But while admiration for Carney within the EU is high, appetite to replicate his pushback on Trump has been markedly less so.
The U.S. products that Canada will target with new tariffs include:
Fish imports like salmon and trout: 25% tariff
Lobsters and mollusks like clams: 25% tariff
Carpets and floor coverings: 25% tariff
Appliances like stoves and air conditioners: 25% tariff
Milk, cream and cheese: 50% tariff
Perfume and other cosmetics: 50% tariff
Toilet paper and facial tissue: 50% tariff
Clothing like men’s and women’s coats: 50% tariff
Video game consoles: 50% tariff
Golf clubs and fishing rods: 50% tariff
Steel products: 50% tariff
Aluminum products: 50% tariff
Further escalating the trade fight, President Trump on Monday announced on social media that the U.S. would impose a 50% tariff on all Canadian automotive and steel imports, effective Jan. 1, 2027.
“Canada has been ripping off the United States of America for years,” he wrote on Truth Social.
It certainly will affect prices of new vehicles for sale to the American public.
Canada supplies 62% of all U.S. crude oil imports. So far neither has impacted that trade.Who is hurt more if the trade war includes oil?
90% of the Exported Oil from Canada comes to the US. 80-85% of Canada’s oil production is for export purposes. Canada however represents only about 20% of US overall Oil Consumption.
A trade war that includes Oil is not helpful to either country but the US is probably in a better bargaining position, at least at the moment. Canadian’s carry the largest personal debt burden of the wealthiest nations. Part of the question is how much pain the citizenship is willing to endure in either country under an expansive trade war.
US refineries were designed to process heavy, sour Venezuelan crude. Alberta provides heavy crude…
GoogleAI:
Yes, Alberta provides massive amounts of heavy crude oil from its vast oil sands. [1]
Alberta’s Heavy Crude
Bitumen Source: Alberta produces thick oil called bitumen. This oil is like molasses or sticky sludge. [1, 2, 3]
Western Canadian Select: Alberta mixes bitumen with lighter liquids. This creates a heavy, sour blend known as The Hub Western Canadian Select (WCS). [1, 2]
US Supply: Canada sends most of this heavy oil to the United States. It feeds specialized refineries that were built to process heavy crude. [1, 2, 3]
There is a certain asymmetry given the sizes of the two economies. For example…
Canadian spirit makers rely more heavily on exports to the US than American makers do on exports to Canada. Before the bans, Canada accounted for about 10% of US spirits exports. But 93% of all of Canada’s spirits exports by value went to the US, according to Spirits Canada.
“Canadian households now carry the largest debt burden among G7 nations. Much of it is driven by mortgage debt, which analysts argue helps increase net worth, while the rest is consumer credit and other loans.”
Personal household debt as a percentage of GDP seems like a wonky measure.
Probably a more relevant measure, but sentiment matters. From the linked BBC article -
“The recent Angus Reid survey indicates that seven-in-10 Canadians describe their current household finances as “good” or “very good”, while the 27% who say they are in poor financial shape are also more pessimistic overall about their financial future.”
7 out of 10 are feeling good or very good? Holy smokes, that’s a lot of people! Granted, that article is from June, maybe things have changed since then?
Nominal debt levels per household seems rather worthless, if it not in the context of some measure of income or revenue.
The data is what it is. Canadian’s feelings about is immaterial and may be simply that they are more accustomed to it. Debt to Income in Canada is at 180% on average compared to the US at around 100%.
Besides, the conversation wasn’t about citizens feel about their debt, it was about the precarious nature of it in the US vs Canada. I gave you the data and you can disregard it or accept it. Barring some financial gymnastics, a trade war that expands would seem to put Canadians at greater financial risk than Americans.
I agree, but measuring it against GDP is weird. We might as well measure household debt against the market cap of the S&P.
Precariousness is in the eye of the beholder. Feelings matter. In the context of bargaining trade war stuff, Canadians are not likely to pressure their politicians to give in to US demands. Most of them want this trade war. Most of them seem willing to suffer short-term sacrifices for longer term economic independence.
Canada has learned that it can’t depend on the US…for anything. They’re adjusting trade policies and investing in infrastructure to open up their market. This is a long term project that has the support of most Canadians. Financial risk means little to them.
What are we to glean from this comparison? Is Norway in economic trouble because their citizens owe a lot of money as compared to their income? How about the Netherlands, New Zealand, Luxembourg?
I get that conditions may worsen for the average Canadian because of this trade war. And then what? They’ll cave to US demands? Not very likely.
I wouldn’t disagree with that position and hopefully this all gets resolved ins short order.
We’ll see. They haven’t seen real financial pain yet, neither country has at this point. Canadians tend to be somewhat more malleable, going along to get along. It’s all rather speculative.
Hamilton steel plant to lay off hundreds of workers as U.S. tariffs prompt ‘survival’ move https://www.cbc.ca/news/canada/hamilton/stelco-tariffs-trump-9.7361216 Stelco Holdings Inc. said on Monday that it plans to idle part of its Hamilton plant in order to “ensure the survival” of the company, as U.S. tariffs squeeze its sales. Stelco said the decision will impact up to 500 employees.
In a memo obtained by CBC News on Monday, the company said it will indefinitely idle its cold-rolled and coated operations at its Hamilton Works plant, with operations set to begin winding down on Oct. 9…
The company said this will not impact its ability to supply hot-rolled steel products…
"Stelco’s market for cold-rolled and galvanized products has contracted significantly, while import penetration [from China] for these products remains at heightened levels," Fafard said in the memo.
