Huh 30% of our lumber just got 50% more expensive. Good thing we don't have shortages of affordable housing that need new construction to solve. Brilliant stuff Donald. Truly some 4D chess moves.
There was significant talk about market manipulation - he knows what he's going to tariff and how that'll affect the stock market, so he can buy low and sell high without any risk, because he is effectively the dominant market force right now
I don't cutting down our forests either but the stated goal of the whole exercise is to improve the US's businesses and self reliance on local industry...
I know you're being facetious, but his entire immigration policy is to deport a large part of the construction labor pool, so he was never had a chance to make housing more affordable.
This was totally the right move, if for no other reason than it's the only thing that this US admin will respect in the long run.
Being in Canada though this does look v. short sighted of the US. All this is going to achieve is pushing Canada much closer to other countries, particularly China, which at least superficially these negotiations were meant to prevent.
The problem is they're also stifling trade with China. We still have quotas on Chinese cars so that they don't flood the market with affordable cars to preserve our (yours and ours) inferior car industry.
It's basically what Canada is doing to the US with dairy, except with Chinese cars.
What is going to happen is this lack of deal will accelerate the (inevitable) decline of the Canadian car industry, which will reduce objections to the Chinese imports leading to those quotas changing in an ever accelerating feedback loop.
From the US strategic perspective this is moving out of the frying pan and into the fire.
> This was totally the right move, if for no other reason than it's the only thing that this US admin will respect in the long run.
Unfortunately, Canada (where I live) will feel way more pain from this than the US. I am not sure Trump will have respect for this at all, but the alternative was to put in a permanent trade deal that significant disadvantaged Canada.
I know that this is insanely complex with everybody protecting their own economies, but I think this is where middle powers working together more strongly could help. Imagine that Canada, the EU, and Britain worked together as an economic NATO, where a tariff attack on one is a tariff attack on all. It would hurt the US much more to bully one of these economies.
There is also the factor that Canada has been propping up unsustainable dead end industries on a massive scale for years, and that this will make any pain from such a situation, deal or no deal, that much worse.
Most obviously Southern Ontario is living in a dreamland where inexplicably ICE autos remain a viable industry ad infinitum.
Some forced reality, by any means, will in the long run prove to be welcome.
> Unfortunately, Canada (where I live) will feel way more pain from this than the US. I am not sure Trump will have respect for this at all, but the alternative was to put in a permanent trade deal that significant disadvantaged Canada.
It's unfortunate and in some ways unfair. I hope the Canadian economy will move towards more open trade partners and will proposer.
The thing that I really struggle to understand is what the grand vision behind this is. A logical consequence of the tariffs is that Canada, Europe and other American allies focus more on those who are willing to trade with them, including China.
If I put a 2/3y contract in place with an American supplier, there's a fair chance that I might have to deal with 10-50% tariffs at some point during the contract. This does make (long)-term business deals with the US risky.
For example, the first tariff wave was a huge transfer of wealth from citizens to corporations in the OBBBA. First, the income from tariffs was projected to offset the tax cuts for the rich and corporations. Then, when the Supreme Court found them unlawful, the money had to be returned. But first the corporations let consumers pay the tariffs by increasing product prices, but now it is the same companies who get the tariff refunds. And since they are obviously not going to give the money back to the customer, it lined their pockets.
They stand for Project 2025 and the Maralago Accord, and the ideology behind them. So far they followed both projects quite closely. Trump is a tool they have to manage to reach their goals
Also, of course, extracting as much money from the state as possible
The guy still has like ~35% approval ratings according to every poll there is, and that’s after weekly displays of outright corruption from him and his family, and “winning” the same war dozens of times already with no end in sight. The number hardly even budged YTD.
You’re telling me that this country is capable of learning?
It is lowest in history in this point of presidency apart from Nixon, who resigned at this point. That 30-35% is the floor, which won’t budge, likely because the hard core Maga Republicans have nowhere to go in US two-party system - which would be not just a surrender of long-held political beliefs, but a complete social death as well. This does not mean that the core Maga is very happy either, but they hope the movement continues after Trump so they can finally get the full Christian Nationalist Fascism they so desire.
I doubt that is going to happen. Trump is going keep the strings behind the party, fucking everybody hard, until finally he dies or otherwise implodes. What is left of American democracy when that happens is a whole another thing.
The 65 percent approval rating from GOP voters right now says no, they are happy with immigration, culture war nonsense and trade chaos. Red states and rural areas would need to be targeted specifically and even then all interviews indicate those voters won’t consider choosing the other side, most of that GOP opposition will at best just not vote.
Trump believes everything on this planet is zero sum, and the only way you can benefit is if the other party hurts. His entire history on this planet betrays this, where he is an unreliable scumbag to everyone he has ever dealt with, to the point where the guy couldn't find vendors or a bank outside of Russia to deal with him. And then Americans said "this is the guy we should put in charge".
It is a particularly interesting position when the US is trying to counter China. The only hope the US had was an alliances with other Western-style nations, but instead it has been nothing but attacks and diminishing.
> It is a particularly interesting position when the US is trying to counter China.
The US put countering China way behind on its priority list, below "owning the libs" and settling old scores. I am convinced that if the Iran decapitation had worked like Venezuela, which seems to have been what they expected, then Cuba would have been next.
I am surprised the USA has not attacked Cuba yet. I am guessing the rundown on missile stocks has eliminated the possibility of a 100 percent air/navy campaign like they failed at in Iran.
Exactly. Cuba is a pain in the US politics since generations now. If Trump would solve it, that would boost him. But if it fails, with declared victory but significant partisan warfare afterwards - not so much.
Attacking one of Russia's few allies and weapon suppliers is counterproductive to such a goal, even if higher oil prices also help the Russian state finances.
This ill-conceived, Kegsbreath-run operation depleted weapons stocks, gave enormous levels of intel on its systems (which both Russia and China are loving), burned through hundreds of billions in spend, and made Ameirca look like an impotent pathetic joke.
Yes, the Iran operation 100% served Russia and China. It could not have gone better for them.
And of course it helped Russia make hundreds of billions more on oil. Win win win.
You're not going to get free trade if it's unilateral, because you've then created an incentive for the other side to protect their own industries knowing you're not going to retaliate, while reaping the benefits of access to your market.
The EU didn't really fold, they blew him off. It was just a bunch of "yeah sure Donny, here's a bunch of meaningless promises we have no ability or mechanism to actually enforce". For example they promised to buy a bunch of gas, but the EU has no mechanism to make companies or even member states buy gas.
The only real concession the EU made was just allowing Trump to tariff them at a certain rate, and not counter-tariffing back (with various escape clauses).
While the EU response certainly wasn't a feel-good display of chest thumping, I think it was somewhat effective. He was able to strut around and feel big, and they were able to move on.
The only reason the EU would really want to apply counter tariffs against the USA would be to either make a point, or because they are actually afraid that exports from the USA could outcompete EU products unless tariffed, but this just isn't really the case right now.
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The only form of retailiation I think the EU should actually be pursuing is the equivalent of tariffs on US software. This is the area that the USA is a highly competitive 'exporter', and putting up barriers agaisnt these software services would be a good way to hurt the USA, and protect / stimulate domestic alternatives.
To add into what you said. EU’s Carbon Border Adjustment Mechanism (CBAM) already affects the United States, though its impact varies depending on the sector. CBAM is big permanent change, and that will be rolled in smoothly below all this.
EU has carbon tax internally and they are rolling out CBAM to prevent "carbon exports" (manufacturing stuff outside EU and then importing those product without tax). CBAM is currently used directly some high-emission sectors: iron and steel, aluminum, fertilizers, cement, electricity, and hydrogen.
EU importers require granular data on the embedded emissions (both direct and indirect). US companies in these supply chains have had to overhaul how they track and verify carbon intensity down to the sub-supplier level to help their EU buyers comply with strict European reporting standards.
EU will gradually expand CBAM after allowing supply chains to adjust.
If the Europeans really want to, they could produce a lot more by converting over to 'war mode'. Certainly they need to do more with current geopolitics, but there is no need to crank it to 11.
>if the Europeans really want to, they could produce a lot more by converting over to 'war mode'
As an Italian there's definitely been a perceptible shift due to the increase in defense spending. Leonardo now makes TV ads (something I had never seen before), they advertise on newspapers (...)
Of course, because Russia spends 7+% of its GDP on its military, and Italy 1.6%. It does say something about the relative capacity though. Russia probably cannot sustain this level of spending forever, and European countries could (continue) raising it if needed.
You are not very informed on the EU's artillery shell production capabilities.
If anything, the major gap is the EU's lack of cheap drone manufacturing, but even that is starting to make progress with help and integration from Ukraine.
> You are not very informed on the EU's artillery shell production capabilities.
> In 2025, Russia produced an estimated 7 million artillery shells,
vs.
> Germany has rapidly scaled up artillery ammunition production, led by defense giant Rheinmetall. Output targets have surged from roughly 70,000 shells per year prior to 2022 to a projected 1.1 million to 1.5 million rounds annually by 2027–2030,
so now vs. "projected" and Russia still heavily outnumbers the former Nazis.
Which is to say give me a fricking break, I live in the closest EU and NATO capital city to Southern Ukraine, I know my shit.
I really would love to see this, but the sad truth is that there are no real alternatives for a very big amount of software products.
In the end, the eu residents will simply have to pay more for a lot of software products, and that's it :(
That's the initial impact, it's exactly the incentive that over time will create native competitors.
Yeah, there will be immediate pain but if EU competitors can spring up because the American software giants are disadvantaged it'll slowly erode the reliance on US's software.
Regarding the retaliation, I’m unsure who would be hurt more. There are very few ready alternatives to the MS office suite, and none with the close integrations like AD. Most corps run on Microsoft. If those contracts get slapped with tariffs they would become unmanageable to buy.
Then, because it isn’t on-premise anymore where you could just continue running without paying for the service contract you lose direct access to the product. So that might even mean whole companies going under.
The US sells software to the EU. To me is constantly amazing that US citizens and US gov thinks it can just pull the plug without consequence to itself.
You pull the plug the money stops rolling in. I don't know if you've ever tried to sell something vs buying something but buying is a ALOT easier than selling.
You can easily choose where to buy but choosing to sell is a lot trickier. Pull the plug on AI and the EU will switch to Chinese models. Trade negotiations and relations are very fragile and difficult to curate and maintain. Very easy to rip up.
You seem to ignore the fact that changes take time.
There are entire governments in the EU with workflows built around Microsoft products that have no real 1:1 alternatives. If a governmental procedure stipulates that a ministry uses Windows w/ Office365, it uses Windows w/ Office365, no room for an argument. If anybody pulls a plug here, the consequences will be unimaginable.
It's nice that a single German state has switched to LibreOffice, but the rest of Germany, or the remaining 26 countries might take years, if not decades, to certify and permit someone else's solution.
The EU has no real reliance on US military might. Russia has been shown to be a paper tiger and the EU can use Ukraine as a proxy to cripple Russia while keeping their hands relatively clean.
I wish you were right, but look at Ukraine's desperate requests for Patriot missiles and Switzerland letting the US screw them repeatedly to get F-35 and Patriot.
Patriots are a big issue now, but they are also for the US after the Iran war. You now also see European countries starting to European alternatives as a result (e.g. SAMP/T and IRIS-T). While these are also still low(er) volume, the EU controls its own destiny by switching to alternatives to US systems.
Russia went into the war with armed forces that turned out as you say (possibly except the nukes, hard to tell unless they attempt to use one); the war forced them to develop substantial drone and anti-drone capabilities that the EU nations are not yet in a position to counter.
Yes and no. A lot of the drones are developed by Ukraine in cooperation with companies in EU countries and production facilities are being opened quite rapidly in European countries (e.g. VDL in NL, Innokas in Finland). The EU is pumping a lot of money into Ukraine and we learn a lot from Ukraine.
The EU would strongly prefer to have US military support, but does not fundamentally need it. In the miltiary domain, but also lots of other domains, the EU is using these fake promises they made to Trump as a mechanism to buy time while they quietly work on removing US dependencies, and reducing US leverage.
I suspect that if my country gave Putin what we give to the US - military bases where they can do whatever they please no questions asked, real-time intelligence access, unofficial favored supplier status for anything that might be control-relevant, quiet veto power over any national policy decision deemed "strategic" - then we wouldn't have to worry about invasion - from Russia anyway. Why invade what you already own?
I think that price is a little too steep, though. Not to mention that the US would then be at least as willing to topple governments/invade as Russia currently is.
If Europe does't buy gas from Russia then that leaves Qatar and the US. Qatar does sell a lot to Europe (hence you'll notice how "friendly" Europe is towards Qatar) but is vulnerable to instability in the straight of Ormuz.
The US are making a fortune on gas at the expense of Europe an it's not that the promise to buy gas is meaningless because unenforceable within Europe, it's that it was already happening in practice. And that makes Europe even more dependent on the US (while the complaint was that we could't buy gas from Russia and depend on them).
Yes, the EU does rely on buying US gas as an important part of its energy mix. But that is true independent of whatever deal the EU struck with Trump. The EU simply does not have control of who its gas importers buy from (other than sanctions)
But this is also why the EU is aggressively pursuing and building up alternatives, including investments in Canada's ability to export LNG, but also buildouts of solar, wind, and batteries.
Solar and batteries come with their own dependencies on China, but at least those are a different sort of dependency than fossil fuels. If China stops exporting solar / batteries, the ones we have will still keep functioning for decades while alternatives are built up.
The EU is heavily investing in renewables, but mainly to phase out coal rather than gas, and it's absolutely not electrifying its economy.
You can see this in the EU Emissions Trading System. It covers about 40% of all emissions, but leaves out buildings (dominated by gas) and transportation (dominated by oil). Since electricity is covered, it actually encourages oil and gas over electricity.
Furthermore, member states like Germany are resistant to taxing gas higher than electricity:
Despite the wars in Ukraine and Iran, gas is still encouraged over electricity in many European countries.
China and some other Asian countries have adopted the opposite approach. They aim to replace oil and gas by all possible means, including coal (although it's not the preferred choice).
Capitalist progressives unfortunately do view anything toward the left as (false) populism. Steven Pinker and the like. Even the main Democrat party does too, look at what they framed Bernie as. They manufacture such truths. As elites.
N.b. if you look up 'populism' on Wikipedia a huge portion of the page explains the contested term is sociologically vague and did not have the negative connotation it does in mainstream discourse. Most people are not aware of this.
Pointless, incredibly bad faith bothsideism. Zohran was the only one in the NYC mayoral race to believe in actual democracy. Cuomo's whole campaign was "elect me because the other guy is a muslim, and I won't do anything during my mandate, like the previous mayor". Zohran did actual campaigning on issues the electorate cared about, and so far has delivered on his promises.
Tarriffs will hurt your existing industries, they will lose sales/revenue.
Since you are getting hurt you play tit-for-tat to get the other to knock it off.
So you add export taxes to items they care about (oil/fertilizer/...) and compensate the losses incurred by existing industries.
This hurts both countries but will get a result - either free trade or no trade.
In the meanwhile, Trump's entourage has derivative bets on this and take massive proffits shorting everyone. For them, this is all massively profitable.
I guess it has a little to do with your goals. Optimal trade economically or avoiding giving something that looks like a win to this type of politicians with the goal of avoiding re-electing trump. I don’t know what science say here.
Yanis Varoufakis - aside from being radically left and becoming the finance minister in Greece after their financial crisis hit - is a professor in game theory and economics.
He did a pretty good explanation of the difference between theory and practice in his Rest is Politics Leading podcast interview recently :).
China put tariffs specifically on the sectors that voted for Trump and depended on sales to China.
When the other party is not playing the same game, or not playing in fairness, then the best game theoretical move is to cease cooperation and retaliate.
Nice to see them putting up a fight. Though I assume this will cause pain for everyone.
One note: aren't these sentences strange - like a series of half-thoughts? Especially the 2nd paragraph.
> Our government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market.
>
> We have worked in that context. To strike a fair deal that would provide the best access to the U.S. market and greater certainty to Canadian businesses and workers.
Actually its the opposite. The pain of "giving in" is limited to specific Canadian industries and powerful stakeholders with a LOT of political influence. In the broadest terms, Canada's economy grows rapidly if they give in.
Explain how “Canada’s economy grows rapidly” if we accept a bad deal from a stronger economy. The goal for Canada is a return to the free trade agreement covering ~98% of goods that existed before this chaos, which allowed for close integration and long term planning for businesses on both sides of the border. Rolling over and dying gets us further away from that goal.
I’m interested to see if this spurs other countries to push back on this administration. Once you get a couple of countries to collectively stand firm is when things take a turn. Bullies can only push for so long
Pushing back against a US that is at this point economically and militarily dominant does nothing. It might push for cooperations outside the US-sphere.
Are they still dominant? They can't even win their war against Iran. And everyone is slowly moving away from the dollar. The US as world hegemon is counting its days.
This is the way. If the US imposes tariffs, impose tariffs on US goods.
The US administration twists facts to suit their agenda. For example, they often complain about the trade deficit the US has with other countries. However, that deficit often (depends on the country) only exists if you exclude digital goods (Microsoft, Google, Apple, etc.).
If the rest of the world were to restrict the import of those digital goods, in the interest of fairness, the tech lobbyists would swarm D.C. in panic.
Agreeing with your larger point but on the other hand, Trump-voting districts with older industries probably have trade deficits, both with other American districts and especially internationally.
For some perspective about what’s being negotiated:
“What’s at stake in the Canada-U.S. trade deal? How looming tariffs could cost Canada 90,000 jobs”. Trevor Tombe, professor of economics at the University of Calgary
I wonder what would happen if Canada taxed electricity exports to the US, and used the money to directly subsidize other exported goods the US applies tariffs to?
it is easy to tax exports, but this makes the export less profitable (for the entity making that export). Unless you mean the producer raises prices to cover the new tax - in which case, the export is now more expensive, and less of it gets exported.
It doesn't really help with the tariff situation much in any case - a political problem requires a political solution (such as reciprocal tariffs). Both sides hurt, and there's no good outcome.
Oil and potash are made in provinces that have had their voter bases successfully propagandized by US Republican interests. They refused to get on-side at a political level.
It might be good to tax exports and use the proceeds to subsidize Canadian consumers. This should snuff out the dependence on export to US pretty fast with little harm to Canadian companies.
The US would then just stop importing that electricity and funnel the power in from domestic sources. The electricity comes in from Canada because it’s cheap, not because the US can’t make electricity. Canada would shoot itself in the foot with this move.
Its nice to see some backbone, but the challenge for Canada is that it’s broadly in a weak negotiating position here. Generally speaking Canadian companies need access to the US market a lot more than US companies need access to the Canadian market.
>Canada is that it’s broadly in a weak negotiating position here.
That's an understatement. Hypothetically if Canada were isolated from the world, it would regress in the quality of life in 10 years. The most capable Canadians have moved out, mostly to the US. The average Canadian has unwarranted sense of nationalistic pride about them (compared to their neighbors).
Isolate US from the world, and assuming that the govt does not meddle too much with local businesses, in 10 years they will bounce back to being more self sufficient than it is now.
This is a useless hypothetical. Almost every country would regress in quality of life if it were suddenly cut off from the global economy. The options aren’t a bad deal from the US or complete isolation. Canada is making deals with reliable partners abroad.
Can the US even afford a trade war, they are beginning to find borrowing more money increasingly difficult… currently the debt is around $130k for every man, woman and child in the US.
More difficult is a relative term. More difficult but still easier than other countries so the US remains in a stronger position here. The US can sustain the mess a lot longer than most countries can survive it.
Carney had to take a stand, the last few moves he pulled angered a lot of people. For example he started talking about asking the provinces to put US booze back on the shelves which for us who boycotted prior to the govt saying it was a good idea, is giving up our leverage before any demands were acquiesced. He's playing the same song with the digital media tax and even with the case that made Meta forego all Canadian news outlets.
Basically he was elected to stand up to Trump and as an economist, come up with a strategy. He initially appeared to do that, but given that it largely hasn't swayed Trump, he is now backing off most of it. You could argue it's a strategy worth trying since to buck-for-buck hasn't worked, but you could also make the point that the electorate, without being told what the plan is (duh), feels he is weakening our position.
A lot of the strategy has been to wait it out and expect uproar from the US people which... largely hasn't come.. yet?
These tariffs will be struck down as unconstitutional just like the ones Trump attempted under the IEEPA were. Any company who paid in the meanwhile will be compensated while consumers will get the short end, so it will be a nice payday for northern importers.
It's Congress who has the power to tax. If Trump wants tariffs he needs to propose a bill that creates them or gives him clear powers. The legal scholars in his cabinet know this, so why has he not proposed a bill?
Regardless of our different readings of the SCOTUS’s recent opinion, statutes are a poor process for imposing tariffs. The legislative process is intentionally slow and difficult. It’s suited to permanent laws, not diplomacy and negotiations.
"However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal."
It seems like if the other side agrees to a deal too easily then Trump doesn't think the deal is good enough. He only likes deals where the other side is getting screwed and has to be coerced into signing.
> It seems like if the other side agrees to a deal too easily then Trump doesn't think the deal is good enough.
That's a great observation. So basically everybody should be saying no to him all the time to limit the damage because as long as there's one yes the stupidity will only grow.
I'm so glad there wasn't a single yes, when Greenland popped up.
Sounds like the right move. I can only hope that the rest of us lap dogs see the (common) sense.
The USA is increasingly the source of economic and military destabliisation in the world and it's getting real hard to justify being the best little doggy for them.
I'm not suggesting any action more drastic than calling a shit deal shit, and frankly it's pathetic and embarrassing that this is such a rare occurence.
And yeah, maybe some miracle corrective action will begin with a new president but the thing is, that will necessarily include restoring our "special relationship". You're better off refusing a bad deal outright, rather than trying to reneg later.
It's ironic that the US might currently do better with a (constitutional monarchy) king, to serve as an ethical example of living and governance, and change the role of the president to more of a serving bureaucrat
In the UK we've been lucky with our royalty recently, but with a different roll of the genetic dice we'd have Randy Andy as king instead of Charles.
Anyway, you have kings, you just elect them and call the presidents, but they have basically the same political role and powers as George III did in the 1790s cut-and-pasted across. The USA needs to get itself a decent parliamentary system.
Have you read John Steinbeck's "The Short Reign of Pippin IV?" [0] All political sides in France frustrated decide to create a constitutional monarchy. The Communists supported the idea because it would give everyone something to revolt against.
It would be the most effective way to hurt Americans.
But it isn’t politically possible for Canada to do this. The two segments that would be most effective, oil & gas and potash happen to come from provinces that already have significant issues with the federal government. One is even flirting with separation, which would be inflamed by export taxes.
Canada is also very venerable to similar actions by the Americans. Refined oil products, fertilizers and oil & gas pipeline transit all come from the Americans.
It is fun to imagine Canada sticking it to the Americans with export taxes, but it will never happen.
Scarcity is not really the problem—it is price competitiveness. Many, possibly most, maple syrup producers in New England do not sell to national grocery store chains. You go to the sugar house and buy a jug which is typically much more expensive than what you’d find in a grocery store. But you also have more choices, since you can buy from a person who sells different grades. I rarely see more than one grade for sale in a US grocery store. I don’t mind paying a little extra for something I use in such small quantities to support a neighbor.
I have not been following the Canada thing but generally have been learning more about trade and Trump's approach seems less chaotic and random than is talked about.
US's largest trading partner is Mexico. The biggest thing we import from them is automobiles & auto-parts and the second largest is computers and electronics.
We all understand the benefits of trade is meant to bring in - such as goods manufactured by countries whose prowess making those goods better to the benefit of all.
So it's interesting to look at this example. Automobiles - does Mexico have a prowess in that segment? A tell tale sign of "no" is that Mexico has no domestic auto brand. In other words 100% of auto exports from Mexico is actually US automaker production that shifted to Mexico is persuit of cheaper labor, weaker unions, and less environmental and other regulations that gets in the way of manufacturing.
I am focusing on this example because it's the largest segment of our trade with our largest partner - literally the biggest thing the US imports is our own shifted auto production.
The second largest segment is also interesting. Mexico isn't known for its computer and electronics brands either. What's going on? Turns out that Asian manufacturers (eg Lenovo) do the very final assembly in Mexico but all the components come from Asia. It's not actually "efficient" to do this except that when assembly happens in Mexico those components magically become a "north American good" by NAFTA terms and can go all over US and Canada with no duties or tarrifs or restrictions.
So the second largest segment with our largest trading partner is Asian manufacturers exploiting a NAFTA loophole.
As an American who inherently is pro trade (I am an MBA...) this is revealing about the obvious disadvantages of how trade has been configured. The auto example is literally NAFTA being used to bypass American labor laws and environmental regulations while maintaining access to our market by American companies themselves. The electronics example is Asian companies bypassing the long standing trade conditions by whitewashing Asian products as north American goods.
It is obvious that trade pre-Trump was not set up in a smart way from American perspective. The auto is a great example: the government simultaneously made it very hard and expensive to manufacture at home, and very easy to shift to Mexico.
I don't know the details with Canada as much but I no longer assume things were working great and US is meddling lens by default.
Just at the right time when China is looking to expand its exports. People said that Trump was Putin's stooge, but he might have been Xi's.
I'm concerned that governments worldwide are finding tarrifs to be a popular (and exciting!) way to exorbitantly increase the size of governments and goverment coffers which are then used for populist aims. We need to re-educate people that tarrifs are bad.
Note that these new tariffs are on goods covered by CUSMA, making that treaty inoperative. Pity it’s one Trump signed…
One must stand up to bullies otherwise they’ll keep at it. Until the US population feels the pain the rest of the world has been dealing with, nothing will change.
Oh, we’re feeling the pain. Anyone trying to actually build things in the USA relies on an increasingly unpredictable and expensive global supply chain.
What he’s been doing is only good for his grift game, not the USA.
If you want to bring manufacturing home, you frame a 5-10 year progressive tariff plan with tax incentives, financing, and grants to help build the infrastructure to progressively fill the demand as the tariffs roll in. Commerce thrives in stable environments with predictable changes, not in chaos and broken promises.
False. I'm in the trenches on the cross-border trade and issue in general every weekday. Investment, industrial production and migration of CAD businesses to the US is rapidly growing. Nothing Canada can do will reverse this, though several storms on the horizon unrelated to Canada could slow it.
Canada CAN survive without its historical trade volume with the US. It CANNOT survive with its current economy, debt load and environmental policies intact. Whichever way this goes, the US comes out ahead.
Why is the exposure is asymmetric?
~70% of Canadian exports go to the US - the reverse dependency isn't close to symmetric. Unemployment, business investment, and the CAD are all deteriorating far more deeply and rapidly than any impact on the USA. Canadians are carrying the highest household debt burden in the country's history now; and its natural resources can't plug the gap unless Canada is willing to kill net zero and other environmental rules.
These new tariffs are actually a retention play. Canadian businesses have been relocating to the US since the trade war started, and the countervailing tariffs are aimed at making that move less attractive. But the move is undermined by its target. Canada's household debt and wealth destruction are shrinking the value of the Canadian market itself, so the incentive to stay keeps eroding regardless of what the tariffs do.
The situation is so lopsided one has to assume this is a coordinated bid by certain forces in Canada and the US to shatter the Liberal party and its coalition with New Dems and Greens. Ask yourself how bad it has to get for Canadians before they lower their elbows and vote differently?
Is this some sort of weird AI slop? Like, what even is this nonsense?
"~70% of Canadian exports go to the US"
If you remove oil[1], Canada has a trade deficit with the US. And strangely the US has never said an iota about tariffing or restricting oil, and on the contrary keeps trying to increase it. Like Trump's big celebration was about hoping to revive a pipeline.
The vast majority of Canada's economy is internal, and rapidly non-US. We replace what we buy from the US. Somehow lots of countries on this planet don't rely upon being a subjugated feeder to the US.
>Unemployment, business investment, and the CAD are all deteriorating far more deeply and rapidly than any impact on the USA
Canada has fielded better employment numbers than the US. Business investments are at an all time high (lol, slop purveyor now claims that actually no, that's bad too!). The CAD has been gaining over the past few weeks.
Stop writing hilariously stupid slop on here.
[1] The US actually makes hundreds of billions of dollars processing and exporting Canadian oil, and it was yet another foolish decision of Canada not to process in country. But don't worry, exports to other destinations are rapidly increasing.
Why would you remove oil? And, Canada is emphatically NOT a internal economy. First, it imports most of its cars, industrial machinery and hardware. Second, its experiencing an FDI flood due to M&A activity that has key business being acquired and then relocated or repositioned to supply the US market.
Amazing that in 2026 Canada, Iran, and US Circuit Courts have the same stance: the US federal government cannot be trusted to tell the truth about anything. Fish really rots from the head.
People here in Canada have not been sitting still. It is a truely fantastic oportunity, it's almost like 10% of the US market was suddenly transported to another country for free, and all we have to do is fill it.
Canada and EU tightening their relation, pretty sure there are a lot agreements in the making. Will be great for both and appreciated by the people living in EU (and surely Canada as well).
A lot of it has been half-hearted. Basically "wait out this loser and everything will go back to the way it was". A lot of Americans are leaning on this as well.
Like over the last year we (Canada) should have utterly obliterated the US from any element of the Canadian supply chain. Instead everyone just keeps expecting things to return to normal so no one makes the necessary investments to stop it at the border.
Americans voted for Trump, a child-rapist stunningly stupid criminal, twice. It should never return to the way it was.
In 2016, an anonymous woman filed a federal lawsuit alleging that Donald Trump raped her in 1994 when she was 13 years old. The lawsuit was voluntarily withdrawn that same year, before the allegations were adjudicated. No court found that he committed the alleged assault.
Trump tries to betray Canadians here. When you make negotiations and then at the last second try to worsen the terms, you are not acting in good faith. This is a consistent theme with Trump: he wants to take advantage of you. This is a de-facto mafia system. The "art of the deal" is the mafia way. You can see this with Iran too - Trump negotiates, then attacks. Then fake-negotiates, attacks again (and loses anyway). The guy is a problem for the whole world.
I think Trump is severely misreading his position in the world. It's not April 2025 anymore. There will be consequences for everyone, but I am not sure his own party will support him through this in an election year. Especially now as the last time he publicly stated he backed down because if rising bond yields, which is actually happening already before any trade war. Is he really going to start another one, already in deep trouble because of the mess he made in Iran.
I think he will cave pretty quickly and Canada knows it.
Importantly Canada has committed to matching every American tariff dollar for dollar, which the US already considers unfathomable. Greer repeatedly cites that only Canada and China retaliated, which is such a weird criticism. Is he intending to compliment us?
So expect Trump to start spiralling. Also expect lots of astroturfing about how desperate Canada is and that it has no choice (one of those hilarious slop purveyors appeared below).
Canada should begin the process of withdrawing from USMCA, and the truth is that NAFTA cum USMCA has worsened Canada's lot over the past four decades compared to peers. Trade agreements with the US are worthless, and even negotiating with that Epstein pedo cabal of grifters is useless. It sounds like the Canadian team were foolishly going to give in to many things (any concession of any form always comes back to hurt you), but at the last minute Howard "Epstein Island" Nutlick swooped in and tried to extract even more, undoing it all. Which...thank you Nutlick, you disgusting greaseball. You did us a great favour.
Please have a look at the actual flow of trade between CAD and USA, and its components. The impact is nothing like what you suggest for the US. Canada can bend the knee to Trump, or it must gut its policies on natural resources and become an extractive economy similar to Russia pre-Ukraine war. There's no other option for Canadians and time is not on their side.
Sure, it would be pretty easy to smuggle small, high-value items, but most of the trade volume is in large items like lumber, steel/aluminum, new vehicles, and potash, and it's pretty hard to sneak a dozen 18-wheelers across the border a day. Electricity and oil are also pretty common exports, but those are even harder to smuggle since they go across in fixed wires/pipelines.
I think it's motivated entirely by schemes to stuff his pockets with money.
Love the see-how-ignorant-I-am type of comments.
Even positive reporting of the man makes him out to have a massively fragile ego.
Being in Canada though this does look v. short sighted of the US. All this is going to achieve is pushing Canada much closer to other countries, particularly China, which at least superficially these negotiations were meant to prevent.
Every baffling, self destructive move Trump makes, basically always aligns to a long stated goal of Russia.
It's basically what Canada is doing to the US with dairy, except with Chinese cars.
From the US strategic perspective this is moving out of the frying pan and into the fire.
Unfortunately, Canada (where I live) will feel way more pain from this than the US. I am not sure Trump will have respect for this at all, but the alternative was to put in a permanent trade deal that significant disadvantaged Canada.
Carney is very popular for a reason.
Most obviously Southern Ontario is living in a dreamland where inexplicably ICE autos remain a viable industry ad infinitum.
Some forced reality, by any means, will in the long run prove to be welcome.
Similarly, people who don't have self-respect don't respect others.
It's unfortunate and in some ways unfair. I hope the Canadian economy will move towards more open trade partners and will proposer.
The thing that I really struggle to understand is what the grand vision behind this is. A logical consequence of the tariffs is that Canada, Europe and other American allies focus more on those who are willing to trade with them, including China.
If I put a 2/3y contract in place with an American supplier, there's a fair chance that I might have to deal with 10-50% tariffs at some point during the contract. This does make (long)-term business deals with the US risky.
They don't respect anything. They stand for nothing. Their only concern is to pay lip service to Trump's crazy ideas.
s/Trump.*ideas/Line their own pockets/
For example, the first tariff wave was a huge transfer of wealth from citizens to corporations in the OBBBA. First, the income from tariffs was projected to offset the tax cuts for the rich and corporations. Then, when the Supreme Court found them unlawful, the money had to be returned. But first the corporations let consumers pay the tariffs by increasing product prices, but now it is the same companies who get the tariff refunds. And since they are obviously not going to give the money back to the customer, it lined their pockets.
Also, of course, extracting as much money from the state as possible
You’re telling me that this country is capable of learning?
I doubt that is going to happen. Trump is going keep the strings behind the party, fucking everybody hard, until finally he dies or otherwise implodes. What is left of American democracy when that happens is a whole another thing.
https://news.gallup.com/poll/700499/new-high-identify-politi...
Its the people that are the problem. These policies and politics will outcast Trump because middle Anerica and The South are filled with morons.
Leadership matters.
A different leader could take the country in a different direction - with the same voting base.
Eg an actual policy of isolationism instead of instigating multiple foreign conflicts.
That's not even close to an accurate number now. There are many sources e.g. (1)
It's a shame that people mostly learn the hard way, and forget easily. But that's not the support now.
1)
https://www.reuters.com/world/us/trump-approval-falls-33-low...
https://www.youtube.com/watch?v=t3fRIleMK-8
that wasn't even accurate on the day he got elected, considering a third of the country did not vote at all.
It is a particularly interesting position when the US is trying to counter China. The only hope the US had was an alliances with other Western-style nations, but instead it has been nothing but attacks and diminishing.
The US put countering China way behind on its priority list, below "owning the libs" and settling old scores. I am convinced that if the Iran decapitation had worked like Venezuela, which seems to have been what they expected, then Cuba would have been next.
Cuba is completely insignificant beyond some ideological value.
To get an easy win compared to Iran just before the midterms? Of course, it could end up in a mess, but it's a mess already anyway.
The point is to prop up Putin.
Attacking one of Russia's few allies and weapon suppliers is counterproductive to such a goal, even if higher oil prices also help the Russian state finances.
Yes, the Iran operation 100% served Russia and China. It could not have gone better for them.
And of course it helped Russia make hundreds of billions more on oil. Win win win.
Maybe Trump bets on his great relations with Putin and Kim instead.
The EU should abolish their tariffs and let the clowns in the US do whatever they feel like.
The only real concession the EU made was just allowing Trump to tariff them at a certain rate, and not counter-tariffing back (with various escape clauses).
While the EU response certainly wasn't a feel-good display of chest thumping, I think it was somewhat effective. He was able to strut around and feel big, and they were able to move on.
The only reason the EU would really want to apply counter tariffs against the USA would be to either make a point, or because they are actually afraid that exports from the USA could outcompete EU products unless tariffed, but this just isn't really the case right now.
___________________
The only form of retailiation I think the EU should actually be pursuing is the equivalent of tariffs on US software. This is the area that the USA is a highly competitive 'exporter', and putting up barriers agaisnt these software services would be a good way to hurt the USA, and protect / stimulate domestic alternatives.
EU has carbon tax internally and they are rolling out CBAM to prevent "carbon exports" (manufacturing stuff outside EU and then importing those product without tax). CBAM is currently used directly some high-emission sectors: iron and steel, aluminum, fertilizers, cement, electricity, and hydrogen.
EU importers require granular data on the embedded emissions (both direct and indirect). US companies in these supply chains have had to overhaul how they track and verify carbon intensity down to the sub-supplier level to help their EU buyers comply with strict European reporting standards.
EU will gradually expand CBAM after allowing supply chains to adjust.
Germany (by itself) is apparently out-producing the US artillery shell production.
* https://www.newsweek.com/germany-overtakes-us-in-ammunition-...
Russia's GDP is below that of Italy (and barely above Canada, who is in NATO):
* https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nomi...
If the Europeans really want to, they could produce a lot more by converting over to 'war mode'. Certainly they need to do more with current geopolitics, but there is no need to crank it to 11.
As an Italian there's definitely been a perceptible shift due to the increase in defense spending. Leonardo now makes TV ads (something I had never seen before), they advertise on newspapers (...)
Off topic, but it's funny to me how the Leonardo TV ads basically skips over the defense part https://www.youtube.com/watch?v=oXytSNOt_0I
If anything, the major gap is the EU's lack of cheap drone manufacturing, but even that is starting to make progress with help and integration from Ukraine.
> In 2025, Russia produced an estimated 7 million artillery shells,
vs.
> Germany has rapidly scaled up artillery ammunition production, led by defense giant Rheinmetall. Output targets have surged from roughly 70,000 shells per year prior to 2022 to a projected 1.1 million to 1.5 million rounds annually by 2027–2030,
so now vs. "projected" and Russia still heavily outnumbers the former Nazis.
Which is to say give me a fricking break, I live in the closest EU and NATO capital city to Southern Ukraine, I know my shit.
[0] https://www.propublica.org/article/general-dynamics-artiller...
I really would love to see this, but the sad truth is that there are no real alternatives for a very big amount of software products. In the end, the eu residents will simply have to pay more for a lot of software products, and that's it :(
Yeah, there will be immediate pain but if EU competitors can spring up because the American software giants are disadvantaged it'll slowly erode the reliance on US's software.
Then, because it isn’t on-premise anymore where you could just continue running without paying for the service contract you lose direct access to the product. So that might even mean whole companies going under.
You pull the plug the money stops rolling in. I don't know if you've ever tried to sell something vs buying something but buying is a ALOT easier than selling.
You can easily choose where to buy but choosing to sell is a lot trickier. Pull the plug on AI and the EU will switch to Chinese models. Trade negotiations and relations are very fragile and difficult to curate and maintain. Very easy to rip up.
There are entire governments in the EU with workflows built around Microsoft products that have no real 1:1 alternatives. If a governmental procedure stipulates that a ministry uses Windows w/ Office365, it uses Windows w/ Office365, no room for an argument. If anybody pulls a plug here, the consequences will be unimaginable.
It's nice that a single German state has switched to LibreOffice, but the rest of Germany, or the remaining 26 countries might take years, if not decades, to certify and permit someone else's solution.
Russia went into the war with armed forces that turned out as you say (possibly except the nukes, hard to tell unless they attempt to use one); the war forced them to develop substantial drone and anti-drone capabilities that the EU nations are not yet in a position to counter.
I suspect that if my country gave Putin what we give to the US - military bases where they can do whatever they please no questions asked, real-time intelligence access, unofficial favored supplier status for anything that might be control-relevant, quiet veto power over any national policy decision deemed "strategic" - then we wouldn't have to worry about invasion - from Russia anyway. Why invade what you already own?
I think that price is a little too steep, though. Not to mention that the US would then be at least as willing to topple governments/invade as Russia currently is.
The US are making a fortune on gas at the expense of Europe an it's not that the promise to buy gas is meaningless because unenforceable within Europe, it's that it was already happening in practice. And that makes Europe even more dependent on the US (while the complaint was that we could't buy gas from Russia and depend on them).
But this is also why the EU is aggressively pursuing and building up alternatives, including investments in Canada's ability to export LNG, but also buildouts of solar, wind, and batteries.
Solar and batteries come with their own dependencies on China, but at least those are a different sort of dependency than fossil fuels. If China stops exporting solar / batteries, the ones we have will still keep functioning for decades while alternatives are built up.
Unfortunately, this couldn't be further from the truth:
https://cleantechnica.com/2026/07/12/head-of-iea-roasts-euro...
Here are some specific numbers:
https://ember-energy.org/app/uploads/2025/06/many-building-r...
The EU is heavily investing in renewables, but mainly to phase out coal rather than gas, and it's absolutely not electrifying its economy.
You can see this in the EU Emissions Trading System. It covers about 40% of all emissions, but leaves out buildings (dominated by gas) and transportation (dominated by oil). Since electricity is covered, it actually encourages oil and gas over electricity.
Furthermore, member states like Germany are resistant to taxing gas higher than electricity:
https://www.euronews.com/my-europe/2026/08/17/germany-warns-...
Despite the wars in Ukraine and Iran, gas is still encouraged over electricity in many European countries.
China and some other Asian countries have adopted the opposite approach. They aim to replace oil and gas by all possible means, including coal (although it's not the preferred choice).
No. Van der Leyen also promised EU investments into the USA. This is betrayal as well; that money should go into EU countries. Or Canada.
I can't understand why there isn't a single country that did that.
That is quite the comparison. It also doesn't seem correct at all. What world are you living in where Zohran is a populist demagogue?
N.b. if you look up 'populism' on Wikipedia a huge portion of the page explains the contested term is sociologically vague and did not have the negative connotation it does in mainstream discourse. Most people are not aware of this.
Pointless, incredibly bad faith bothsideism. Zohran was the only one in the NYC mayoral race to believe in actual democracy. Cuomo's whole campaign was "elect me because the other guy is a muslim, and I won't do anything during my mandate, like the previous mayor". Zohran did actual campaigning on issues the electorate cared about, and so far has delivered on his promises.
I don’t see news about what he has accomplished. Can you give a few examples?
Canada should abolish their tariffs and let the clowns in the US do whatever they feel like.
Since you are getting hurt you play tit-for-tat to get the other to knock it off.
So you add export taxes to items they care about (oil/fertilizer/...) and compensate the losses incurred by existing industries.
This hurts both countries but will get a result - either free trade or no trade.
In the meanwhile, Trump's entourage has derivative bets on this and take massive proffits shorting everyone. For them, this is all massively profitable.
He did a pretty good explanation of the difference between theory and practice in his Rest is Politics Leading podcast interview recently :).
Sticks in my mind and well worth listening.
China put tariffs specifically on the sectors that voted for Trump and depended on sales to China.
When the other party is not playing the same game, or not playing in fairness, then the best game theoretical move is to cease cooperation and retaliate.
One note: aren't these sentences strange - like a series of half-thoughts? Especially the 2nd paragraph.
> Our government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market. > > We have worked in that context. To strike a fair deal that would provide the best access to the U.S. market and greater certainty to Canadian businesses and workers.
Yes, but the pain is likely unavoidable. The alternative is much more pain, but slightly later/more spread out, from repeatedly giving in.
Yes, I had the thought that it sounded a lot like speech.
Thanks.
We'll go trade with other countries and stop giving the troll the attention it craves.
Ganging up on the US isn't likely to work well.
Is out of ammo.
Cannot win against Russia in the proxy war with Ukraine.
Cannot match China with their long term energy plans.
Has debt that explodes
Has a president that sells early access to his tweets for 100k$ a year ; insider trading in the open.
The USA are not in a good posture right now.
The US administration twists facts to suit their agenda. For example, they often complain about the trade deficit the US has with other countries. However, that deficit often (depends on the country) only exists if you exclude digital goods (Microsoft, Google, Apple, etc.).
If the rest of the world were to restrict the import of those digital goods, in the interest of fairness, the tech lobbyists would swarm D.C. in panic.
“What’s at stake in the Canada-U.S. trade deal? How looming tariffs could cost Canada 90,000 jobs”. Trevor Tombe, professor of economics at the University of Calgary
https://thehub.ca/2026/08/20/whats-at-stake-in-the-canada-u-...
it is easy to tax exports, but this makes the export less profitable (for the entity making that export). Unless you mean the producer raises prices to cover the new tax - in which case, the export is now more expensive, and less of it gets exported.
It doesn't really help with the tariff situation much in any case - a political problem requires a political solution (such as reciprocal tariffs). Both sides hurt, and there's no good outcome.
Depends whether demand is flexible or not.
Plus when one side is an unreliable negotiator (the US) there’s not much rational behind continuing.
That's an understatement. Hypothetically if Canada were isolated from the world, it would regress in the quality of life in 10 years. The most capable Canadians have moved out, mostly to the US. The average Canadian has unwarranted sense of nationalistic pride about them (compared to their neighbors).
Isolate US from the world, and assuming that the govt does not meddle too much with local businesses, in 10 years they will bounce back to being more self sufficient than it is now.
Basically he was elected to stand up to Trump and as an economist, come up with a strategy. He initially appeared to do that, but given that it largely hasn't swayed Trump, he is now backing off most of it. You could argue it's a strategy worth trying since to buck-for-buck hasn't worked, but you could also make the point that the electorate, without being told what the plan is (duh), feels he is weakening our position.
A lot of the strategy has been to wait it out and expect uproar from the US people which... largely hasn't come.. yet?
It's Congress who has the power to tax. If Trump wants tariffs he needs to propose a bill that creates them or gives him clear powers. The legal scholars in his cabinet know this, so why has he not proposed a bill?
It seems like if the other side agrees to a deal too easily then Trump doesn't think the deal is good enough. He only likes deals where the other side is getting screwed and has to be coerced into signing.
That's a great observation. So basically everybody should be saying no to him all the time to limit the damage because as long as there's one yes the stupidity will only grow.
I'm so glad there wasn't a single yes, when Greenland popped up.
The USA is increasingly the source of economic and military destabliisation in the world and it's getting real hard to justify being the best little doggy for them. I'm not suggesting any action more drastic than calling a shit deal shit, and frankly it's pathetic and embarrassing that this is such a rare occurence.
And yeah, maybe some miracle corrective action will begin with a new president but the thing is, that will necessarily include restoring our "special relationship". You're better off refusing a bad deal outright, rather than trying to reneg later.
Anyway, you have kings, you just elect them and call the presidents, but they have basically the same political role and powers as George III did in the 1790s cut-and-pasted across. The USA needs to get itself a decent parliamentary system.
[0]https://en.wikipedia.org/wiki/The_Short_Reign_of_Pippin_IV
Politicians tend to not want to do things that display them as directly responsible for eroding their support base’s quality of life.
But it isn’t politically possible for Canada to do this. The two segments that would be most effective, oil & gas and potash happen to come from provinces that already have significant issues with the federal government. One is even flirting with separation, which would be inflamed by export taxes.
Canada is also very venerable to similar actions by the Americans. Refined oil products, fertilizers and oil & gas pipeline transit all come from the Americans.
It is fun to imagine Canada sticking it to the Americans with export taxes, but it will never happen.
But I think overall it does not really matter. A war is a war, so there will be no real winners.
Here we go again.
> Canada supplies the overwhelming majority of U.S. maple-syrup imports.
Canadians are way too nice to do this, but it would be sensational.
US's largest trading partner is Mexico. The biggest thing we import from them is automobiles & auto-parts and the second largest is computers and electronics.
We all understand the benefits of trade is meant to bring in - such as goods manufactured by countries whose prowess making those goods better to the benefit of all.
So it's interesting to look at this example. Automobiles - does Mexico have a prowess in that segment? A tell tale sign of "no" is that Mexico has no domestic auto brand. In other words 100% of auto exports from Mexico is actually US automaker production that shifted to Mexico is persuit of cheaper labor, weaker unions, and less environmental and other regulations that gets in the way of manufacturing.
I am focusing on this example because it's the largest segment of our trade with our largest partner - literally the biggest thing the US imports is our own shifted auto production.
The second largest segment is also interesting. Mexico isn't known for its computer and electronics brands either. What's going on? Turns out that Asian manufacturers (eg Lenovo) do the very final assembly in Mexico but all the components come from Asia. It's not actually "efficient" to do this except that when assembly happens in Mexico those components magically become a "north American good" by NAFTA terms and can go all over US and Canada with no duties or tarrifs or restrictions.
So the second largest segment with our largest trading partner is Asian manufacturers exploiting a NAFTA loophole.
As an American who inherently is pro trade (I am an MBA...) this is revealing about the obvious disadvantages of how trade has been configured. The auto example is literally NAFTA being used to bypass American labor laws and environmental regulations while maintaining access to our market by American companies themselves. The electronics example is Asian companies bypassing the long standing trade conditions by whitewashing Asian products as north American goods.
It is obvious that trade pre-Trump was not set up in a smart way from American perspective. The auto is a great example: the government simultaneously made it very hard and expensive to manufacture at home, and very easy to shift to Mexico.
I don't know the details with Canada as much but I no longer assume things were working great and US is meddling lens by default.
I'm concerned that governments worldwide are finding tarrifs to be a popular (and exciting!) way to exorbitantly increase the size of governments and goverment coffers which are then used for populist aims. We need to re-educate people that tarrifs are bad.
Trump is officially billions richer since he became president for a second term.
Officially.
One must stand up to bullies otherwise they’ll keep at it. Until the US population feels the pain the rest of the world has been dealing with, nothing will change.
What he’s been doing is only good for his grift game, not the USA.
If you want to bring manufacturing home, you frame a 5-10 year progressive tariff plan with tax incentives, financing, and grants to help build the infrastructure to progressively fill the demand as the tariffs roll in. Commerce thrives in stable environments with predictable changes, not in chaos and broken promises.
Wonder how long it’ll be before Trump throws his toys out the pram again. Wouldn’t be surprised if he moans his allies have abandoned him.
Why is the exposure is asymmetric? ~70% of Canadian exports go to the US - the reverse dependency isn't close to symmetric. Unemployment, business investment, and the CAD are all deteriorating far more deeply and rapidly than any impact on the USA. Canadians are carrying the highest household debt burden in the country's history now; and its natural resources can't plug the gap unless Canada is willing to kill net zero and other environmental rules.
These new tariffs are actually a retention play. Canadian businesses have been relocating to the US since the trade war started, and the countervailing tariffs are aimed at making that move less attractive. But the move is undermined by its target. Canada's household debt and wealth destruction are shrinking the value of the Canadian market itself, so the incentive to stay keeps eroding regardless of what the tariffs do.
The situation is so lopsided one has to assume this is a coordinated bid by certain forces in Canada and the US to shatter the Liberal party and its coalition with New Dems and Greens. Ask yourself how bad it has to get for Canadians before they lower their elbows and vote differently?
That is where this is headed.
"~70% of Canadian exports go to the US"
If you remove oil[1], Canada has a trade deficit with the US. And strangely the US has never said an iota about tariffing or restricting oil, and on the contrary keeps trying to increase it. Like Trump's big celebration was about hoping to revive a pipeline.
The vast majority of Canada's economy is internal, and rapidly non-US. We replace what we buy from the US. Somehow lots of countries on this planet don't rely upon being a subjugated feeder to the US.
>Unemployment, business investment, and the CAD are all deteriorating far more deeply and rapidly than any impact on the USA
Canada has fielded better employment numbers than the US. Business investments are at an all time high (lol, slop purveyor now claims that actually no, that's bad too!). The CAD has been gaining over the past few weeks.
Stop writing hilariously stupid slop on here.
[1] The US actually makes hundreds of billions of dollars processing and exporting Canadian oil, and it was yet another foolish decision of Canada not to process in country. But don't worry, exports to other destinations are rapidly increasing.
Like over the last year we (Canada) should have utterly obliterated the US from any element of the Canadian supply chain. Instead everyone just keeps expecting things to return to normal so no one makes the necessary investments to stop it at the border.
Americans voted for Trump, a child-rapist stunningly stupid criminal, twice. It should never return to the way it was.
In 2016, an anonymous woman filed a federal lawsuit alleging that Donald Trump raped her in 1994 when she was 13 years old. The lawsuit was voluntarily withdrawn that same year, before the allegations were adjudicated. No court found that he committed the alleged assault.
I think he will cave pretty quickly and Canada knows it.
So expect Trump to start spiralling. Also expect lots of astroturfing about how desperate Canada is and that it has no choice (one of those hilarious slop purveyors appeared below).
Canada should begin the process of withdrawing from USMCA, and the truth is that NAFTA cum USMCA has worsened Canada's lot over the past four decades compared to peers. Trade agreements with the US are worthless, and even negotiating with that Epstein pedo cabal of grifters is useless. It sounds like the Canadian team were foolishly going to give in to many things (any concession of any form always comes back to hurt you), but at the last minute Howard "Epstein Island" Nutlick swooped in and tried to extract even more, undoing it all. Which...thank you Nutlick, you disgusting greaseball. You did us a great favour.