Steve Forbes Warns Trump on Fox About Cost of Canada ‘Economic War’: ‘These Threats Just Create Uncertainty’

Forbes Media chairman Steve Forbes warned of the dangers that could be headed the United States’ way if new tariffs lead to an “economic war” with Canada.

Forbes, who has supported President Donald Trump, joined Ashley Webster on Fox Business’ Varney & Co. on Monday and he cautioned the administration on the deployment of tariffs, which he denounced as another word for taxes.

“Canada now planning retaliatory tariffs on the US. Steve, are we headed for economic war with Canada?” Webster asked, referring to Canada’s promise to match the U.S. 50% tariffs “dollar for dollar.”

Forbes said:

Let us hope not because both countries are very dependent on that trade. And the fact of the matter is in terms of the trade deficit that comes just from heavy oil — crude oil that we export from Canada for our refineries — they can’t use any other kinds of crude. And so you take out that critical crude, we actually have a surplus with Canada for those who take trade deficits and surpluses so seriously. So I think that they’re going to a way to tamp this thing down, but these threats just create uncertainty which hurts economic growth and investment.

So remember, tariff is another word for tax and putting taxes on products means there’s less economic activity, period. Republicans should know that.

Trump has faced bipartisan backlash over the announcement of tariffs on Canadian imports like steel. The tariffs were imposed after trade talks fell apart. Trump has accused Canada of “ripping off” the U.S. with their own tariffs.

Close Trump ally Stephen Moore also appeared with Webster on Monday and slammed the newly-imposed tariffs, arguing it’s the wrong time to start such a fight when the U.S. is already dealing with the Iran war.

“Do I think now is a good time to fight a trade war with Canada?” he said. “Probably not because as I look at the numbers, I was just looking at the numbers, Ashley, right before I came on the show, commodity prices are rising right now in the U.S. That’s a bad sign. That’s an indication that inflation continues to tick up.”

Watch above via Fox Business.

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