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[country] may have no other place to sell to, at least immediately, and at the same transportation cost. Moreover, unlike US, [country] may not have diversified
by aborsy 2y ago
[country] may have no other place to sell to, at least immediately, and at the same transportation cost. Moreover, unlike US, [country] may not have diversified its trade. The US may be able to control inflation like last time, by buying some of these goods from elsewhere and through interest rates etc.
- dutchbookmaker 2y agoIt is also through the exchange rates. USD to CAD has front ran a lot of this already. 1.45 is crazy. The idea Canada can so easily re-route trade is absurd. Especially when the trade is going to be settled in USD. I have been trying to understand the point of all this and come up empty this morning. I would have to assume it is for enormous leverage in the trade deal that ultimately ends all this. The leverage this gives the US in a trade deal, especially with Canada is pretty incredible. 25% is just so insane that it probably does cause Mexico and Canada to concede to whatever Trump wants in a trade deal and in short order. I think this is why Trump won't even take a call from Trudeau right now. It is a leverage tactic and then when they do talk what leverage does Trudeau have? Basically zero.
- nightowl_games 2y agoYes, the USA has massive leverage over Canada on basically every front. We are a small child standing next to a massive person with a gun. But what is the point of destroying us? Our economy is already down. All of our tech elite move to Silicon Valley. Our energy infrastructure cant get off the ground. The USA dictates so much of what Canada is able to do. What is the point of squeezing us more? We have so little we can offer you. We've already given you the lives of our soldiers as we follow you into pointless wars. What more do you want? The pennies in our pockets?
- ModernMech 2y ago> What more do you want? The pennies in our pockets? Pretty much yeah. US wants to tax you, subject you to their religious laws, and take your oil. What are you willing to do about it?
- ygjb 2y agoWe are hoping the electorate in the US doesn't want to find out. US leadership has threatened Canada and other countries with using economic or military force for annexation. Canadians are hoping that saner heads will prevail, but it's not looking very good. We are very much aware that our military has been underserved in every way by Canadians, and that was part of the reason I chose not to continue my military career. In the meantime, we are carefully and cautiously reminding the United States that we fought many of the same wars and learned the same lessons as the US military about how insurgencies are fought, and while many of our friends, family, and neighbours are American, we are not, and do not want to, and will not be American. Do with that what you will.
- ModernMech 2y agoI fear that in hoping cooler heads will prevail, you've only set yourself up for failure. Trump and Musk will take advantage of your willingness to see them as better than what they are. That's how they win. Just remember they are doing Nazis salutes and setting up a concentration camp in Cuba. There are no more cooler heads.
- dinkumthinkum 2y agoWell, that's nonsense. No one is doing "Nazi salutes" nor setting up concentration camps. I mean if the ADL say it was not such a salute, methinks thou doth protest too much. As far as concentration camps, this is just leftist hyperbole. Visit Germany and Poland go see what real such things were like, this is more offensive to those victims of atrocities then the made up things you are referencing.
- ModernMech 2y agoMusk literally did a Nazi salute behind the presidential seal. And Trump announced concentration camps at Guantanamo Bay, so you're wrong there as well. I'm not getting my news from leftists, I'm getting it from the two co-presidents. You just have to watch what they do and say in public to come to these conclusions.
- aborsy 2y agoI blame Canadian leadership. There should have understood the risk long ago. There are other problems as well due to weak management. The claim about drugs is a legal justification for the use of emergency power. Canada isn’t causing problems for US. These tariffs are harmful and unfair to Canada. It makes you wonder what “ally” means with US.
- nightowl_games 2y agoSorry - what do you blame Canadian leadership for? What did they do?
- aborsy 2y agoCanada’s leadership could have done better in the past decades (not that they are directly responsible for these tariffs). * Canada funds and invents new technologies in early stages, but fails to commercialize them: AI, smartphones, pharmaceuticals, … * Canada hasn’t introduce measures to retain its talent. It’s too easy to be trained in Canada and work in USA. * Canada hasn’t diversified its trade. It exports around 80% of exports to a super power, putting itself in a vulnerable position. * Canada’s economy focuses on natural resources, oil, finance and services. It should do a better job in more productive sectors (tech, manufacturing, etc). * Canada’s immigration is insane. * The housing crisis, inflation, reduced GDP per capita and productivity are the result of poor management. * Canada should stay neutral with respect to internal politics of major powers. The power swings, and liberals should not speak ill of republicans. * Canada should meet its NATO commitments. It contributes less than most members. It should think of defense. * Canada’s universal healthcare system seems to me costly and hard to sustain, and needs to be reformed to lower public costs. Thankfully, tariffs are delayed, and hopefully will not be slapped back.
- nightowl_games 2y agoI agree with your points in general but I'm still confused - how do you connect any of these to the USA tariffs? I'm specifically asking you how you can justify this statement "I blame Canadian leadership [for the tariffs]."
- mrighele 2y agoCanada, Mexico and China make up about 40% of the imports of the USA. "Buying some of these goods from elsewhere" is not going to be easy.
- rstuart4133 2y agoMaybe. And maybe it goes in reverse, like it did the the China vs Australia trade war. China was the big boy in that dispute, and it's Australia's biggest trading partner by country. It wasn't pleasant for either side, but in the end Australia diversified much faster the China. Interestingly, Australia didn't retaliate against China. We keep buying the Chinese stuff at the usual cheap prices, and found other markets for our goods they banned. China paid more, or did without. So we didn't have any leverage, but China normalised trade with Australia after a while anyway. I have no idea which way it will go here, but "USA big, Canada little, so USA wins" isn't a foregone conclusion. Perhaps the most nimble nation wins. The most nimble nation usually isn't the one putting up trade barriers and antagonising neighbours and friends. I reckon you'll know the outcome by the end of Trump's term, if it said term doesn't continue forever.
- thunky 2y ago> by the end of Trump's term, if it said term doesn't continue forever Comments like this, sarcastic as it may be, help to normalize the idea.
- carbine 2y agogood example. worth noting that there may well be strong appetite to rapidly diversify and lock in other trade agreements in Canada to offset this battle with America. America will not be able to do the same right now (due to Trump's rabid isolationism, and declining trust on the part of other countries).