The Prisoner’s Dilemma, Tariffs, and Earning Respect

In game theory’s famous Prisoner’s Dilemma, two players benefit most when they both cooperate. But if one “defects”—turning its back on the spirit of collaboration—the other must respond or risk further losses. More than just logic, this theory holds true in the real world.

Enter President Trump’s 25% tariffs on Canadians.

Canada and indeed Ontario rely on a strong U.S.-Canada trade relationship, one that makes both sides richer and more secure.

So when the Trump White House defies that mutual interest by imposing tariffs (after assurances to the contrary to boot), remaining passive would effectively reward the defecting player, encouraging them to continue their assault, unabated.

Hell no. When you get hit, you hit back.

Tit for Tat—the winning strategy in repeated Prisoner’s Dilemma tournaments—tells us to respond proportionally to discourage further escalations. It’s a short-term “retaliation” for a long-term commitment to partnership. Retaliation = Reflection = Cooperation.

The importance of the strategy cannot be overstated: President Trump’s actions are putting over 450,000 Ontario jobs at risk. Hardworking families and businesses suddenly face devastating uncertainty.

A forceful, dollar-for-dollar response by Canada and Ontario, supported by every legal avenue, isn’t just about showing we have balls—it’s about protecting our workers, communities, and supply chains from predatory tactics.

We’re at war, even if temporarily. Time to protect our interests.

PS - Support your Prime Minister, support your Premiers.

PPS - Would someone remind Premier Smith that she’s Premier of Alberta, not Governor of the Gulf of America?