'These are the people who gave us Martin Short … and maple syrup': Obama mocks Trump's trade war with Canada at Michigan rally

The crowd laughed and Canadian social media cheered in response to Obama’s very spirited commentary.

The midterm elections will help shape — or reshape — the foreign and domestic policy agenda for the next two years before the nation’s next presidential election. And for Michigan, whose auto industry runs on cross-border supply chains, the stakes are even higher.

What did Obama actually say about Canada?

Obama spoke at Cass Technical High School in Detroit, where he leaned heavily on sarcasm, calling Canada “that historical adversary of ours” and a “well-known evil empire.”

He was quite acerbic when speaking of Trump’s treatment of Canada, noting how the country is “constantly being abused and talked about” by the current administration, while also criticizing his 51st state rhetoric.

Obama then directed his commentary to the economic impacts of the tariffs that went into effect in late August. “[Trump] was warned, this will drive prices up, this does not lower prices,” he noted. “That’s exactly what happened.”

He also pointed to Michigan, and its deep economic integration with its northern neighbour.

“In a place like Michigan and the auto industry, you got integrated systems between Canada, the United States and … so each car requires a whole bunch of parts from a whole bunch of places.”

How did the trade war escalate this fall?

Behind the sensational sarcasm and partisan polemics, the numbers are serious. After trade negotiations fell to the wayside, the U.S. imposed a 50% tariff on $27.6 billion worth of Canadian goods on Aug. 22. U.S. Trade Representative Jamieson Greer said Canada refused to finalize terms agreed days earlier, while Ottawa argued that Washington asked too much and offered too little.

Canada responded in kind with matching counter-tariffs of 15%, 25% and 50% on an extensive list of U.S. imports, effective Sept. 8.

Trump has also threatened to raise tariffs on Canadian cars, trucks, auto parts and steel to 50% on Jan. 1, 2027.

Midterm pressure is already changing which goods get taxed. Maine Republican Sen. Susan Collins, who is up for re-election, said on Oct. 23 that the Trump administration will scrap 50% tariffs on some Canadian goods. The relief covers certain paper and plastic products, packaging equipment, farm machinery and seaweed.

However, the change swaps one set of tariffs for another. The Canadian Federation of Independent Business (CFIB), a non-profit representing small business owners, notes that the same Oct. 30 change adds other Canadian products to the 50% list, including appliances, tools and flooring. For Canadian workers in packaging and farm equipment, that’s some relief. For those making appliances or flooring, the pressure just went up.

The U.S. Embassy in Ottawa, meanwhile, has suggested Canada may be interfering in the midterms, citing in part comments about its counter-tariff strategy. Prime Minister Mark Carney has responded by saying the claims have no merit.

Are you paying more for U.S.-made goods?

You may be, depending on what you choose to purchase. According to the Department of Finance, which oversees tax and tariff policy, Canada’s 50% counter-tariffs cover items such as U.S.-made furniture, clothing and apparel, with a 25% rate applying to appliances and cheese.

Importers pay tariffs, but retailers can pass those costs along to consumers to make up for the levies. In practical terms, if the import value of a couch is $1,000, it will now face a $500 tariff at the border before any markup is applied. So, the best way to skirt the sticker shock is to seek out Canadian or foreign alternatives that do not originate in the U.S.