alt Hacker NewsYou are both right. The world capitulates more than it should. But the world is also moving away and building contingencies.
The world needs leadership. And Canada is helping with that.
I do not think that reciprocal tariffs are actually the answer though. They hurt both sides and the US is not a rational enough actor to respond like you hope they will. The answer is in shifting trade away from the US and isolating their economy. It takes longer but it is what will work. And even if their behaviour does not change, their power will fade with their economy.
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> I do not think that reciprocal tariffs are actually the answer though. They hurt both sides and the US is not a rational enough actor to respond like you hope they will.
Reciprocal tariffs will be crafted to specifically to avoid damaging the Canadian economy. Input to Canadian manufacturing for example won't be touched, but other sectors where the product is more of a luxury or there's an easy replacement available will be targeted. Perhaps the digital services tax or similar will make a return.
But what tool do you use to shift trade away from the US to other countries? Tariffs are perhaps the most efficient mechanism.
> I do not think that reciprocal tariffs are actually the answer though. They hurt both sides and the US is not a rational enough actor to respond like you hope they will. The answer is in shifting trade away from the US and isolating their economy. It takes longer but it is what will work. And even if their behaviour does not change, their power will fade with their economy.
I don't really agree. For one, they did help China, the US eventually caved because US businesses and consumers got really upset. The same can be true here. The admin doesn't care, but the business owners do. They're already being squeezed by tariffs on their parts, further damaging their exports will cause them to complain to the admin. That's something Trump has historically caved on to some extent.
Also keep in mind that the way Canada will do tariffs is the way they should be used, not blanket but strategically to have as little impact on Canadians and as much impact on US businesses as possible.
As a Canadian, my hope is that we can build stronger relations with Europe. I don't think anyone can avoid China but I would rather minimize those ties.
We can't afford to cut all ties with United States due to our geography and history, however it would be prudent for us to reduce our dependency.
I don't think majority of Canadians wish to see the nation in such a vulnerable position again with regards to US. Banking on a single player in terms of security and trade has proven to be a risky endeavor.
I have much love for the American people, but I support the actions of our government.