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Ok I've been wanting to ask this and all the articles don't really address it so I'm confused.
The whole rhetoric is that Trump's tariffs will impact the citizens with increased prices and it's really just going to cause economic harm. Like cool, I can understand that. But why is Canada then performing the same action effecting their citizens? I get it's retaliatory, and suppose to expedite (hopefully) a return to normal trade policy. I just don't get why this is the move when it's a bad move in the first place (two wrongs don't make a right and all). Please be gentle, I'm honestly just confused.
Trump's tariffs are universal. Meaning that even in cases where the only practical option is Canada, for example potash, they have to suffer a direct 25% price increase.
The Canadian tariffs are highly selective, we only tariff goods that have alternate non US suppliers at similar prices. In this case the tariffs would mostly reduce market competition without directly affecting price.
I think the better approach is to not enforced the digital lock aspects of the free trade agreement and have Canada be a leading repairer of farm and industrial equipment.
Aluminum is another one, apparently. The element is everywhere, but it takes massive amounts of electricity to get in metal form, which we just happen to have from all the dams in great lakes region.
Our Aluminum companies are literally planning to change nothing. They expect their American customers will just eat the cost.
Doesn't Belarus also produce potash? I thought they were dropping sanctions against them to get it
I mean yeah, but Canada produces an ENORMOUS percentage of the world's potash.
Edit: checked the numbers. Canada produced ~38% of the worlds potash (25mil lbs), while Belarus produced 5-7mil lbs, most of which already goes to China, Russia, and India. Canada exports 46% of our potash to the US, meaning the US could buy ALL of belarus' potash and still not meet current supply.
There really aren't any other moves to take. It's either this or lie down.
Also, I will say that tariffs can be a lot easier to manage if you only implement them against one of your trading partners. While major imports from that trading partner, and any goods produced with any of those imports, will see a price hike, most Western countries have very diversified economies and can make up the difference elsewhere. The real trouble begins when you start having blanket tariffs affecting all of your major trade partners, which seems to be Trump's plan.
It's still going to hurt - we import so much from the US that this is going to impact Canadians no matter what (even before price hikes in unrelated businesses starts).
If the tariffs are taylored correctly they can cause more pain in the US while minimizing cost to Canada. For example, us grain is not cheap and you can make it so that Canada buys from other countries at a similar cost. This will hurt farmers in the US (a key group for Trump) while not really hiring Canada.
Make it hurt for the morons that support nazis
My understanding is that when the americans institute their tariffs, all canadian products become more expensive for americans and not price competitive with local american products. This results in a decrease of purchasing from Canada.
If we do nothing, then Canadians are still buying just as much american as before and there are little to no consequences for the tariffs
With tariffs on both sides, the effect is roughly "equalized" in that we are both now buying more local goods and less trade over the border
Higher import taxes (tariffs) on Canadian goods for Americans will increase the price, presumably reducing the amount of these goods that Americans will buy which hurts the Canadian producers. The only thing Canada can really do is hurt American producers in the same way, hence increase tariffs to reduce Canadian consumption of American goods and hurt American producers just as much (or preferably more). Hurting each other is a loss-loss strategy though, which explains why trade wars typically do not have winners only losers…