4 Comments

It's all very erratic. However, I heard Trump give a justification for tarrif increases and that is in the prior agreements Canada was on subsidies and now he want tarrifs to be 'reciprocal' ie charge Canada what they charge US.

Expand full comment

Trump is mad about the trade deal that he negotiated himself? Since he just throwing random numbers into the tariff levels, “reciprocal tariffs” are just how much Trump dislikes the country. Canada gets high tariffs since he wants to annex us.

Expand full comment

Yes, he's just making up excuses to get his tax-via-tariff fiscal policy in place. Though I've read that many, many countries have twenty percent tariffs against U.S. goods, and if so, it at least makes sense to raise ours to that level, if tariffs are our goal.

But I can't imagine literal annexation even if Alberta and a cascade of others want to leave Canada. Get rid of your dictator and see if it settles down with Polievre. But that too misses the model *we* are aiming for. The desired model, Mr. Romanchuck, the dictator supports is a world economy with international corporations and organizations as sovereigns. The tariff model is one of democratic nation states as sovereigns. As such, Canada also, then, should erect trade barriers and make up for it by cutting other taxes and taking control of the B.O.C. lowering interest rates to zero, allowing you to increase domestic government spending as one more offset to The Policy.

This is the former policy of the Democratic Party of the United States, Trump's old party, so it feels strange to hear Democrats such as yourself talking as if it's totally an out of this world idea to you, unless you are a bit younger than I and simply have no memory of Past Things?

Expand full comment

Err, I’m not a Democrat, I’m an extremely pissed off Canadian. I used to be a Red Tory (Canadian equivalent to a country club Republican, but more populist), but I’m in the “burn MAGA to the ground” faction (which is about 80% of Canadians right now).

You might be unable to imagine annexation, but trust me, it is extremely easy for Canadians to imagine annexation. All you need to imagine it is to have any familiarity with pre-1945 history. Trump has killed NATO, and that is what the world is reverting to.

Feel free to think that tariffs are great. Canada and the US negotiated a managed trade system since 1987, and the major auto makers have built all their infrastructure around those treaty conditions. Breaking those treaties destroys the local auto industry, and that is not something that is easily cushioned. You cannot expect industrial plants to magically adapt to completely changed trade conditions on one month’s notice, even if the government helps out.

Expand full comment