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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