The US is now at trade war with Canada

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Taleweaver

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I know, I know...I'm late to the party. But it seems like this is going to be yet another major USA failure in the making.

I'll try to keep it brief(1). Canada was just "another country" Trump decided to tariff back in April last year. But what's different from most other countries (alas not all) was the constant hinting of Donald Trump that Canada should become a vassal state of the USA. Stupid "jokes" where prime minister Carney is portrayed as 'governor', maps with the US flag over the entire Northern American continent, renaming of lakes, and so on.

This seeped into trade negotiations, which eventually caused Carney to leave the negotiation table because Trump's extortion tactics were too much to bear.
...and so the next trade war seems to have started. Trump raised tariffs, Canada makes counter tariffs.

What's your take on this? Should Canada seek delay for this tariff war? Should they just take it? Are they right to put up tariffs on their own and boycott the USA in e.g. tourism?



(I've written way too much on this and with far too little fact checks. Perhaps I'll put it in a blog one day, but for now the above has to make do...)
 
I know, I know...I'm late to the party. But it seems like this is going to be yet another major USA failure in the making.

I'll try to keep it brief(1). Canada was just "another country" Trump decided to tariff back in April last year. But what's different from most other countries (alas not all) was the constant hinting of Donald Trump that Canada should become a vassal state of the USA. Stupid "jokes" where prime minister Carney is portrayed as 'governor', maps with the US flag over the entire Northern American continent, renaming of lakes, and so on.

This seeped into trade negotiations, which eventually caused Carney to leave the negotiation table because Trump's extortion tactics were too much to bear.
...and so the next trade war seems to have started. Trump raised tariffs, Canada makes counter tariffs.

What's your take on this? Should Canada seek delay for this tariff war? Should they just take it? Are they right to put up tariffs on their own and boycott the USA in e.g. tourism?



(I've written way too much on this and with far too little fact checks. Perhaps I'll put it in a blog one day, but for now the above has to make do...)
I hope and believe that it will be one of the ultimate screwups by the Trump administration. For years and years Canada was content with the status quo of having the US as one of the main importers of Canadian goods. Now that this has happened, basically most Canadians are of the same mind that they'll take the effort to sell somewhere else.

The fact that an experienced central banker is at the helm just makes it all the better for timing. Carney is going all over the world making new trade deals in order to reduce the need for the US. He's currently hosting an investment summit in Toronto to get other countries to invest in Canada. There's also talk about Canada being an "associate" member of the EU, which would open the door to easier travel and trade.

The US is extremely intertwined with trade currently, so it wouldn't be a complete replacement. But over time, it will definitely accelerate economic diversification that makes the US less important to Canada.
 

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