Timothy Birdnow

The cracks are starting to appear in Canadian resolve.

Canadian Premier Danielle Smith Says Trudeau Blew Tariff Negotiations In First Mar-a-Lago Meeting

Remember, the U.S. economy is ten times the size of Canada's. This is a trade war they can't win.

Also, remember the point of many of these tariffs is to drive American production of the goods we do buy from Canada and Mexico. We'll start making stuff here and not rely on potentially fragile supply chains.

For instance we buy a lot of electricity from Canada. Why? They dam rivers that flow into the U.S. and generate power then sell it to us. We could have the dams ourselves and generate the same power but environmentalism has made that unappealing and so we've made outselves hostage to the Canucks and now we are seeing just why this IS a liability; they are threatening to cut this electricity off, or put a big surcharge on it.

Of course they need to sell the electricity as much as we need to buy it at this point. Embargoing electricity to the U.S. doesn't help the Canadian economy.

All this will do is get new energy projects up and running to avoid being hostage to Canada in the future.

And Mexico? Don't we want to move auto plants here rather than buy cars that were once American companies no made in Mexico?

This is all working according to plan.

Posted by: Timothy Birdnow at 08:09 AM | No Comments | Add Comment
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