USA: 25% tariffs on Mexico and Canada on Feb. 1

[Economy 53,090]

I actually get annoyed @Morphine Prince just because I feel when it comes to Trade Trump is unfairly putting a lot of emphasis on Canada and I dont get why. The numbers do not support what hes saying

 

#1 . The trade deficit the US has with Canada is a lot smaller than he says. In fact Canadas is a lot lower than other major trading partners like China and Mexico. The biggest reason for discrepancy is that most pro tarrif Republicans completely ignore the large trade surplus the US has with Canada in services (banking, digital entertainment, trading services etc) and only look at physical goods. That isnt really fair because its an incomplete picture. Services also result in money flows and support jobs so they need to be included in the total for an accurate full picture. When everything is taken into account the US trade deficit with Canada is only $40B or a tiny 4% of the total $1T trade that is done, vs Hundreds of Billions for Mexico and China

 

#2 The nature of the trade between Canada and the US is different from Mexico and China in the rehtoric of stealing manufacturing jobs. Canada buys more manufactured goods from the US than the US buys from Canada including vehicles, machinery, tools, chemical products etc. Canada does sell some cars and car parts but to a lesser degree than the US sells to Canada so were actually a net contributer to US manufacturing, and were the only major partner to the US that is a net contributer to manufacturing

 

The small deficit that does still exist is largely due to large exports of oil, gas and other resources the US is incapable of producing enough for itself so blocking or putting tarrifs on raw materials you need only hurts your manufacturing because it will raise imput prices for complete products

 

Canada in turn also needs US imports badly because we do not have enough refineries for our oil and need your gasoline. Additionally our cold climate means we have to import most of our food the majority which comes from USA

 

So Canada-USA trade is predominantly critical things we need from eachother, not cheap manufactured goods from cheap labor kind of situation that you could easily reshore and tarrifs make 0 sense for either side. But Trump is too estupido to understand

[Chromatography 10,186]

But I thought eggs were supposed to be cheaper 

[Nite 5,913]

I'm starting to think we live in a world where a scary amount of people assume they don't need things from farms or anywhere else because they can just go to the store 

[Economy 53,090]

Just now, Nite said:

I'm starting to think we live in a world where a scary amount of people assume they don't need things from farms or anywhere else because they can just go to the store 

If tarrifs in the 1940s by USA seriously backfired and had to be cancelled, imagine now when our economies are even more interlinked than 80 years ago?

 

But ignore history i guess

[NCgaga 4,345]

On 1/21/2025 at 2:30 AM, PMM said:

"North American trade policy that could raise prices for American consumers"

Should I feel sorry for those dumb cheekers? I am not 

No need to be ignorant. Half of us didn’t vote for him. Like why are some of you so mean? 

[Morphine Prince 109,938]

36 minutes ago, NCgaga said:

No need to be ignorant. Half of us didn’t vote for him. Like why are some of you so mean? 

The fact that he actually won the popular vote this time is an indictment of this country. This in help by people who didn’t vote. 

Being mean to Americans is the least of our worries. 

Everything that happens now is exactly what people wanted and hopefully we get it.