Ontario Premier on Tariffs

[Leap1]

@gcr2016

So, one of the arguments against tariffs is that it will cause massive layoffs here.

Fixed that because the common reporter does not know econ and therefor no one can see the mass layoffs coming.

[DrBob2]

@MataroPete

Without it, Canadian farmers could struggle against cheaper imports from the U.S. or Europe.

Who knew? It seems cheaper imports hurt local producers.

DB2

[steve203]

@DrBob2

And, FWIW, the US has more leverage (as we witnessed here).

I suspect that is his view: he can put on a big “strong leader” show for his base, talking smack about counterparties, then bend them over and boink them in the rear, and they will take it, because they are so desperate to have access to the US market.

RS thought it was such hot stuff it could roger it’s customers, and they would keep buying. They were wrong. The pump seal company thought it was such hot stuff they could charge more than the competition, deliver worse quality, with longer delivery, than the competition, and people would keep buying. They were wrong.

In spite of the “USA Number 1” chant at rallies, people may get tired of the nonsense, and take their business elsewhere. It won’t happen overnight. It took RS 25 years to run itself into the ground. But once people write off the US, they won’t come back. Ask the UK.

Steve

[syke6]

@gcr2016

So, one of the arguments against tariffs is that it will raise consumer prices here. With the tariffs that the Canadian government have, why aren’t the Canadian people upset with the higher costs they are paying?

Because they aren’t paying higher prices. The import tariffs on US dairy are actually very low.

Those high tariff rates only apply after imports quotas are reached. But the quotas are high enough that limits are almost never reached, hence the tariffs never kick in.

Edit: “quotas” not “quotes”

[dividends20]

@gcr2016

why aren’t the Canadian people upset with the higher costs they are paying?

Canadians are upset at run away inflation.

[syke6]

Inflation rate in Canada: 1.9%

Canada Inflation Rate

[buynholdisdead]

@captainccs

There are two kinds of people, natural (flesh and bones) people and statutory people that might not vote but have a voice in elections. This was ratified by the SCOTUS.

Business did vote, if indirectly.

LOL you really twisted yourself into a pretzel to get to that point.

[buynholdisdead]

This has pulled the Canadian people together and they see this as being at war with the United States now. They feel they have been stabbed in the back by a trusted friend and they will not give up. Thanks to Trump the liberal party, which was going to lose the next election, has now been seeing higher poll numbers. Thank you Trump. You saved Canada from going to the far right.

[Goofyhoofy]

@dividends20

Canadian tariffs that will likely topple or come down.

• Dairy: Canada imposes tariffs as high as 270% on milk, 245% on cheese, and 298% on butter to protect its domestic dairy industry. These rates apply to imports exceeding specific quotas.
• Poultry and Eggs: Tariffs include 238% on chicken and 163% on eggs, also part of supply management to limit foreign competition.
• Lumber: Softwood lumber from the U.S. has faced tariffs averaging around 14.5%, though this varies with market conditions and ongoing trade disputes.
• Wheat and Barley: Tariffs can reach 94% for wheat and 57% for barley seed outside quota limits.

In other words, the numbers that Trump himself agreed to in 2018 with the USMCA, which he touted as “truly historic”, “the most important trade deal ever”, and “the biggest trade deal in United States history”, were awesome at the time, but are terrible now, even though nothing about them has changed.

Donald Trump says new trade deal is 'most important ever'

Do you ever get tired of the whiplash?

[buynholdisdead]

@Goofyhoofy

Do you ever get tired of the whiplash?

They live for it. It’s called chaos and it is the only thing that makes them feel alive.

[gcr2016]

@MataroPete

Would Canadians support removing these tariffs?

Probably not—polls consistently show that most Canadians support supply management, even if they complain about high grocery prices. Unless public frustration grows significantly, the high tariffs are unlikely to change anytime soon.

Pete

Thanks for the detailed response. I’m guessing you have described the Canadian stance on tariffs pretty well since no one here has challenged your explanations. But it still hasn’t been made clear to me why what DT is wanting to do is that much different than what the Canadians have done for a long time. I only wish he wouldn’t waiver back and forth, but that is his style.

[buynholdisdead]

@gcr2016

But it still hasn’t been made clear to me why what DT is wanting to do is that much different than what the Canadians have done for a long time. I only wish he wouldn’t waiver back and forth, but that is his style.

This is usually done behind closed doors but Trump wants an audience and some people want to see the sausage being made but most people do not want to see how the sausage is made. He would have probably had more support if he did it behind the scenes.

[Leap1]

@dividends20

Canadians are upset at run away inflation.

@gcr2016

But it still hasn’t been made clear to me why what DT is wanting to do is that much different than what the Canadians have done for a long time. I only wish he wouldn’t waiver back and forth, but that is his style.

US corporations are going to build fewer factories going forward if the corporate tax rate is reduced to 15%.

In light of the coming tax cut, why bother with tariffs? There is no point to it. We are deindustrializing under Trump.

The tariffs will speed up the deindustrialization.

adding

It is amazing to me that people have all the answers from a lunatic.

[steve203]

@buynholdisdead

This is usually done behind closed doors but Trump wants an audience

He is absolutely about the “show”: being a big, strong, man, and showing those foreigners who is boss. He thinks he can get away with it, because, he thinks, the counterparties need access to the US, enough to put up with an infinite amount of his nonsense. It occurs to me that he isn’t use to push-back, and is easily triggered into a temper tantrum.

Steve

[jerryab2]

@Goofyhoofy

Do you ever get tired of the whiplash?

It keeps his lawyers suing over and over again for–guess what?–WHIPLASH !!!

[dividends20]

@Leap1

US corporations are going to build fewer factories going forward if the corporate tax rate is reduced to 15%

Apple deploying 500B, TSMC deploying 800B, Tesla.doubling production. Game on.

[btresist]

@dividends20

They will.come down one way or the other. It is in Canada’s interest to bring them down voluntarily.

Canada just imposed $30B in new tariffs, bringing the Canadian response to trump to total $60B in tariffs against US goods. Canada has in reserve another $100B in tariffs for further responses as needed. Canada hits U.S. with tariffs on $29.8B worth of goods after Trump slaps levy on metals | CBC News

trumps silly 51st state rhetoric has made this trade war an existential issue for Canadians. I suspect they will be willing to take a lot more pain than Americans, since most of us find this whole issue to be nonsensical.

I think I will go buy something Canadian today. I know a lot of people who are planning Canada vacations as a show of economic support.

[buynholdisdead]

@btresist

I think I will go buy something Canadian today. I know a lot of people who are planning Canada vacations as a show of economic support.

Buy a Canadian Maple leaf flag and Fly it over your house. That should drive them crazy.

[Goofyhoofy]

@dividends20

Apple deploying 500B, TSMC deploying 800B, Tesla.doubling production. Game on.

Virtually all of the Apple spend was already in the pipeline. The announcement is good PR, but it’s not “new”.

I haven’t seen the TSMC figure of $800B, (neither has google), all news reports I can find say $100B, again, in the works in 2024.

Tesla will double production as their sales are cratering? Wow, what a way to go bankrupt, fast at first, then all at once.

[Leap1]

@dividends20

Apple deploying 500B, TSMC deploying 800B, Tesla.doubling production. Game on.

The first two are spending for a decade. Dropping plans is a US corporate national past time.