I think Drumpf's understanding of tariffs is worse than you have written. He thinks it's a tax on the EXPORTER to the US to be paid to the American Government. He can't seem to get it through his thick head that our American IMPORTERS pay the tariff.
He also has no clue about how closely tied our automotive industries are with parts and materials flowing back and forth across the borders with Canada and Mexico. He really has no clue about ANYTHING!
The big win I'm sure will come is the US moving back to honouring the terms of the USMCA as written in January 2029. By then most of the infrastructure that will give Canada long term sovereignity options will be in place or under construction. Until then ignore the White House. He will be a lame duck for his last two years and there is a decent possibility of a tariff roll back before 2029. In any event Carney has put Canada in the drivers seat with lots of momentum. Canada will be considerably stronger with more options than it ever had before by 2029.
Larry, I think the strongest part of your point is the runway Canada now has.
Whatever happens with Washington over the next few years, we shouldn't spend that time waiting for America to become predictable again.
Build the ports.
Build the energy corridors.
Build the east-west connections.
Find the customers.
Sign the agreements.
Get the projects under construction.
One small technical wrinkle... CUSMA doesn't automatically reset in January 2029.
The agreement itself remains in force through 2036 unless it's extended or a country withdraws, and the review process can continue annually if the three countries don't agree on an extension.
But your larger point is exactly where my head is.
By the time the political weather changes in Washington, Canada should be standing there with a whole lot more options than we had when this started.
Then if America wants to return to a stable, rules-based trading relationship, terrific.
Another great article, Fred. Despite all the tariff pivots and seeking new partnerships, PM Carney will have to address some of the problematic issues facing us. Housing, rents, food and fuel costs, high unemployment for youth. I should also state these issues are not solely found in Canada but most other places as well.
We haven’t even imagined the huge negative impact of diesel prices in Canada and elsewhere that will significantly add to the costs of myriad commodities.
For that we can thank our erstwhile friends south of the border and their continuing misadventures.
Millions of Canadians are making individual choices every single day to avoid purchasing U.S. products. No policy or pressure is going to change that. FAFO MAGAmuriKKKa 🖕
C_Train, that's the part I think Washington badly underestimated.
Governments can change tariffs with the stroke of a pen.
They can't change millions of shopping habits nearly as easily.
Once somebody starts checking the label, finding a Canadian alternative and discovering it's just as good... maybe better... you've changed more than one purchase.
You've changed a habit.
And even if relations improve tomorrow, I don't think every Canadian automatically goes back to shopping the way they did before all this started.
That's the part of a trade war you won't find on a tariff schedule...
**You can lose a customer long after you remove the tariff.**
I think Drumpf's understanding of tariffs is worse than you have written. He thinks it's a tax on the EXPORTER to the US to be paid to the American Government. He can't seem to get it through his thick head that our American IMPORTERS pay the tariff.
He also has no clue about how closely tied our automotive industries are with parts and materials flowing back and forth across the borders with Canada and Mexico. He really has no clue about ANYTHING!
Exactly, Catharine.
That’s the part I want Americans to understand above everything else...
**The American importer pays the tariff to the American government.**
After that, the cost can get shared around...
supplier, importer, retailer, consumer...
but Canada does not receive a tariff bill from Washington.
And with autos, taxing a supply chain that crosses the same borders repeatedly can mean adding costs to something your own manufacturers depend on.
That’s why I keep hammering this subject.
**Tariffs aren't a bill America sends to Canada. They're a tax America collects at its own border.**
A POLITE, FUCK OFF! 😁
with a smile 😎
nicely done, Fred!
Haha
Well said Fred, I hope Canada continues to move in new directions. I also cross my fingers for a good result in November
The big win I'm sure will come is the US moving back to honouring the terms of the USMCA as written in January 2029. By then most of the infrastructure that will give Canada long term sovereignity options will be in place or under construction. Until then ignore the White House. He will be a lame duck for his last two years and there is a decent possibility of a tariff roll back before 2029. In any event Carney has put Canada in the drivers seat with lots of momentum. Canada will be considerably stronger with more options than it ever had before by 2029.
Larry, I think the strongest part of your point is the runway Canada now has.
Whatever happens with Washington over the next few years, we shouldn't spend that time waiting for America to become predictable again.
Build the ports.
Build the energy corridors.
Build the east-west connections.
Find the customers.
Sign the agreements.
Get the projects under construction.
One small technical wrinkle... CUSMA doesn't automatically reset in January 2029.
The agreement itself remains in force through 2036 unless it's extended or a country withdraws, and the review process can continue annually if the three countries don't agree on an extension.
But your larger point is exactly where my head is.
By the time the political weather changes in Washington, Canada should be standing there with a whole lot more options than we had when this started.
Then if America wants to return to a stable, rules-based trading relationship, terrific.
We can meet them as a partner.
**Not as a country with nowhere else to go.**
Another great article, Fred. Despite all the tariff pivots and seeking new partnerships, PM Carney will have to address some of the problematic issues facing us. Housing, rents, food and fuel costs, high unemployment for youth. I should also state these issues are not solely found in Canada but most other places as well.
We haven’t even imagined the huge negative impact of diesel prices in Canada and elsewhere that will significantly add to the costs of myriad commodities.
For that we can thank our erstwhile friends south of the border and their continuing misadventures.
Scott, I agree... and I think that distinction is important.
Building new trade relationships and reducing our dependence on the U.S. doesn't make housing cheaper tomorrow morning.
It doesn't lower somebody's rent, fix youth unemployment or make the grocery bill hurt any less.
Carney still has to deliver at home. Full stop.
And diesel is one I've been watching closely because it doesn't stay at the gas station.
It gets baked into farming, trucking, construction, manufacturing and eventually the price of damn near everything that has to move.
I wouldn't put every bit of that increase at Washington's feet...
global oil markets and geopolitical events have plenty to say about it too...
but U.S. policy can certainly add more uncertainty and cost to an already ugly situation.
That's why I keep coming back to the same standard...
Diversification is the strategy.
**Results are the test.**
I'm encouraged by where Canada is heading.
But nobody gets a free ride because I like the direction.
All excellent points, Fred. Thank you.
Millions of Canadians are making individual choices every single day to avoid purchasing U.S. products. No policy or pressure is going to change that. FAFO MAGAmuriKKKa 🖕
C_Train, that's the part I think Washington badly underestimated.
Governments can change tariffs with the stroke of a pen.
They can't change millions of shopping habits nearly as easily.
Once somebody starts checking the label, finding a Canadian alternative and discovering it's just as good... maybe better... you've changed more than one purchase.
You've changed a habit.
And even if relations improve tomorrow, I don't think every Canadian automatically goes back to shopping the way they did before all this started.
That's the part of a trade war you won't find on a tariff schedule...
**You can lose a customer long after you remove the tariff.**
You are correct, individuals have leverage & we should use it to our own advantage! Canada Strong!
🇨🇦✊
Well done Fred! Thanks for always keeping us apprised on the state of the states versus our Canadian markets. We shall overcome! Canada Strong & Free!
Thank you, Patsy!
There’s plenty we still have to get right, but I’m more optimistic about Canada’s position today than I was when this mess started.
We got a hell of a wake-up call.
Now the trick is making sure we never hit the snooze button again. 😂
Canada Strong & Free! ❤️