Trade War?

[80watts]

So with the PM of Canada announcement of trade sanctions starting July 1 against the US; What is actually happening here?

1. It back and forth type negotiating for NAFTA,
2. Putin wants his golden boy to destabilize the Western World's economy,
3. Trump's Company making billions off the American economy due to the ups and downs of the stock market created by all his Twitter outbursts. Pls note this could be why Trump never released his tax information, to see if his company's businesses would have conflict of interest.
4. The PM is gonna take that steel and build alot of high rises and sale affordable condos(3 to 5 bedroom condos) to below average income families at cost in the big housing markets in Canada. (damm forgot to add that 3% lifetime mortgage in for those condos)
5. The powers to be want inflation to go up and hence the appropriate rise in interest rates to make the big money lenders more money.
6. People in Canada and US that currently have stable jobs, will lose their job and their house, so the big banks make the money on the re-possession of the house; thus make off with the house owners investment of his own house....


For # 1 I would guess the Cdn gov has identified republican states for congress and senate, seen what products are coming from those states and chosen tariffs wisely/strategically to put pressure on the republican party members by taxing the states goods that go to Canada.

If gas goes up in BC its not from the Trade stuff, but because the BC premier has his head stuck in the sand like an ostrich......

 

[badbadboy]

So according to media reports Mike Pence called Justin Trudeau and said the NAFTA deal had to have a Sunset Clause which allows any party to walk away after five years. Trudeau said no and cancelled his visit to Washington the next day.

Both Mexico and Canada have said no to the Sunset Clause. Given the new trade duties effecting both Canada and Mexico, it may be unlikely they return to the bargaining table soon.

So in response, #45 irrationally implemented import duties on steel and aluminum at 25% and 10% respectively. The big culprit in this mess is China whose imports are much larger than both Canada and Mexico combined. He figures he can bully Mexico and Canada into a trade deal that heavily favours the USA. Luckily nobody has blinked yet.

#45 used an obscure clause saying the Administration could implement these duty's on countries who are a security risk to the USA. After all these years Canada is now known as a security risk to the USA. I can't believe I actually typed that sentence but know its not even worth trying to qualify if there is any substance to it.

Canada has now outlined $16.6B in trade that will effect Canadian Companies adversely and are putting a list together totalling the same amount of trade duties to be applied to the USA imports into Canada. Everything from Hershey Chocolate bars to Blue jeans will have a major bump in duties. The list is apparently aimed at the manufacturing origin states that voted for #45's "make America Great again". It will adversely effect them and hopefully they will take note that #45 started this scrap and they are going to pay for it.

 

[MissingOne]

This is probably going to be a good thing for Canada in the long run, in that it may force us to be more self-reliant, and not always count on the huge US market for our economic well-being. The US market will always be very important to Canada, but we need to be in a position to do without free access to it, if we must.

This is also a good time to think about our reliance on the US military to protect North America.

 

[felixthecat]

So according to media reports Mike Pence called Justin Trudeau and said the NAFTA deal had to have a Sunset Clause which allows any party to walk away after five years. Trudeau said no and cancelled his visit to Washington the next day.

I like the tough stance. Just think of the perspective Trump would screw us up again with this renegotiating bullshit at the end of his potential second term.

This is probably going to be a good thing for Canada in the long run, in that it may force us to be more self-reliant, and not always count on the huge US market for our economic well-being.

Self-reliance is overrated. Trade is beneficial to both participants, dropping it would set us decades back economically.

Say, most Canadians would disagree that giving up their iPhones would be a good thing. We won't get our own exact equivalent of Silicon Valley or cheap labour to produce iPhones (or even Blackberries). Have to trade something back for those.

 

[clu]

Say, most Canadians would disagree that giving up their iPhones would be a good thing. We won't get our own exact equivalent of Silicon Valley or cheap labour to produce iPhones (or even Blackberries). Have to trade something back for those.

Yeah but iPhones are made in China, so we're good.

 

[hankmoody]

BUY CANADIAN !!
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[se7landrover97]

This is probably going to be a good thing for Canada in the long run, in that it may force us to be more self-reliant, and not always count on the huge US market for our economic well-being. The US market will always be very important to Canada, but we need to be in a position to do without free access to it, if we must.

This is also a good time to think about our reliance on the US military to protect North America.

Hope this will be blessing in disguised. You're right... It's about time we look for other buyers rather depend so much on US market.

 

[MissingOne]

Self-reliance is overrated. Trade is beneficial to both participants, dropping it would set us decades back economically.

I in no way suggested that we isolate ourselves from trade. I myself make a good living in an industry that couldn't exist without international trade. I only meant that Canada should be less reliant on one single market, the US. They will probably always be our biggest trading partner, but more diversification to other markets will make us less vulnerable to the whims of a Trump.