President Trump has stated the the US will apply 25% tariffs on both Canada and Mexico starting this Saturday. This is a punitive action based in the levels of drugs and people those countries allow to pass into the US illegally.
Will Canada and Mexico make adjustments or be stubborn and allow these tariffs to destroy their respective economies?
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@carpediem Or for shooting yourself in the foot. You state further down that within 30 days the Canadian economy will show signs of collapse. What sort of impact do you imagine this sort of economic disruption might have on the levels of drugs and people Canada is supposedly allowing to cross the border? 🤔
@SunshineGirl You need to open the curtains and let some sun into your life. The Canadian economy is going to suffer because of bad border policy. Watch it happen. Self inflicted.
@SunshineGirl Let’s start with impact on the Canadian dollar. Take a look at it on Monday. Then move to inflationary pressures the Canadian government will cause by pumping cash into the market to prop up the economy.
Canada needs to change its border policy or risk serious harm to its economy. It’s that simple.
@carpediem Actually, I think a glut of oil and minerals may have quite a deflationary impact in the short term. Would be good for Canada's trading partners in Europe too.
But my real point is that economic disruption invariably leads to increased migration. If the Canadian government is destitute, there will be no funds or incentive to do anything about it. An unintended consequence. Which is why it is generally not a good idea to use tariffs for non-economic purposes.
@carpediem We shall see. Last night, when asked what Canada could do to avoid the tariff, Trump replied "Nothing, America needs the revenue". It seems that he is getting confused.
@SunshineGirl Says who? Maybe you need to read "The Art of the Deal". A skillful negotiator doesn't go around telling his opposition what he's about to do. That would be like playing poker and showing everyone your hand. Tariffs are a strong tool to accomplish many things ranging from changing the behavior of an entire nation, to opening up markets. Perhaps you're unaware many countries impose tariffs on our goods.
Mexico and Canada backed down because they understood they are no posture to have a trade war with the US. Now, further trade negotiations will happen to even out the trade imbalances with both Mexico and Canada. Is it tough? Yes it is. And some of you lefties just can't handle a rough and tumble fighter like Trump.
@carpediem A skilled negotiator acknowledges what the other side is trying to achieve and clearly sets out his demands. Trump made general demands of Canada and Mexico to halt flows of migrants and drugs without detailing specific conditions. At one point he forgot tariffs were being used as a negotiating tool and insisted he would impose them on Canada regardless because 'America needs the money". A lot of bluster and noise which achieved little beyond placing Trump centre stage.
Mexico and Canada have not "backed down". They were not the ones who threatened to illegally break an international treaty. The only person who has backed down is Trump from his own confected conflict.
@SunshineGirl LOL... girl, you are lost. Canada and Mexico are doing exactly what Trump wants. So sorry things are going well for the US. I'm sure it bothers you.