If the United States hits Canada with a border adjustment tax, Canada needs to fire right back with one of its own, according to former Deputy Prime Minister, John Manley.

Manley, who is currently the President and CEO of the Business Council of Canada, told BNN in an interview on Monday that it’s crucial to Canadian competition to reciprocate with a border tax, should the Trump administration successfully pass one.

“I can tell you what I would be saying at the cabinet table if the United States imposed a border adjustment tax,” he said. “I’d say ‘We have to reciprocate. What are we? A bunch of patsies? … We’ll have to have one too.’ And I think other countries would do the same.”

“We’re not going back to the 1950s here, we’re going back to the 1930s. Not good for global trade and investment. Not good for jobs. Not good for creating prosperity.”

Manley also believes that talk of Canada being exempt from a potential tax aimed primarily at Mexico is unlikely to fly with the World Trade Organization.

“If they impose it, of course, it will apply to everybody. I think the only way it’s WTO-compliant at all is if there are no exceptions in terms of countries. So, getting a carve-out for Canada wouldn’t be an option.”

He also says that the likelihood of getting such measures passed in Congress could be a tall order for the U.S. President.

“Everything I’ve heard – both in Washington the last few days and here in New York – is it’s still a chance that’s below 50 per cent. Not everybody agrees with that, but there are really a number of groups that are quite opposed to a border adjustment tax. You’ve almost got bi-partisan opposition to this idea,” Manley said.

Manley’s doubts come just days after the Trump administration and House Republicans withdrew their proposed healthcare bill from a Congressional vote due to lack of support. That result is creating doubts about Trump’s ability to push his agenda through, despite a Republican majority in the House and the Senate.

“I think they’ve realized they can’t rely just on Republican party loyalty. And the President, so far, hasn’t had the time or the inclination to try and build other kinds of alliances within the Congress,” Manley said.

“You may not have that many Democrats on side, but you’re probably going to need some in the House and there aren’t even that many that you can rely on in the Senate.”

To do that, Manley believes Trump needs to alter his current approach, targeting personal politics as opposed to the party line.

“You can’t tell people they’re fired… the voters have something to say about that,” Manley said.

“But also, one of the currencies of politics is personal loyalty. Yes, party loyalty can come to play, but you have to build those personal relationships. You have to win the trust and support of colleagues, especially when you’re asking them to do something which might to some degree be against their own political interests.”

As for competition, Manley said that Canadian businesses need some help to prepare for the eventuality that the taxation rates south of the border will drop.

“I think that we can reasonably assume that even if they end up cutting taxes and increasing their deficit, they are going to cut taxes in the United States,” Manley said. “So, Canadian businesses are going to face a relatively higher tax load compared to their U.S. competitors.”

“Pay more for carbon. Pay more for taxes. Competitiveness has to factor into this game somewhere or we’re going to find that it will have a very negative impact on our economy.”