DougB
Senior Member
The tariffs will be short term as the American public will reject the ensuing price increases, and Trump will inevitably be distracted by some other problem of his own creation. No Canadian action is going to influence the trajectory on tariffs. The British Empire was still strong in the 1890s, so an alternative to the American market existed. That is not longer true. "We're so European" might play well to United Empire Loyalist sympathies, but pivoting to the most demographically and economically stagnant region of the world is unlikely to replace lost opportunities within North America.Tariffs the USA brought in in the 1890s caused Canada's industrial and trade policy to orient away from the USA for 50 years.
The USA is juicing their economy with huge deficits. Eventually that will need to end.
It is clearly not. not when MAGA has declared that Canada is the out group, and not only that, but that Canada should not exist.
Sounds like the Carney platform.
The US has the luxury of getting away with large deficits. The USD being the only reserve currency means that the US must run current account deficits to supply the rest of the world with dollars. I agree that far less of that should and will come from government borrowing. Remember, if debt markets turn on US government borrowing, interest rates across the world will ratchet up, meaning that Canada has a choice of austerity or austerity. I also question how much the deficits are juicing the American economy. If for example, the US government reduced its deficit through headcount reductions, how much would the economy benefit from those people contributing to more productive areas?
Canada has declared that MAGA as the out group. Unfortunately politics resembles high school so being peripheral to the unpopular is the kiss of death.
Carney's platform is too recent. Perhaps if he had been leader for a year he could distance himself from stated positions on climate change and wealth redistribution. He has said many of the right things, but at the same time maintains disasters like Telford and Butts as advisors and can't walk away from an O&G emissions cap.