Some US Tariff-Relief Deals Are Worthless, Canada’s Carney Tells CBC

“Get it past Congress”….heh.

It’s crazy that the cons are out full force with anti liberal ads right now just complaining. No answers to their problems, no solutions just “omg prices are higher”. If I did this in a business I’d be fired the next day.

Nah, having lived through the Liberals to Conservative to Liberals federal government transition from the mid 2000s to mid 2010s, if PP were prime minister Alberta “would be getting a fair deal from Ottawa” starting the day he was sworn in regardless of what he actually did or didn’t do for Alberta. It’s all about conservatives in power here, the provincial government can’t start trashing another conservative government. That just wouldn’t work. Notice that it’s all smiles (or just ignored completely) when talking about Saskatchewan or Ontario here in Alberta, but the focus is on BC because it’s the NDP running the show.

That would have been funny for one reason, PP would have had to then take yet another elected MPs seat because he would have lost his again.

Yep - I read somewhere or maybe heard a senator talk about it - Tariffs on bananas. It was something about how USA did not have the climate to grow bananas, so tariffing them is just pure needless economic punishment.

Which is why Canadas retaliatory tariffs were great and effective. It was in stuff we had equivalents to, mostly luxury goods, not staples and that targeted republican states.

Or at the very least reasonably source from another allied country at a lower than tarrif price. Nah let's tarrif everything from everyone instead surely that won't hurt anyone

With as strong as the relationship used to be with Canada, was there any real difference in producing goods there vs in the US? There’s plenty of rail and highways, so lead times were low.

You can produce secondary market goods locally, if you're willing to pay enough. The tariffs have to be high enough that buying American is more attractive. Like if Korea can make a car for $15,000 and a similar American one is $20,000, you'd need tariffs around 33% on Korean automobiles (actually maybe slightly less because demand for cars will fall with the price increase) just for them to be competitive. And that assumes American cars are as good as Korean cars when you're done. Note that, as a consumer, you get hosed. Your car might be made in America now and you might have gotten a new job at the Ford plant, but you're paying 33% more for you car (but more of that money stays in America).  Something's though America just can't make - like I don't think they have economically viable potash deposits if I remember right. So tariffs on goods you can't produce is insane. The other downside is that other countries then don't like your tariffs. If you switch to domestic manufacturing of cars with heavy tariffs on Canadian cars, why would Canada keep giving you preferred access to potash when you impact their workers? And why would they buy American cars when they can buy them from Korea for much cheaper. You boost your domestic market and independence in exchange for a hit to your exports, higher consumer prices, and potentially a hit to your importa as well. Sometimes it's worth it. Sometimes it's not. It's never simple or free. If it was cheaper to manufacture them domestically, it would already be happening. That US tariffs comes at a time when they're also pissed about taxation on digital services is hilarious. The idea of globalization is that countries specialize in certain goods and services. The US is a major specialist in entertainment and the shift to streaming services has moved even more of the profits to American companies. Imagine selling a DVD of Star Wars IV in Canada. The money spent goes to pay workers at Best Buy, pay rent on a Canadian store, expansions in Canada, etc. Some goes back to the manufacturer of the DVD wherever they are, and some goes to the license holder. If you sell digital access to Star Wars IV on Apple TV, all of that profit goes to Apple and to the license holder, plus whomever maintains the Apple data centre. All of those are in America now, so none of the profits stay in your country (in fact, major companies will shift it around to a place where they get a good tax rate). So none of your money stays in Canada (except the sales tax now) the only one who benefits are the ISPs who can sell bigger plans. The US therefore racks up a huge poorly tracked trade deficit on digital services then complains about trade deficits with other countries who export physical goods. 

> if you can domestically produce the goods in question America will never be able to replace manufactured imports with domestic products unless their citizens are willing to lower their standard of living and accept decreased wages, or they can stomach paying more for everything than the rest of the world. It’s a pipe dream. Trump and his supporters are still thinking they can bring back their post-WWII economy. It will never happen. They are living in the middle of the last century. The rest of us have moved on. 🇨🇦

A very fair call and definitely something I could see that happening. A frustrating situation none the less!

I say that because I am not an economist. I am just a guy who read about tariffs and how they work - Hence my approximations. If you have some additional things you would like to throw in or sources I could read from, please let me know. I am always happen to sponge knowledge from others!

somehow 

That cost 1000 a head and had to be in person to vote

Tells you alot about the state of Conservative party leadership candidates that he passed the review...

> Didn't he pass a leadership review a month ago? Yes. And it was rigged to ensure his continuance, much to the dismay of real Canadian conservatives. Thank you Peter MacKay.

They have to go even father to the right! What could go wrong?