The horizon is not so far as we can see, but as far as we can imagine

Oddly, Canada Has More Leverage In A Trade Deal Than Anyone Except Maybe China

Trump:

Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!

The current plan is 35% tariffs on everything not covered by the USMCA trade deal.

But here’s the thing: Canada buys more US exports than any other country in the world. In fact, ex-oil, we have a trade deficit with the US.

Canada is the only country other than China that has significantly counter-tariffed the US. One reason why is that Carney wants to build back Canadian industry and to reduce Canadian vulnerability to the American political fits. Since the US is where Canada get its goods, counter-tariffs act as subsidies for manufacturing.

While I tend to think Canada should be making up with China, it’s possible that Prime Minister Carney is keeping the trade relationship sour there to help Canadian manufacturing. After all, Chinese goods are even cheaper than American ones and Canada definitely can’t compete. (No one actually can, more on that later.)

I do find it funny, that Canada, which Americans think of as a “wimp” nation is one of only two countries counter-attacking Trump hard. I mentioned in the past that the idea that Canadian politeness meant weakness was wrong. It’s also very American to think that someone being polite or apologizing when it’s appropriate means they’re a wimp. Very American.

Meanwhile Canadian tourist visits to the US are way down, and US state Governors are squealing, as is Las Vegas.

You tell Canadians you have contempt for them and that you want to take over their country, and strangely enough, they don’t like it.

Maybe China and Canada can bond over their shared enemy. America.

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16 Comments

  1. Tony Nyro

    and this too –

    https://www.theglobeandmail.com/business/article-critical-metals-mining-permit-greenland-resources-molybdenum/

    Congratulations Ian. If anyone deserves to live in a great country, it would be you.

  2. Purple Library Guy

    There has been a tendency for tariff negotiators to treat the negotiations as purely economic things, where only economic measures are on the table and there is no politics involved. This is a mirage to start with, but right now doubly so. I certainly think that Trump tying politics (on Gaza currently) to tariffs reminds us that we should be doing the same. That is, Canada has always been a dependable ally/stooge to the United States. We back them in a whole lot of areas. But they’ve never really been OUR ally, and Trump is acting more like an enemy.

    So, why should we keep backing them up? And why should we not make potential political measures bargaining chips? So, Canada can say, if you tariff us we will do things such as:
    –Drop our tariffs on Chinese goods such as cars.
    –Generally pursue rapprochement with China and pledge not to assist in any military actions against China
    –Send massive aid to Cuba, like food and solar panels
    –Pledge to make whole any Canadian companies that fall victim to US enforcement of illegal sanctions on for instance Venezuela, and help them sue in the World Court, at the WTO and any other relevant venues
    –Generally oppose US meddling and coup attempts in Latin America by consistently supporting human rights and international law there
    –Kick US personnel out of northern Canadian NORAD installations and stop sharing the data

    All this is just for-instance. There are lots of areas where we can withdraw Canadian support, but few areas where the US can withdraw support because they never supported us and Canada had less international ambition in the first place so there’s fewer handles sticking out.

  3. NR

    I disagree that Americans think Canada is a “wimp” nation, Ian. That’s not a sentiment I’ve ever heard expressed either in my life or in popular American culture/media. Maybe some hard-core MAGA types think this, but outside of that, I don’t think Americans believe this at all.

    France is the only nation I’ve ever heard stereotyped as a “wimp” nation (which is a whole other topic of course). Definitely not Canada.

  4. Like & Subscribe

    I don’t find this offensive in the least, your post, and I’m an American. I know where I stand with you and apparently all Canadians and that’s a good thing — to know where one stands. I am not what you say I am with your white-washing of ALL Americans, but oh well, what can you do? If that’s what you want to believe, far be it from me to convince you otherwise.

    The fact of the matter is, most Americans don’t know much about Canada and if they know anything about Canada, it doesn’t occupy too much of their thought process on a daily basis.

    This is a kerfuffle between Canadian elites and American elites or factions thereof. Yes, the unwashed will get steam-rolled as this spat further develops, but when has it ever not been thus?

    Having lived in southern Florida long ago, I have to say that no Canadians is a good thing. No more people period in Florida is a good thing, Canadian or Russian or Cuban or Caucasian or you name it.

    Florida is crammed to overflowing. It’s unbearable and yet they keep coming except the Canadians — for now.

    Carney is biding his time with the Trump regime in hopes that a more Canadian-friendly regime comes to power in 2028 and the Dems take control of Congress in 2026. That is why Carney is not betrothing Canada to China if China will have her.

    So, the question is, why does Carney despise China to this degree that he’s willing to gamble for regime change in America in a couple of years versus endeavoring to partner with China against America — their common enemy?

  5. Googoogajoob

    I play online games with Americans I’ve made acquaintances with over the years and while I don’t know if I’d go as far to say they see Canadians as wimps, I’d definitely say the intersection between American exceptionalism and how cloistered Americans are seemingly kept about the world outside of their borders is where the arrogance(?) tends to bubble up time from time.

    And in a similar way to what we’re seeing play out with these trade negotiations, the best way to handle it is being able to counter punch when necessary rather than simply rolling with the punches. At least in my experience, being able to show some heart oddly enough earns their respect.

  6. KT Chong

    Actually: EXCEPT China and Russia.

    It’s all about resources.

    The US, Canada, China, AND Russia are the four most resource abundant/endowed countries in the world.

    Resource abundances/endowment = Resource richness + Resource diversity.

    Countries like Saudi Arabia are rich in a single resource, but they are NOT resource diverse. China is number five or six in terms of being the richest in resources in the world BUT number two or three in terms of being diverse in resources.

    China is number two or three in terms of being resource abundant/endowed, (which is a consideration of BOTH resource richness + resources diversity,) AHEAD of Russia.

    Both the US and Canada are very resource rich and diverse countries. Russia is very resource rich and diverse, but behind China in terms of diversity.

    Europe is a resource poor continent, so they are very vulnerable.

    India is very resource poor AND not diverse; it’s not even in the top 20 in either category, which is why India is screwed.

  7. KT Chong

    Of course, if the US and Canada COMBINED, the new entity will be unstoppable. That is why Trump wants to annex Canada.

  8. Joan

    I agree with NR that I didn’t realize Americans in general regard Canadians as wimps. I live just under the Canadian border and can respect people who deal with even harsher winters than we do.

    On the other hand I’m unfortunately not surprised that some Americans might view Canadians as wimps. Thuggish and ignorant, I’d say.

  9. different clue

    If the US and Canada combined, the two-country’s-combined Overclasses would crash Canada down to an American level and then crash both down to zero together.

    A combined Canadamerica would not be unstoppable. It would be unsaveable and then unsalvageable.

  10. mago

    One of my favorite road trips among many was across Alberta to Vancouver, camping out along the way, cooking and even sleeping on picnic tables in late October. Nobody was around Lake Louise as my two friends and I partially hiked the perimeter after cooking oatmeal on a Primus stove while freezing our hungover butts off.

    Always had a warm spot for our northern neighbor even though the place is too close to the Arctic Circle for my bones.

    The latest Trudeau regime with its sniveling foreign policies was too much. PLG speaks to sane directions, which are totally contrary to what that regime took towards Haiti, Cuba, Venezuela and Mexico. Serve your masters puppet boy.

    And oh, yeah. Covid. Remember that? How about the truckers strike and freezing bank accounts?

    What about Ukraine and Nazi salutes in parliament? Welcoming Nazi Ukies to your neighborhood?

    Sending arms to Israel and pretending that you’re not?

    I dunno. Canada’s underwear has fewer shit stains than it’s southern master, but it’s gonna take a while to scrub them out.

  11. The Heretic

    To the Purple Library Guy,

    Canada lives beside a very militarily powerful country with an unhinged power and government elite, now led by a narcisstic and potentially more unhinged leader. We must maintain our distance and our dignity, and yet not provoke the unhinged country.

    We need to now play the role of a middle power… we should re-affirm our friendliness to the US, but when a friend is badly drunken and demands that we drink with him, we can firmly but politely refuse. We should never bootlick another country, unlike the EU, or Japan, neither should we provoke them to anger … we are right beside it and no one can save us if they decide to get violent. (Although there is a huge reputational cost to them if they do…. And a few saner heads (and sadly they are very few) would probably strongly advocate against a violent takeover, for although the US could certainly gain us, but they would absolutely lose everyone else in the world, save the EU). Hence, we should not let them think that we would align with their enemy or take a military position against them. We can still maneuver quietly, prepare our own homegrown technology and industry and alliances so that we can detach from them if necessary. We can re-open defacto rapprochement without explicitly endorsing anyone. And we must watch for any stirrings for any ‘Colour Revolutions’… and we should be watching Albert and Saskatchewan, as the colour agents are not doubt distributing packets of ‘green bills’ there.

    We have to walk a very fine line… one thing going for us is that Carney was a central banker to both Canada and England… the emperor likes to deal with people of status and competence, hence he would shit on any perceived weakling or incompetent (Van der Leyen, J. ‘I March at Pride’ Trudeau, and the likes). And carney, having dealt with the monstrous egos of investment bankers and executives, might have some good instincts concerning the would-be-king.

  12. different clue

    ( funny unrelated photo)

    Someone is trolling the Christianoids.
    https://www.reddit.com/r/pics/comments/1megxnj/gay_sex_prevents_abortion_columbus_oh/

  13. shagggz

    different clue is right. Neoliberalism’s talent for squandering resources in fantastically idiotic ways would render Canadamerica most stoppable indeed.

  14. Like & Subscribe

    What American governance and the American elites, the establishment if you will or a faction or factions thereof, think of Canada can be and is quite distinct from what the “average” unwashed American thinks of Canada and Canadians.

    If you’re referring to my previous commentary where I revealed how Diefenbaker described the American establishment’s perception and treatment of Canada, I wasn’t describing my view per se. I was instead speaking plainly. I assumed that would be understood.

    What is my view about Canadians and Canada? I don’t have just one view. It’s complex and one answer doesn’t come close to addressing that complexity. Canada and Canadians is/are not a homogenous monolith any more than Americans are. For you Canadians who think you know America and Americans like the back of your hand, that’s vanity and hubris and, in fact, lazy and ridiculously simplistic.

  15. Ian Welsh

    The Catholic judges on the court have been pretty open about how important their faith is to them. Elite status doesn’t make you get rid of Roe vs. Wade.

    What the majority of Catholics want is less important than what the leadership wants.

    And yeah, I’m pretty sure about my analysis of what the Christian right wants. When they get in power, they implement, it isn’t theoretical, we’ve seen it in many States.

  16. marku52

    I can’t imagine making common cause with people who think that blowing up babies in Gaza is an ethical and justifiable way to usher back the Baby Jeezus.

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