Hopefully an impetus for broader trade deal between the 2 countries. US more likely to take trade from China while its allies still cling to propaganda hatred in support of the empire.
It’s incredible that the US convinced its allies to put high tariffs on China while the US itself only has a 10% tariff.
current general tariffs on China are 30% = 10% + 20% fentanyl emergency. Somehow 35% vs “it’s friend”, Canada. US has same tariffs on EVs as Canada, which Trudeau imposed the day after being ordered by Sulivan to do so. Allowing some protective but revenue generating tariff rate, somewhere under 40% for EVs, would be a good compromise to open China to Canadian resource markets. Canada is one of the largest (8th) auto markets in the world. Failure to get any deals, or public talks, with companies and countries is innaction that doesn’t help get US to submit to stable historical alliance.
It’s worth noting that EV tariffs make some sense for the US because they’re protecting domestic industry, they make zero sense for Canada which does not have its own domestic car industry. The rational thing for Canada would’ve been to invite Chinese companies like BYD to do manufacturing here.
make zero sense for Canada which does not have its own domestic car industry.
Canada produces almost as much vehicles as it consumes. They are mostly foreign owned companies, but it’s a sizeable employment base in Ontario and Quebec.
In an unjustified US trade war, threats of nationalizing plants is reasonable, and then selling them to Chinese makers with employment guarantees a win for entire sector and country. But a reasonable tariff/quota level as part of greater Chinese market access/long term supply contracts deal would be the balanced strategy.
The key is that Canada can produce vehicles from both American and Chinese companies. And if we did nationalize existing plants I don’t see why we’d sell them to China. Just keep them under public ownership.
