Excuse my ignorance but wouldn't that make things more expensive for Canadians as well?
:edit: thank you all for answering me. I totally understand now.
Fuck trump
this post was submitted on 04 Mar 2025
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Yes. It's alright, I've managed to mostly eliminate American products. Anyone smart or at least patriotic has looked into it as well, since the madness began. It was kind of neat watching the US products just sit on the shelves while Canadian stuff emptied out.
To reiterate what all our politicians have been saying to US media, Trump is raising prices on Americans to hurt us, it's for no good reason, and we're forced to do the same on our side.
Genuine question, if Trump's tarrifs just make things expensive for Americans why would we put retaliatory tarrifs that effect us?
Do tarrifs really just make things more expensive for the home country? How do they effect the country the tarrifs are imposed on?
Not an economic, but everything is entangled
Say you have two products: one from USA ($110) and the same from Canada ($100). Now we impose a tariff of 25 pct on the Canadian product ($125).
This means that consumers are going to buy the cheaper product, resulting in less income for the Canadian manufacturer.
The USA manufacturer can increase the price to $120, and still be cheaper than their Canadian counterpart. All while prices for customers are increasing
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Trump's tariffs make Canadian stuff more expensive for Americans, so they'll tend to buy less Canadian stuff. Without retaliatory tariffs, Americans only buy American stuff, and Canadians continue to buy American stuff, so nobody is buying Canadian stuff. This hurts Canada because nobody is buying their stuff. With retaliatory tariffs, US stuff becomes more expensive in Canada, so it encourages Canadians to stop buying American and spend their money in Canada.
Do tarrifs really just make things more expensive for the home country? How do they effect the country the tarrifs are imposed on?
It makes it harder for that country to sell. Which means layoffs and loss of asset value there. The most dramatic example is the auto industry. They're talking about just closing shop immediately, because their business plan depends on moving things back and forth across the border as they gradually get assembled.
If this goes on as long as I suspect, there will be new businesses that bubble up to use the same resources, but it's never going to be as nice as a single integrated continent, and in the meanwhile, time is money, things can't grow and develop while just sitting there. Not to mention the workers that now don't know how to put food on the table.
Genuine question, if Trump’s tariffs just make things expensive for Americans why would we put retaliatory tariffs that effect us?
That's actually a separate question. It's a matter of tit-for-tat, partly. But, there's also the fact that the US government is pocketing all those tariffs. If we didn't have a bit of extra income to match, I imagine it'd get really hard for the government to pay for things with our now weaker currency. Not retaliating was considered, though.
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Yes, but items are targeted to inflict the least amount of pain. We don't neeed orange juice or bourbon for example.
And inflict the maximum amount of pain on specifically the bad Americans who are doing this.
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American here.
100% support you Canada. Keep it up.
<3
We know it's not all of you.
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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.
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