‘No room left for Mexico or Canada’ to make a deal, Trump says

U.S. President Donald Trump says his long-threatened trade war is going ahead with tariffs on Canadian goods set to take effect just after midnight and there’s nothing Canada can do to stop them.

Speaking to reporters at the White House, Trump said the United States has been “a laughingstock for years and years” and he needs to take trade action against its continental neighbours.

He said Canada has allowed fentanyl to flood into the U.S. despite data that shows the claim is false.

“Very importantly, tomorrow, tariffs, 25 per cent on Canada and 25 per cent on Mexico, and that will start. So, they’re gonna have to have a tariff,” Trump said.

  • Pixel@lemmy.ca
    14·
    15 hours ago

    Canadian tariffs are targeted in a number of ways. One of the ways is targeting American goods that have Canadian alternatives. So the goal is to make American products less attractive by making them more expensive, damaging the US economy while bolstering our own.

    I feel like it’s often missed that it isn’t a binary Buy US/Buy Canada dilemma. Most goods have substitutes - there are other countries that can produce most consumer goods. It’s only when you start getting into high-value-added goods like turbines, flash memory, missiles and planes that there’s difficulties in import substitution. A 25% retaliatory tariff doesn’t mean your canned tomatoes are definitely going up by 25%, but you’ll likely start seeing Mexican, Peruvian, etc. canned tomatoes on Canadian shelves that weren’t there before.

    And while patriotism is great and all, buying goods from other countries that we don’t have strong established trading ties with is a good way to make the case for closer bilateral cooperation and even future free trade agreements that exceed most-favoured nation benefits conferred by the WTO. When countries start building export-driven industries that give dignity and economic self-sufficiency for their citizens, that’s a future tiger worthy of negotiating a free trade agreement with.

    • Grimpen@lemmy.ca
      5·
      12 hours ago

      One beneficial side effect of the informal US products boycott in grocery stores is that many stores have already started trying to source other products. It’s tough to change on short notice, and businesses often aren’t very…future focused. The boycott has already started to push grocery stores in my area. There were Moroccan oranges advertised for sale last week. That means there’s already a Moroccan exporter/importer already set up to clear customs, who is probably already increasing capacity.

      The other thing to consider is where in the production chain the tariff is applied. Canada is unlikely to tariff the inputs into Canadian producers, just finished products with Canadian or friendly alternatives.