Across Canada, in coffee shops, at kitchen tables, on radio call-in shows, when speaking with neighbours and work colleagues and of course on social media the angst-ridden talk is ...
Tariffs are coming!
Tariffs are coming!
Tariffs are coming!
American politics tends to be characterized by theatrics; showmanship often takes precedence over substance. Donald Trump's threats, which aim to impose a U.S.-led world order by having countries bend to his will, he'll be imposing an across-the-board 25 per cent tariff on Canadian imports, has the feeling of setting the stage for a four-year "Will there be?" and "What next?" saga.
On the other hand, beneath the bravado and brazenness lies a potentially transformative force that could redefine Canada's consumer culture. Should Trump's tariffs come into effect, Canadians will suffer economic consequences and find themselves at an existential-like crossroads—similar to a reckoning—that forces them to question their spending habits and redefine their notions of needs versus wants.
Economic Fallout
Straight talk: a 25 per cent tariff on Canadian imports would severely damage Canada's economy. Canada is an export economy. Two-thirds of Canada's exports go to the United States. Since it had a substantial trading partner next door, Canada became complacent and did not actively pursue additional trading partners, making the U.S. market its economic lifeline. Tariffs would result in significant job losses in Canada, particularly in sectors that rely heavily on exports to the US, such as automobiles and timber. The ripple effects would extend beyond Canada's job market. With job losses, a contracting economy, and higher prices, Canadians will have no choice but to rethink their spending habits, more so than post-COVID inflation has.
As Canadians struggle in a high unemployment rate and high-price environment, creating financial strains that force a re-evaluation of spending priorities, "affordability" will take on a whole new meaning.
Financial Waste of Consumerism
"The more you have, the more you are occupied. The less you have, the more free you are." - Mother Teresa
During COVID, when non-essential retailers, services and restaurants were mandated to close, I quickly realized how much money I was spending frivolously, confirming what I have always known: In our culture of consumerism, much of what we buy is financially wasteful.
Sales and discounts entice us to buy things we don't need or genuinely desire, creating a glaring irony; we fill our homes with "stuff" and fail to recognize that less is more.
How many gadgets, clothes, or trinkets do you own but seldom use? Consumers accumulate staggering amounts of "stuff," the majority of which end up in landfills, contributing to financial and environmental waste. It'll be interesting to see if tariffs creating a stoic Canadian economy will result in Canadians rethinking their buying habits, prompting a long-overdue broader discussion about simplicity over excess.
Environmental Consequences
Everyone claims to be concerned about the environment and climate change, yet their consumerism says the opposite. It's hypocritical to claim you care about the environment while stirring your Starbucks coffee with a plastic stir stick, tossing it into the garbage, placing a plastic lid on your cup and then walking to your SUV. The sense of entitlement that we're owed convenience and the ability to buy things we don't need drives a production cycle that is indifferent to the planet's well-being. It's our quest to chase "the latest and greatest" and to project an image hoping it'll help us "fit in" that contributes to deforestation, pollution, and climate change. In other words, it's not government policies that are killing our planet; it's our embracing marketing propaganda that perpetuates the self-serving narrative that you can purchase happiness.
If it takes Canadians grappling with rising prices and shrinking income to consider their consumption's environmental impact seriously, tariffs do have one silver lining. We can't keep trashing our planet. As prices increase, will the environmental cost of producing [whatever] outweigh the allure of owning [whatever]? When was the last time you considered the carbon footprint of buying California-grown strawberries in mid-February or purchasing toothpaste off Amazon, which you could easily purchase at your local grocery store, knowing how it'll be packaged for delivery?
Since actions speak louder than words, our commitment to a cleaner world is questionable. If we are seriously committed to a cleaner world, we'd consume less—much less.
Much of our consumerism is fueled by a desire to project wealth and status—we spend our money trying to look rich. Our obsession with appearances—keeping up with the Jones—blurs the lines between need and want. Often, we purchase products not for their utility but for the image they convey.
As tariffs drive up the cost of upscale goods, maintaining a façade of being financially successful becomes more difficult. Ideally, Canadians will start asking themselves what makes them chase illusions advertisers create and who they're trying to impress. The pressure to look affluent has led many Canadians into crippling debt. Today, Canada has the highest household debt to disposable income ratio in the G7, at 185%, compared with an average of 125% for all G7 countries.
Will tariffs force Canadians to confront their purchasing habits? Do you need the latest car, fashion, or technology, or to eat out as much as you do? Will Canadians continue to be seduced by a marketing machine preying on emotional vulnerabilities, insecurities, desires, and social needs? Could a shift in societal values be on the horizon? Will Canadians change their frame of reference to what a successful life looks like? Many Canadians could reduce their spending by almost half and still live a better lifestyle than most worldwide.
According to the World Bank, the average person globally lives on less than $6.85 per day, with half of the world's population falling below this threshold. In 2021, 53 percent of the world's population—4.1 billion people—had no social protection. In comparison to most of the world, Canadians live an unimaginable lifestyle.
Within five days of taking office, Trump has kept all of his campaign promises, so it's safe to assume he'll keep his promise to impose tariffs on Canadian imports, along with Mexico and China. Canadians would be wise to prepare themselves for the consequences of tariffs. I'm not talking about adjusting spending habits or finding alternative products; I'm talking about rethinking values and priorities and how first-world consumerism negatively impacts our environment and financial health.
Ironically, tariffs could serve as a much-needed wake-up call for Canadians to critically examine their relationship with their consumerism, redefine what it means to live well, differentiate between actual needs and wants, and create a future in which we acknowledge less is truly more.
Nick Kossovan, a self-described connoisseur of human psychology, writes about what’s on his mind from Toronto. You can follow Nick on Twitter and Instagram @NKossovan.
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