Summary
Trump signed an executive order imposing 25% tariffs on Canadian and Mexican imports—excluding Canadian energy at 10%—plus additional duties on Chinese products.
In response, Prime Minister Justin Trudeau announced a 25% duty on $155 billion in U.S. goods, beginning with $30 billion in tariffs Tuesday.
Mexican President Claudia Sheinbaum indicated reciprocal tariffs, rejecting claims that Mexico tolerates criminal groups trafficking fentanyl and insisting on respect for sovereignty.
Experts warn these tit-for-tat measures could drive up costs, disrupt supply chains, and mirror the previous U.S.-China trade war, possibly harming security.
As tariffs hurt the importing country, not the exporting country I think that it’s odd that Canada would punish their own citizens in retaliation.
They should have added a 25% export tax on energy seeing as Trump clearly didn’t want to pay more for his imported energy.
If you heard the speech the fact that they are giving time for the full set of Tariffs mean we have a small set (booze) we are willing to cut right away. Ie. Jack Daniels is no longer on store shelves. Orange juice is no longer on store shelves.
The extra time is for Canadian companies to find alternative (non-American) suppliers. They may be more to import due to distance/time but less impact on tariffs and potentially still more cost at the end for consumers but at the same time not American goods.
The intention is to ween us off your teat.
I don’t think Americans realize that long term this is not good for you. Once new trade routes come in, it’s going to be hard for you to get those partnerships back on account of you showing yourselves as a horrible business partner.
Canada will hurt in the short term but we will be stronger in the long run.
The only thing I’m worried about now is a full on American invasion and I fear that’s on the table.
The US President imposes taxes on Canadian imports that US citizens will have to pay. In response, the Canadian Prime Minister retaliates with taxes on US imports that Canadians will have to pay.
Basically, both just want to raise taxes.
They very obviously hurt both so long as there’s any demand elasticity and especially when there are alternatives sources for the products .
Explain how demand elasticity affects both countries please. I expect Trump uses these tariffs as a scare tactic for countries who depend greatly on exports to America, but i don’t know how elasticity of demand plays in.
Tariffs will drive the prices upward but consumers will still be compelled to make those purchases for a time, which is to say that they will just bite the cost because the alternative is less desirable. This demonstrates a lack of equilibrium between price and demand. In a non-elastic scenario, the rise in price would directly correlate to a decrease in demand.
So, is Canada going to import what it gets from the US (it’s only geographic neighbour) from elsewhere?
If the answer is “no, not without at least a 26% jump in cost” then the tariff is a bad response.
Would you rather us bend over and take it?
Fuck America. You asked for this. Reap what you sowed. Unlike your trifling ass back home we are unified here. You have made us stronger as a nation.
Bend over and take what? Trumps declarations have no effect on Canada.
Canadians pay Canadian tariffs on US imports. Trump is fucking America already with his tariffs. Canada mirroring them gives Trump what he wants.
I’ll explain it for you. When the US government imposes a 25% tariff on Canadian goods, the cost to US consumers increases by 25%. Now, every other global supplier that was 1% - 24% more expensive gets the business that used to be Canadian revenue. So, Canadians lose US customers. We both lose.
If you want further reasoning on why this is bullshit, the “small government, lower your taxes” Republican government are the ones collecting the 25% tariff that is paid. It is a additional tax with no promise of social support. Do you think Trump will use that additional revenue to issue small business grants or to subsidize the businesses of the oligarchs in his administration?
Now, when people say stupid things like, “Canada imposing tariffs only hurts Canadians” it is very obviously 100% reciprocal. The retaliatory tariffs are meant to put the pressure on US exporters to put the pressure on their government to end the trade war. A few key points on the Canadian tariffs:
Finally, to address the argument that the tariffs will strengthen the US manufacturing economy, I will refer back to my point about the government using the tariff income to subsidize American businesses. Small businesses are not (and frankly cannot) replace entire Canadian (and Mexican) industries within a couple of months. That money is not going back into the economy. The US oligarchy, the massive monopolistic industry giants, are the only ones that are going to spring up and, chiefly, profit off this whole debacle. And that’s by design.
Please find an adult and ask them to explain general economics to you and in the meantime look up the impact of tariffs and trade wars.
Canada doing nothing gives Trump what he wants. Fighting back with our own Tariffs is the next step. Make no mistake this is a war. Not all war is fought with guns.