Sunday, July 13, 2025

currency like a hammock

So Carney dropped the Digital Services Tax (DST) when the felon Cheeto Buffoon indicated trade talks would cease unless the DST was dropped. Though the pretty mouthpiece of the Frumpy said Canada 'caved in' to the demand; I don't see that Carney had a choice, in order for his trade team to continue engaging with the US trade team.

A few days later the felon posted a 35% tax, um, tariff,  on everything coming into the US from Canada; not indicating clearly if already cleared USMCA goods would be exempt. This is to take place on 1 August, unless a trade deal is done, and unless TACO happens again.

Once this announcement was made, my view on these matters flipped - previously I wanted Carney and his trade team to get the best deal possible with the USA under these difficult conditions. Now, I want us as a country to cut all trade with the US. I know this will be extremely difficult on thousands of Canadian  businesses, but we should accelerate not only trade deals with other countries (Mexico, Europe, UK, Asia, etc.) but get real contracts between Canadian businesses and those external country's businesses. Also, get going with the major projects within Canada to employ a lot of people that used to be in businesses with the USA.

The Orange Guy claimed again and again that they need nothing from Canada, so let's give them nothing. For things like electricity from Quebec and Ontario into the US, raise the prices in a predictable manner over the next few years until the prices are exorbitant. For lumber and critical minerals, treat preferably all of our non-US trade partners, and only sell to the US what remains at a high price. For the automotive industry, this is the trickiest one as the supply chain is so involved. Well, get Honda, Toyota, Hyundai and other foreign car companies with the exclusion of China, to have vehicles built in Canada for the Canadian market and gradually ween ourself off American manufacturers. Oil will be the most difficult one, as presently Alberta oil goes through the US to then eventually come back up again into Ontario. For this I see no other choice but to build an east-west pipeline.

And finally, we need to get immigration, housing, social services (education and health) on a plan to ramp up all of this; if we can grow our population in an accelerated way by way of pragmatic and smart planning, this is another way that our economy can grow that will make our market desirable to trade in by all of our non-US trade partners.

No comments: