Tit for Tattle

Oh Good, a trade war….we’re hitting the Americans where it hurts. This usually works out well.

Here’s a counter suggestion: total, real, free trade. No tarriffs either way on Canadian or US made and manufactured goods. An open border for evrything from steel to cheese. (And yes, the dairy farmers will scream…let’em.)

Canada is not going to win a trade war with its biggest trading partner. It is a silly idea and one which only the Liberals could come up with. But we could be creative and say, unilaterally, that we are eliminating all tarrifs and other barriers to US made goods. That would swat the ball back into Trump’s court.

So far as can be seen, the biggest US gripe about Canada is transhipment of Chinese goods. We can deal with that with a value add requirement.

Trump is never going to give an inch to retaliation. He’d rather die. But a better deal for Canada and the US, now we are talking.

And, best of all, cheap cheese and wine and all manner of good things.

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6 thoughts on “Tit for Tattle

  1. Dwayne says:

    Never happen. First off those that get money from the government never want to give up their money. Second, too many Canadian manufacturers and producers cannot compete in a free market environment just due to scale. Of course consumers would gain, but we all know that consumers are the last person that the Canadian government care about.

    There does need to be some control on countries using Canada to tranship product to avoid American tariffs. It really looks bad on Canada if we allow China to use us as a go between, but then Trudeau does admire their basic dictatorship, eh?

    I would be happy just to see any Canadian government get rid of corporate welfare, but realistically you can’t do that unless other jurisdictions do the same, and I don’t see that happening any time soon.

    • Jay Currie says:

      Ah, but a man can dream.

      Trump likes to stir the pot. Hitting him with 16 billion in tariffs is simply not serious. Hitting him with a new and disruptive idea has a chance.

      As to Canadian companies not being able to compete due to scale, a weak Canadian dollar will help there. Where we had a petro dollar it was very tough. But now that we’ve decided that having a ton of money is a bad thing, the Canadian manufactuers should be fine.

      • Philip Jemielita says:

        Re your comment on Canada winning a trade war with the US – the view from MInnesota is not that Canada is in a trade war with the US but rather that the US is in a trade with all of its allies. Canada is on the majority side in this – not sure if this is the right term – “trade war”. Hard to see how to the US will gain in any way. As to the specifics of what Canada should do, Because I have no serious skin in the game save that I hope my friends and relatives in Canada prosper, my advice to Canadian politicians would be to recognize that the US is not an ally of Canada and for sure not a friend.

  2. derek says:

    For all the noise I suspect the Liberals are happy how this is turning out, at least for the moment. It gives them an excuse to redesign the Canadian economy more to their liking.

    It isn’t American arm twisting that matters. It is the Chinese. If the Liberals can’t get oil to market and help them bypass the tariffs, expect the cash that has supported BC and Ontario to dry up. Already started, and the news over the next three months won’t be Trump but how the $4.5 billion will seen to be pocket change compared to what bailing out the banks will cost.

    Sit tight. RBC is already on a cost cutting tear. In retrospect the Trans Pacific deal will be seen as a last ditch act of desperation.

  3. Fred from BC says:

    “Trump likes to stir the pot. Hitting him with 16 billion in tariffs is simply not serious.”

    It’s like they all just stepped out of a time capsule and they’re meeting Donald Trump for the very first time, isn’t it?

  4. Cytotoxic says:

    It’s not Trudeau’s fault that the US president is a protectionist idiot. As darek says, the whole world sans Russia is against him.

    The only trade policy that makes sense is total unilateral free trade. No barriers. Become the world’s dumping ground. And that means no ‘content requirements’, Sinophobic whining is to be ignored.

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