Forbes Media chairman Steve Forbes warned Monday that escalating tariffs between the United States and Canada could threaten economic growth and investment, cautioning against allowing the dispute to spiral into an “economic war.”
Forbes, who has supported President Donald Trump, appeared on Fox Business’ “Varney & Co.” with host Ashley Webster, where he sounded the alarm over the administration’s use of tariffs, which he described as another form of taxation.
“Canada now planning retaliatory tariffs on the US. Steve, are we headed for economic war with Canada?” Webster asked.
Canada has vowed to match the United States’ 50% tariffs “dollar for dollar.”
“Let us hope not because both countries are very dependent on that trade,” Forbes responded.
Forbes pointed specifically to the trade in heavy crude oil from Canada, arguing that it plays a significant role in the overall trade relationship between the two countries.
He said the U.S. trade deficit with Canada comes from heavy crude oil exported from Canada for American refineries, which he said cannot use 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,” Forbes said.
The media executive predicted that the two sides would ultimately find a way to cool the dispute but warned that threats surrounding tariffs were already creating economic uncertainty.
“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,” Forbes said.
He then delivered a warning directly aimed at Republicans about the economic impact of tariffs.
“So remember, tariff is another word for tax and putting taxes on products means there’s less economic activity, period,” Forbes said. “Republicans should know that.”
Trump has faced bipartisan backlash over the tariffs on Canadian imports, including steel. The tariffs were imposed after trade negotiations between the United States and Canada fell apart.
Trump has accused Canada of “ripping off” the United States through its own tariffs.
Forbes was not the only Trump supporter raising concerns Monday.
Stephen Moore, a close Trump ally, also joined Webster and criticized the newly imposed tariffs, arguing that the United States should not be picking a trade fight with Canada while already dealing with the war in Iran.
“Do I think now is a good time to fight a trade war with Canada?” Moore asked. “Probably not.”
Moore said he had reviewed economic figures shortly before appearing on the program and was concerned about rising commodity prices in the United States.
“Commodity prices are rising right now in the U.S.,” Moore said. “That’s a bad sign.”
He added that the increases were “an indication that inflation continues to tick up.”
