The National Post reports in its Saturday edition that an Ontario government anti-tariff ad narrated posthumously by Ronald Reagan is gaining attention after Donald Trump cited it to justify halting cross-border trade talks. The Post's Rahim Mohamed writes that Mr. Reagan's protectionism benefited Ontario by fostering a thriving network of Japanese-owned auto plants and parts makers. McMaster University automotive expert Greig Mordue said, "It's hard to draw a direct line, but Reagan used a careful blend of carrots and sticks in his dealings with the Japanese." When Mr. Reagan took office in 1980, Detroit's Big Three automakers faced fierce competition from cheaper, fuel-efficient Japanese cars. To address this, Mr. Reagan made a significant foreign policy move by cutting a deal with Tokyo. In May, 1981, Mr. Reagan used the threat of a hard import quota to persuade Japan to voluntarily cut auto exports to the U.S. by about 33 per cent, which was like imposing a tariff exceeding 60 per cent. Canada's then trade minister Ed Lumley negotiated a cap on Japanese vehicles entering the Canadian market the same year. To skirt the de facto tariff, the Japanese automakers set up their own plants in North America.
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