Summary
Canadian Prime Minister Justin Trudeau announced retaliatory tariffs after Donald Trump confirmed 25% tariffs on Canadian goods and 10% on energy, set to take effect at 12:01 a.m. Tuesday.
Trump justified the move by linking it to fentanyl smuggling concerns.
Trudeau called the tariffs “unjustified” and imposed 25% tariffs on $155 billion in U.S. goods, with $30 billion effective immediately and the rest in 21 days.
He warned of price hikes and job losses in the U.S., arguing the move violates Trump’s own trade agreement from his last term.
Tariffs on imports make the imports more expensive and push people to buy non-tariffed goods. This causes the exporting company to lose income from their exports
Sort of. The economy is not as robust as consumers like to believe it is.
Say you’re a manufacturer and you make Widgets, and an essential component for those is Greebels, you likely have a supply chain already set up to have those Greebels delivered to your factory. Well, if those Greebels are now subject to a 25% tariff, they become that much more expensive to import. In theory, this would cause you to look for alternative domestic suppliers of Greebels to avoid having to pay what is essentially a 25% tax just to get essential components for your otherwise domestic-made product, but there are a number of factors that might make that impossible. For example, you might be under exclusive contract for a number of years with the foreign supplier, or you might only use Greebels supplied from the foreign Gizmo Corporation in your Widgets because you based your design on using their proprietary components and you can’t switch to a competitor without redesigning your product entirely or violating intellectual property laws.
Even if none of those unusual edge cases apply, you might still opt to order your Greebels from the Gizmo Corporation - perhaps they are still cheaper than a domestic alternative after calculating the price difference, especially considering the labor laws here are more strict than it in in places such as China or Bangaladesh where minimum wage laws are almost nonexistent. If that is the case, there may not be any real domestic alternative because they can’t stay competitive in the global market by paying their workers a 1st world minimum wage. Finally, setting up your own factory for turning raw materials into Greebels to use in your Widgets is a prohibitively expensive venture that likely wouldn’t cause you to turn a profit for many years and would still require you to source the raw materials which may not be available domestically.
The most likely/realistic outcome is having the Gizmo Corporation agree to send their product to be manufactured/assembled/stored in a factory/warehouse in another country that is not subject to the tariffs and then import it, which bypasses the tariff altogether without compromising the specific product you are used to ordering (so long as the rerouting doesn’t end up costing more than the import tariff)
or
Your company will eat the cost of the import and raise the price of Widgets by 25% to compensate for the increased cost per unit.
There will probably be a tiny dip in the exporting company profits at a result of tariffs, but they’re not going to have a significant enough drop in revenue to cause any kind of panic.
Capitalist companies may lose income from lost sales, but they will be raising prices to match the tariff. Probably throw an extra 5-10% on top of that for greed, because they can blame it all on the tariff.
I was going to buy an item but the price went up since yesterday. Not going to buy it now. It’s his tax on us. Not going to finance Krasnov’s destruction of America.
should double those tariffs.
If Trump escalates, so do we.
If we go “all in” on day one, we don’t have any future leverage.
you are right, got to strategically tariff so it hurts US but with minimal impact on Canada.
got to strategically tariff so it hurts US but with minimal impact on Canada.
Yup.
That’s why the initial list of counter-tariffs were specifically chosen to hit the overlap of red states and things we make ourself, or can easily get elsewhere, or can comfortably do without for an extended period of time.
Ok I’ve been wanting to ask this and all the articles don’t really address it so I’m confused.
The whole rhetoric is that Trump’s tariffs will impact the citizens with increased prices and it’s really just going to cause economic harm. Like cool, I can understand that. But why is Canada then performing the same action effecting their citizens? I get it’s retaliatory, and suppose to expedite (hopefully) a return to normal trade policy. I just don’t get why this is the move when it’s a bad move in the first place (two wrongs don’t make a right and all). Please be gentle, I’m honestly just confused.
There really aren’t any other moves to take. It’s either this or lie down.
Also, I will say that tariffs can be a lot easier to manage if you only implement them against one of your trading partners. While major imports from that trading partner, and any goods produced with any of those imports, will see a price hike, most Western countries have very diversified economies and can make up the difference elsewhere. The real trouble begins when you start having blanket tariffs affecting all of your major trade partners, which seems to be Trump’s plan.
It’s still going to hurt - we import so much from the US that this is going to impact Canadians no matter what (even before price hikes in unrelated businesses starts).
It is going to hurt, and to my understanding it’s already begun impacting businesses. The only salve I can offer is that us Americans are going to hurt a whole lot more. Hopefully, Liberal is able to maintain power up there, and is working on new trade deals with new partners. Nothing the U.S. produces is really unique, so alternatives can be found, but it’s going to take time to set-up new agreements.
If the tariffs are taylored correctly they can cause more pain in the US while minimizing cost to Canada. For example, us grain is not cheap and you can make it so that Canada buys from other countries at a similar cost. This will hurt farmers in the US (a key group for Trump) while not really hiring Canada.
Make it hurt for the morons that support nazis
Trump’s tariffs are universal. Meaning that even in cases where the only practical option is Canada, for example potash, they have to suffer a direct 25% price increase.
The Canadian tariffs are highly selective, we only tariff goods that have alternate non US suppliers at similar prices. In this case the tariffs would mostly reduce market competition without directly affecting price.
I think the better approach is to not enforced the digital lock aspects of the free trade agreement and have Canada be a leading repairer of farm and industrial equipment.
Doesn’t Belarus also produce potash? I thought they were dropping sanctions against them to get it
I mean yeah, but Canada produces an ENORMOUS percentage of the world’s potash.
Edit: checked the numbers. Canada produced ~38% of the worlds potash (25mil lbs), while Belarus produced 5-7mil lbs, most of which already goes to China, Russia, and India. Canada exports 46% of our potash to the US, meaning the US could buy ALL of belarus’ potash and still not meet current supply.
Aluminum is another one, apparently. The element is everywhere, but it takes massive amounts of electricity to get in metal form, which we just happen to have from all the dams in great lakes region.
Our Aluminum companies are literally planning to change nothing. They expect their American customers will just eat the cost.
Higher import taxes (tariffs) on Canadian goods for Americans will increase the price, presumably reducing the amount of these goods that Americans will buy which hurts the Canadian producers. The only thing Canada can really do is hurt American producers in the same way, hence increase tariffs to reduce Canadian consumption of American goods and hurt American producers just as much (or preferably more). Hurting each other is a loss-loss strategy though, which explains why trade wars typically do not have winners only losers…
My understanding is that when the americans institute their tariffs, all canadian products become more expensive for americans and not price competitive with local american products. This results in a decrease of purchasing from Canada.
If we do nothing, then Canadians are still buying just as much american as before and there are little to no consequences for the tariffs
With tariffs on both sides, the effect is roughly “equalized” in that we are both now buying more local goods and less trade over the border
unfortunately, America has created a system where we can’t really do anything about the president at this point I am really wondering how long will the global world order allow Donald Trump to continue to screw things up for everybody else? Not just talking about economics with Mexico, Canada and China. But also the military situation in Ukraine, which directly impacts the European Union as well as NATO 
The problem is that the global order is collapsing. That’s what makes this possible for Trump and his companions. It’s been going to shit for a while. We’re entering a world where international law will be less important. Sadly.
International law was already completely irrelevant when it came to the developed world imposing its will on the entire developing world, or anyone classified as an “enemy”. There are hundreds of violations across the years that were never enforced, from America carpet bombing south east asia and installing puppet regimes around the world, to Russias use of phosphorous warheads and chemical weapons in Syria, to Israel (and allies) genocide in Palestine.
International laws have only ever been, at best, gentleman’s agreements among the developed world’s oligarchs and political classes.
What’s happening now is the US political class and oligarchy are shifting allegiance to fascist authoritarianism and imperialism, because both are populated with mentally ill narcissists and psychopaths of insatiable greed and megalomania, completely detached from reality; no different to the feudalist monarchs, emperors and pharaohs of old.
I also don’t believe this is an America problem, as much as it is a capitalism problem. Americas oligarchy are no different to Russias oligarchy, who are no different to Chinas oligarchy, who are no different to every oligarchy. They are borderless, stateless, only worship wealth and power, and are a reflection of the psychology created by unchecked wealth and power; these people view themselves as the rightful rulers of humanity, by virtue of their wealth and power, and views concepts like democracy a direct threat to their existence.
Fucking phenomenal run for American upper-middle classers & up for daysssss (decades)
Staycations on every screen, DoorDash, weekends at national parks, summers full of music festivals, no air raid sirens or drafts
Little blips of economic busts and terrorism, but overall stable with a solid stock market. The climate taking its beating without much protest. The developing world manufacturing much of our own world for pennies on the dollar, their conditions out of sight and out of mind. Stagnant minimum wage, the prison industrial complex, the crimes of the healthcare industry - captivating John Oliver segments, yes, but not pressing personal problems.
waow that was a lotta work over the years from a lotta good people to get the US here, and now…
(job hunt question)
Any recommendations for organizations that might be hiring right now and looking for people who want to fix this?
We’re entering a world where international law will be less important. Sadly.
At the risk of sounding like a broken record: International law was never important. It was always rules for thee and not for me.
Lee Harvey Oswald found a way to do something about the presidency. Just saying…
Lee Harvey, ONI and Guy Bannister
I believe you mean Bernard Montgomery Sanders who we all know was the second shooter.
I guess this is a joke, but it’s dangerous because any conspiracy theory can find many people who take it seriously these days.
It is Robert Evans of Behind The Bastards has been making this joke for 6-7 years now
I mean then Vance would succeed him, which is… not good. At least Trump is an idiot.
Unfortunately Americans are convinced they can’t do anything about it, so they don’t.
I vote, I protest, I make convincing arguments to family members to not vote for morons…what else we got? I mean, within the boundaries of the law, of course
Americans are very proud about the second amendment
The boundaries of the law exist to protect the status quo, which is why every important movement has been illegal.
I didn’t want Trump to become president for many reasons, one of the main ones being I didn’t want him to pull USA out of NATO, because it strengthens our shared enemies.
Things are actually going worse than I expected, which is really impressive.
I know people are probably sick of hearing this, but I kind of figured this would be the worst possible case imaginable because the same thing happened to Hitler. They threw his ass in jail and then after a couple of months they let him walk and then when he regained power, he knew that he could never lose power again, and if he did, he’d never be able to accomplish his personal objectives. 
There’s something about history that we can learn from here. I don’t know why Trump was even allowed to run, but yeah, here we are. 
He was allowed to run because McConnell stonewalled Obama and let Trump select a bunch of Supreme Court appointees, which then decided that trump can’t be held accountable for anything.
Then everyone decided the rule of law was important, except trump, which means he’s steamrolling every safeguard we had.
Plus McConnell as leader could have gotten R’s to convict, at least in the second impeachment after Jan 6th, which was a short window when they would probably have gone along with him. It would have made trump ineligible to run again. So I place a large part of the blame on McConnell.
The SCOTUS ruling is just icing on the cake for trump, because once he got into power again, SCOTUS isn’t going to be much of a problem for him no matter how much they might rule against him. He’ll just ignore it and no one will do anything about it because the entire repub party supports him–they are the ones who would have had to check his power but they’re completely on board with him and they have the trifecta, total control.
That’s why I’m worried about the midterms–they aren’t going to give up that power willingly which means they’re more than prepared to do whatever it takes to stop a free and fair election in 2026.
McConnell basically stated that Trump deserved conviction, but didn’t want congress to be the ones to do it. He wagered that it’s a problem that would take care of itself without having to be the ones to piss off the MAGA people he hoped to keep energized and aligned to the GOP even as Trump went away.
Then the SC basically said it’s the job of congress, and not the courts (although they reserved the power to specifically declare something as not a duty of the president, so the courts could proceed if and only if the supreme court signs off on it).
To the extent that it could have maybe had the SC ultimately rule that January 6th was not an official duty, DOJ slow walked the process so that it was way too late before the SC would have even had the chance.
Merrick Garland was Biden’s biggest mistake. By far. But it’s still ultimately McConnell and the other repub senators’ fault. They had the power and more importantly the constitutional responsibility to stop him. They violated their oaths and failed in their duty. It was their cowardice and corruption that allowed this.
The US is one of the only, if not the only country in the world where what can be done is enshrined in the constitution.
They absolutely can do something. They don’t want to. They support this.
This is not Donald Trump, this is America. They voted for exactly this. And they seem to be enjoying it.
Trust me, we (the sane of us) don’t like any part of the dumbest idiots of the country letting it the rich narcissist Nazis takeover them.
I am NOT enjoying it and I’m doing everything in my power to resist this administration.
Checks instance name
In Minecraft. Always in Minecraft.
Fair, not everyone, but a slight majority of people still support this shitshow.
The polls I saw said the opposite.
And that’s ignoring that a large percentage of those who do still support our are choosing to believe their messiah over reality and think that it will make everything cheaper; I do believe that as soon as it’s no longer deniable a large chunk will turn on him. But unfortunately not all of them since plenty will be fully prepared to just blame someone else anyway
I hope you’re right, but I don’t think it’s hyperbole to call them a cult anymore, if it ever was. I think they will literally reject all evidence and blame whatever scapegoats are decided on by the administration.
A chunk of them definitely will. We just need enough to make it an issue, which probably isn’t all that many.
I am really wondering how long will the global world order allow Donald Trump to continue to screw things up for everybody else?
I mean what are they gonna do? Invade and depose him? We’re witnessing the end of the Pax* Americana, simple as that.
*Terms and conditions apply.
Well if this were the middle east or a communist problem , western countries would just have him assassinated…which is horrible- but its true if you go back long enough
The trouble is that the problem is not confined to just Trump. If he dies, Vance becomes president. If they both die, Mike Johnson does. This is not a coup by a single person, this is an entire philosophy - neo-fascism - thats now in charge of the US. Its goose-stepping turtles all the way down.
While that’s all true, nobody likes Vance or Johnson the way they like Trump. If he dies and Vance replaces him, I expect a lot more pushback than what Trump gets.
I don’t think any of them give two shits about pushback. Unless that pushback takes the form of forcible removal from power, they wont care in any way.
I don’t think it’s within other countries capabilities (Israel maybe, but why would they), nor in their intrest.
In some failed states it’s considerably easier to have certain people eliminated (and for sure has happened many many times).
Current USA is an internal affair with external effects. Other countries can’t do anything, that’s what happens when 1 country has the very biggest strongest military and security machine ever (way bigger than any competitor, no country get near). Even if they’ld want to, there is no way. And the current situation is unpredicatble and not stable, it would become even less predictable and less stable when certain people were to be assassinated.
If assassinations happen in the trump admin in the near future, I think it would more likely come from USA security services internally. Not sure if it’s for the better. Decent chance in that case of civil war type scenarios tbh.
at this point civil war is maybe the best we can aim for
I’m sure there will be a welcome mat, door is open
Surely the US isn’t the only country that has foreign leaders assassinated?..
American here.
100% support you Canada. Keep it up.
<3
We know it’s not all of you.
Ditto. Our only hope is for brave nations like yours to smack our leaders down.
My fear is that, the brain washed swarms will ignore the shortcomings and scapegoat something else.
By the end of these 4 years, everyone will be jobless and prices will be unreasonably high. Wonderful.
4 years? Do people really think that there will be mid-term election? and presidential one in 4 years? really?
I thought the point of all this was to ratchet up tensions so Trump could declare martial law and suspend democracy indefinitely.
“We have always been at war with everyone but Russia and China….”
Yes, elections are run by the states, not the federal government. Will red states have fair elections? Absolutely not.
Just like, checks notes 96 years ago!
Carry on Prime Minister Trudeau and create better trade deals with the EU, EEC and friendly Asian countries.
We need to really turn the screws into the U.S. Along with applying tariffs, we also need to just outright stop delivery of critical materials they need. Full Stop.
I’m know this is just a sounding board, but honestly I’d love to see the cutting off of any and all essential raw materials they need. I’m sure they can source it elsewhere, but they most likely can’t get enough of it fast enough.
Cut off anything they need for energy and more importantly: agriculture.
People can live without power. Make their stomachs ache.
Trump is a diseased cunt who doesn’t understand what happens when things don’t go his own way. Let’s show him.
I said it before. Stop sending aluminum and steel and aerospace and military manufacturing would suffer immensely. That is 90%+ of all good made, metals have strict import requirements and certifications, and we couldn’t just make our own on a whim.
Yes make us hurt. It’s the only way.
Starting off slow and ramping up sends the correct message that (a) we want to find a way to stop this garbage and (b) we can and will make things more painful for business and consumers alike if it continues long term.
Everytime Trump threatens tariffs they should out a one week export ban on literally everything to the US… That would really shock the system.
The Beaverton had as a headline a few weeks back along the lines of “Americans choose the most expensive way to figure out what they purchase from Canada” which I thought was appropriate.
Why doesn’t trump just setup fentanyl production in the states? Seems like a easy fix for me /s
Trump is such a vindictive moron. Whether he’s a Russian asset or just a certifiably stupid, the end result is the same.
Good god I hate this fucking timeline. Fuck corporate America for backing this monster and fuck everyone who voted for him. Fuck the Democrats for collectively shrugging about all this too.
Whether he’s a Russian asset or just certifiably stupid
Most definitely both.
Yeah, if he was just in it for his own aggrandisement, none of this would make sense. The orders are very clearly coming from Moscow here, because only Putin benefits from all this bullshit.
And he’s stupid for going along with it - a smart Russian asset US president would get something in return other than a pat on the head.
I mean presumably he’s getting a pile of money. Or there’s kompramat. Or, more likely, both. Also he just likes when people talk to him like he’s special, I’m sure it took the KGB all of 6 seconds to figure that out and take advantage of it
Don’t retaliate 1:1. Retaliate 5:1.
Burn the fucking bridge already.
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Today I watched both Trudeau and Sheinbaum’s addresses.
I must say that Americans get even worse reputation everytime Trump and Vance talk even just because of the contrast with some of the best, most prepared speakers and I must say attractive individuals in politics today.
Fuck, marry, kill?
Despite being a boring hetero male, I am so conflicted between the first 2.
Nobody married to president sheinbaum would be boring
Trudeau’s measured retaliation shows Canada won’t back down but prioritizes diplomacy over chaos.
🐱🐱🐱🐱
