpretation [1].

Despite the confusion, the exemption is expected to provide some relief to consumers, as indirect tariffs were of significant concern for food prices. However, tariffs remain on thousands of products imported from the U.S., and consumers can expect to continue seeing tariff-related price increases on approximately 6,000 items [1].

In the midst of these challenges, Canadians are reviving the tradition of victory gardens to fight back against U.S. tariffs and threats to Canada's sovereignty. By growing their own food, individuals can contribute to self-sustainability and assert their independence from external economic pressures.

References:
[1] https://www.theglobeandmail.com/investing/personal-finance/article-canada-countertariffs-businesses-tariffs-exemptions/