Trudeau hits back at Trump by announcing massive tariffs on the United States: ‘Canada will not let this unjustified decision go unanswered’

It’d be nice if somewhere, other than Russia and China, was doing the important reverse engineering work.

<3

We know it's not all of you.

Ditto. Our only hope is for brave nations like yours to smack our leaders down.

My fear is that, the brain washed swarms will ignore the shortcomings and scapegoat something else.

The US is one of the only, if not the only country in the world where what can be done is enshrined in the constitution.

Surely the US isn't the only country that has foreign leaders assassinated?...

The Beaverton had as a headline a few weeks back along the lines of "Americans choose the most expensive way to figure out what they purchase from Canada" which I thought was appropriate.

I said it before. Stop sending aluminum and steel and aerospace and military manufacturing would suffer immensely. That is 90%+ of all good made, metals have strict import requirements and certifications, and we couldn't just make our own on a whim.

Starting off slow and ramping up sends the correct message that (a) we want to find a way to stop this garbage and (b) we can and will make things more painful for business and consumers alike if it continues long term.

Everytime Trump threatens tariffs they should out a one week export ban on literally everything to the US... That would really shock the system.

Yes make us hurt. It’s the only way.

Just like, checks notes 96 years ago!

I am starting to understand how felon tRump bankrupted casinos

Yes, tariffs increase prices in almost any case they're implemented, which is the goal. Trudeau seems to be hoping that by adding these tariffs, it will become even easier to shift consumer behavior to buy non-American made goods, which could possibly either lead Trump to reduce/remove his tariffs, or at least make Americans feel more of the economic impact of those reductions in sales, which could then push more people to go against Trump politically.

My understanding is that when the americans institute their tariffs, all canadian products become more expensive for americans and not price competitive with local american products. This results in a decrease of purchasing from Canada.

If we do nothing, then Canadians are still buying just as much american as before and there are little to no consequences for the tariffs

With tariffs on both sides, the effect is roughly "equalized" in that we are both now buying more local goods and less trade over the border

Higher import taxes (tariffs) on Canadian goods for Americans will increase the price, presumably reducing the amount of these goods that Americans will buy which hurts the Canadian producers. The only thing Canada can really do is hurt American producers in the same way, hence increase tariffs to reduce Canadian consumption of American goods and hurt American producers just as much (or preferably more). Hurting each other is a loss-loss strategy though, which explains why trade wars typically do not have winners only losers…

Capitalist companies may lose income from lost sales, but they will be raising prices to match the tariff. Probably throw an extra 5-10% on top of that for greed, because they can blame it all on the tariff.

Sort of. The economy is not as robust as consumers like to believe it is.

Say you're a manufacturer and you make Widgets, and an essential component for those is Greebels, you likely have a supply chain already set up to have those Greebels delivered to your factory. Well, if those Greebels are now subject to a 25% tariff, they become that much more expensive to import. In theory, this would cause you to look for alternative domestic suppliers of Greebels to avoid having to pay what is essentially a 25% tax just to get essential components for your otherwise domestic-made product, but there are a number of factors that might make that impossible. For example, you might be under exclusive contract for a number of years with the foreign supplier, or you might only use Greebels supplied from the foreign Gizmo Corporation in your Widgets because you based your design on using their proprietary components and you can't switch to a competitor without redesigning your product entirely or violating intellectual property laws.

Even if none of those unusual edge cases apply, you might still opt to order your Greebels from the Gizmo Corporation - perhaps they are still cheaper than a domestic alternative after calculating the price difference, especially considering the labor laws here are more strict than it in in places such as China or Bangaladesh where minimum wage laws are almost nonexistent. If that is the case, there may not be any real domestic alternative because they can't stay competitive in the global market by paying their workers a 1st world minimum wage. Finally, setting up your own factory for turning raw materials into Greebels to use in your Widgets is a prohibitively expensive venture that likely wouldn't cause you to turn a profit for many years and would still require you to source the raw materials which may not be available domestically.

The most likely/realistic outcome is having the Gizmo Corporation agree to send their product to be manufactured/assembled/stored in a factory/warehouse in another country that is not subject to the tariffs and then import it, which bypasses the tariff altogether without compromising the specific product you are used to ordering (so long as the rerouting doesn't end up costing more than the import tariff)

or

Your company will eat the cost of the import and raise the price of Widgets by 25% to compensate for the increased cost per unit.

There will probably be a tiny dip in the exporting company profits at a result of tariffs, but they're not going to have a significant enough drop in revenue to cause any kind of panic.