Since November, President Donald Trump has threatened to impose broad 25 per cent tariffs on Canadian goods. He’s repeatedly claimed the country has no need for Canada’s exports — cars, lumber, oil and food products in particular — because America makes “the same products on the other side of the border.”
Experts predict the ripple effects of a trade war could be crushing for both economies. Canadian and American farmers, who have long relied on a steady exchange of crops, equipment, fertilizer and other agricultural goods, are bracing for impact.
Canada is an important trading partner, both as a customer and as a supplier of crucial inputs like potassium fertilizer.
That’s OK, because rich people will be able to buy failing farms for pennies on the dollar, which is the point.
Seriously, media needs to start framing this correctly to the American people.
US - Your government just implemented a 25% tax on a whole pile of goods that you purchase, and they are going to take that money and keep it for themselves
And I bet the food industry will use it as an excuse to add a whole bunch of greedflation on top of it as well like they did during the pandemic. Especially with the current administration, they know they’ll get away with it.
Also, despite Trump saying the other countries pay tariffs, tarrifs are actually paid by the country that implements them. You, the American citizens, will be paying these tariffs.
Not Canada.
You.
Our country may suffer briefly while we adapt, but Canadians will just buy Canadian goods. I could actually see some prices decreasing for Canadians as the market adapts and that foreign demand decreases.
That’s wishful thinking. It won’t last though; production will go down and prices will go back up. And while the prices are down the producers suffer. And when production goes down there’s less money in the economy and we call that a recession.
Yeah fair enough. It is wishful thinking. That being said I also hope the recession leads to some deflation over time.
