Summary
Canada will maintain its initial $30 billion (CA$) in retaliatory tariffs despite Trump postponing 25% tariffs on many Canadian imports for a month.
A second wave of tariffs, originally planned at $125 billion (CA$), has been suspended. Ontario will still raise electricity prices for U.S. customers, and B.C. is considering tolls on U.S. trucks going to Alaska.
Trudeau expects a prolonged trade war, following a heated call with Trump.
About 62% of Canadian imports remain subject to tariffs, as Trump pushes for U.S. companies to shift production domestically.
Trump is going to threaten more tariffs again in two weeks anyway, when the market has recovered from the current dump and pump cycle, so it’s just easier to leave them.
It’s not just about what’s easy / simple, it’s also about our politicians understanding that having tariffs is actually less damaging than what Trump is doing.
More than anything, business hates uncertainty. You can invest in an uncertain future. Businesses actively prefer bad to uncertain. A world with tariffs is one where they make less money, sure, but they can factor that in. Raise their prices. Let the inflation happen. They’ll be alright in the end. But a world with the possibility of tariffs, that’s so much worse, because now they can’t respond. Either way they bet, they could lose.
That’s why Trudeau is taking this “Shit or get off the pot” stance. The most important thing is not just to remove the tariffs, but to get a guarantee that they stay gone, otherwise there will be continual economic damage, to both countries, for as long as this bullshit continues.
Of course any guarantee from Trump is nearly worthless, so the reality is that as long as America lets that idiotic narcissist remain in power, there will continue to be damage to both our economies just from the uncertainty his presence creates.
But thats not a problem we can solve.
Trump didn’t promise to keep the tarrifs lifted, only to pause them. You are correct that it’s insane to have a continual 30 day “will he won’t he” tension.
I hate that my syrup is about to get more expensive, but it’s really the right thing for Canada to do.
Yes, that’s my point. Hence why Canada responded by saying “That’s not good enough, remove the tariffs entirely and make a clear promise that they’re not coming back, or else our tariffs will continue.”
Just leave them up for the rest of his term. He’ll throw shit into every fan anyway.