How Tariffs and trade decisions will hurt Canadian households
CALGARY, June 28, 2018 – Back in May, U.S. President Donald Trump announced tariffs on Canadian steel and aluminum along with a series of global tariffs… They took effect on June 1, the Canadian federal government retaliated with tariffs of its own… on goods imported from the U.S., set to take effect July 1 – Happy Canada Day!
Canada’s tariff impact list (can be found here) includes not only a 25 per cent tariff on steel and aluminum products of its own, but also a 10 per cent surtax on an wide mix… (and I can’t stress the variety enough!) of more than 120 consumer goods, including dishwashers, fridges, washing machines, pens, playing cards, beer kegs, Ketchup, mustard, toilet paper… yup toilet paper!
The goods add up to an estimated $16.6 billion worth of U.S. imports.
Foreign Affairs Minister Chrystia Freeland stated that the U.S. consumer goods were chosen because alternative products could “be easily sourced from Canadian companies or non-U.S. trade partners.”
Ok. Fair Enough. That may be true for a bunch of stuff on that list.. but not all…. What about the other hard-to-acquire items????
Well… you pay more!
The Retail Council VP of Public Affairs Karl Littler states – “If you are insistent that you want the Verona blend from Starbucks and you will not accept a substitute, then all that’s going to happen is you’re going to end up paying more,”
“Dang.” I say as I glare down at my Starbucks Latte….. — In a reusable mug thank-you-very-much-…
How about boats?
The National Marine Manufacturers Association says 65 per cent of boats sold in Canada last year came from the U.S., and there aren’t enough domestic manufacturers to supply the Canadian market.
Now – Here’s the kicker — States that are DEPENDENT ON CANADA FOR TRADE… LIKE NORTH DAKOTA…. ARE HUUUUGE TRUMP SUPPORTERS…
On Wednesday evening, U.S President Donald Trump held a Make America Great Again rally at Scheels Arena in Fargo, the largest city in the state… a state where over 64 per cent of voters supported the Republican leader in the 2016 election…
The irony… North Dakota is also conveniently the U.S. state most heavily dependent on trade with Canada! Yes I’m serious… Almost 84 per cent of the state’s exports end up north of the border, while 54 per cent of North Dakota’s imports come from… uh oh.. Canada…
Trump has also publicly threatened a 25 per cent tariff on automobiles built in Canada, and linked that threat directly to the stalled talks to renegotiate the North American Free Trade Agreement. (NAFTA)
Experts all across Canada consider the automobile decision to be costly, if not dire…
So, a unified front may be needed?
Well that’s nice sentiment Canada, and not a moment too soon.
I hate to sound like a whiny millenial, but I’ve been calling on the government to have a unified front for a while now! We can see how division down south can impact decisions both financial and social, and I don’t want to see that happen here.
Discussion and debate is ALWAYS essential, but I also feel more strongly tied to my Maple Leaf than I do my latte…
Hot Topic Thursday!