Canada-US Trade Relations

[Altair]

So the US has imposed tariffs on Canadian steel and aluminum,  canada hitting back with dollar for dollar tariffs effective July 1st.

Can't see this ending well.

http://nationalpost.com/news/economy/newsalert-u-s-tariffs-on-steel-aluminum-coming-at-midnight-says-ross/wcm/d9cb84ae-4161-4465-ba43-88f916b91028

Commerce Secretary Wilbur Ross announced Thursday that the United States will end the temporary exemption on Canadian, Mexican and European Union steel and aluminum as of midnight, as scheduled.

That means that President Donald Trump will be facing a group of leaders who will likely have taken retaliatory action against the United States when he makes his closely watched Canadian debut at the G7 next week in Quebec.

Prior to Ross’s announcement, a senior Canadian official, speaking on condition of anonymity citing the sensitivity of the situation, confirmed Canada has prepared a list of U.S. products that might face retaliatory tariffs, but declined to give further details.

The E.U. said Thursday it would impose duties “on a number of imports from the United States,” referring to a 10-page list of targets for retaliation it published in March, which included Kentucky bourbon and Harley-Davidson motorcycles. European leaders also vowed to proceed with a complaint to the World Trade Organization.

A trade war between allies. Just what was needed.

 

[CBH99]

Legitimate question - albeit it might sound silly.

The US seems pretty intent on disrupting the status quo, even amongst it's allies.  Whether Trump is targeting & disrupting relations with foreign countries that aren't particularly friendly, or disrupting trading relationships with it's allies - he's making waves even amongst friends.


My question is this...

Although the wording of the news regarding this can sound scary, can we not simply increase our exports elsewhere?  China & India are the first to come to mind, can we not simply increase our exports to countries like those & become less dependent on the US for trade in certain areas?

 

[brihard]

A week before Trump comes up here for G7. Lovely.

 

[Altair]

Legitimate question - albeit it might sound silly.

The US seems pretty intent on disrupting the status quo, even amongst it's allies.  Whether Trump is targeting & disrupting relations with foreign countries that aren't particularly friendly, or disrupting trading relationships with it's allies - he's making waves even amongst friends.


My question is this...

Although the wording of the news regarding this can sound scary, can we not simply increase our exports elsewhere?  China & India are the first to come to mind, can we not simply increase our exports to countries like those & become less dependent on the US for trade in certain areas?

there is a global oversupply of steel as there is. There is no garantee that India would want more steel. China is a steel exporter,  so they definitely do not.

And in the case of India,  if their steel needs are met at current prices,  the only way they take more is at reduced prices. Not to mention the EU,  Canada,  China,  will all be looking to dump their excess steel that they cannot sell in the states anymore.

 

[GAP]

The whole exercise is a pressure tactic.....his attitude is we should beg on bended knee for consideration....let it play out. Retaliate by hitting imports from ridings that hurt the republicans

 

[PPCLI Guy]

You have to punch a bully in the nose....

 

[jollyjacktar]

You have to punch a bully in the nose....

A hard kick to the balls or knee is better.

 

[tomahawk6]

I think this is more media spin than reality.Put up a border wall to keep those pesky americans out,wait you're americans too. ;DCall them illegal immigrants. :rofl:

 

[FJAG]

The whole exercise is a pressure tactic.....his attitude is we should beg on bended knee for consideration....let it play out. Retaliate by hitting imports from ridings that hurt the republicans

That, in fact, is what we aim to do but not just Republicans in general; we're hitting areas where Trump supporting Republicans can be effected:

http://www.cbc.ca/news/politics/steel-tariff-maple-syrup-toilet-paper-1.4686833

It's interesting to note that many congressional Republicans are getting more and more vocal on this issue.

:cheers:

 

[Journeyman]

I think this is more media spin than reality.

  ???  Which part of the countervailing tariffs do you not believe is real?

 

[Colin Parkinson]

Prior to the 1812 war, the border States opposed going to war with their best customer. Considering that wars have been the "defining moments" for Canada, perhaps a trade war might be good for us in the long run?

 

[Cloud Cover]

There’s no way we are going to impose tariff on goods we cannot replace ourselves. I’m not sure it’s the same with them.
I can tell you Crown Royal made in Canada is preferred to the US distilled version of the same product. And they prefer Mexican Tequila .  Hit them where it it hurts- ther bar, the patio and the bed room and the bath room( Block US access to Porn Hub, which is proudly Canadian).
Restart our strategic oil reserve and buy 4. 5 billion worth of oil to fill it with.  Keep filling it.
Recall Rachel Adams. Stuff like that!

 

[tomahawk6]

Wasn't there a trade argument about lumber ?There are those against these tarifs.I can see them used if countries put them on US goods but not trade partners.The President may be getting bad advice or else its some kind of payback.

 

[Cloud Cover]

I don't know what his game is, but the price of Canadian aluminum just went up 10 percent in the US, and it's still cheaper than their own domestic.  It sounds like our steel will be more problematic. This doesn't make any sense. If he wants to have a populist impact in the US about foreign minerals and mining, then start with middle Easter oil, anything from Turkey and Brazil. Even we can't compete with Brazil with all the subsidies.

 

[tomahawk6]

I would be surprised if the US and Canada/Mexico dont come to an agreement before the November election.

 

[FJAG]

Let's hope Trump doesn't find out that Samantha Bee is/was Canadian.  ;D

:cheers:

 

[daftandbarmy]

Let's hope Trump doesn't find out that Samantha Bee is/was Canadian.  ;D

:cheers:

... or that we started the whole tariff thing, with the National Policy:


The term National Policy originally referred to a proposed raise in tariffs by the Macdonald-led Conservatives ("Tories") during the 1878 election campaign. Over time the term became associated with the entire Tory platform for developing the economy, especially increased immigration to Western Canada, and the development of the Canadian Pacific Railway's transcontinental line.[2][3]

https://en.wikipedia.org/wiki/National_Policy

 

[George Wallace]

I don't know what his game is, but the price of Canadian aluminum just went up 10 percent in the US, and it's still cheaper than their own domestic.  It sounds like our steel will be more problematic. This doesn't make any sense. If he wants to have a populist impact in the US about foreign minerals and mining, then start with middle Easter oil, anything from Turkey and Brazil. Even we can't compete with Brazil with all the subsidies.

I seriously think that the businessman in him got fed up with Trudeau and Freeland demanding non-Trade related clauses to be added to the renewed NAFTA agreement.  He likely sees no reason to bicker over how to fill quotas of female workers within companies, aboriginal Rights, and other clauses on Trudeau's social engineering list.  He therefore, just reverted back to Pre-NAFTA tariff policies and put pressure on both Canada and Mexico to use some common sense in their negotiations and drop the social engineering clauses. 

Trudeau's reaction in creating our own tariffs on such things as Maple Syrup, is reminiscent of a spoiled child not getting his way and having a tantrum.  By the way, I thought we exported Maple Syrup.

Trudeau's bringing up "Canadian Troops have fought alongside Americans" was a great insult to Veterans who still have not gotten over his words that "Veterans are asking for more than we can give". 

Trudeau has to accept the blame on this one, and stop playing the "Blame Game".

 

[Jarnhamar]

[quote author=George Wallace] He likely sees no reason to bicker over how to fill quotas of female workers within companies, aboriginal Rights, and other clauses on Trudeau's social engineering list. 
[/quote]

Do we actually do that?

 

[tomahawk6]

I dont think the two leaders get along.