climate change
Canada

Breaking: Prepare For 25% Tariffs on “All US Bound Products From Canada.” Here. We. Go…

Jan 13, 2025

In a shocking development, Alberta Premier Danielle Smith (after spending the weekend at Mar-A-Lago kissing the MAGA ring) has warned that Canada should brace for a 25% tariff on all U.S.-bound exports, including crude oil, starting January 20th. This revelation comes after Smith’s meeting with President-elect Donald Trump at his Mar-a-Lago resort in Florida. “I’m not expecting any exemptions,” Smith told reporters, signaling a potentially devastating blow to the Canadian economy.

Impact on Canada’s Economy

The tariffs will have far-reaching consequences for Canada’s economy, potentially triggering a severe recession. Economists estimate that a 25% tariff scenario could lead to a GDP contraction significantly exceeding 2.4% and result in the loss of up to 1.5 million jobs across various sectors. This would necessitate aggressive monetary policy intervention, likely leading to higher Canadian inflation and a National Unity Crisis. Alberta would be more likely than ever to choose America over Canada in a fistfight over oil dollars.

Danielle Smith has consistently sided with MAGA over Canada, suggesting this morning that if Canada retaliates, it would be forced to side with America for Alberta’s interests effectively.  Maybe she cooked this up with Trump and team MAGA on the weekend, but this is a sitting Canadian Premier threatening her own country over her own interests.

The inclusion of crude oil in the tariff proposal is particularly alarming for Canada’s energy sector. Canada exports approximately 4.3 million barrels of oil daily to the U.S., accounting for about 60% of U.S. crude oil imports. A 25% tariff on these exports would severely impact Alberta’s oil industry, potentially leading to reduced production, job losses, and a significant drop in export revenues.

Automotive Industry

Canada’s automotive sector, which is deeply integrated with the U.S., would face severe disruptions. Under the Canada-United States-Mexico Agreement, the industry accounts for 22% of imports and exports. With auto parts crossing the border multiple times during production, a 25% tariff would cause production costs to skyrocket, potentially leading to factory closures and massive job losses.

Consequences for American Consumers and the Economy

While Trump’s tariff proposal aims to protect American interests, it could backfire spectacularly on U.S. consumers and businesses. The tariffs would likely lead to:

1. Higher prices for goods reliant on Canadian imports, such as lumber for construction and automotive parts.
2. Increased costs for gasoline, electricity, and heating.
3. Disruptions in supply chains, potentially limiting access to essential products.
4. A potential 1.6% shrinkage in U.S. GDP (approximately $467 billion), costing Americans about $1,300 per person annually.

Economic Isolationism and Its Consequences

Trump’s tariff threat appears to be part of a broader strategy to pressure Canada into making concessions, possibly even considering annexation. This isolationist approach could have severe consequences:

1. Disruption of the deeply integrated North American supply chains, particularly in the automotive and energy sectors.
2. Potential retaliation from Canada, leading to a trade war that would harm both economies.
3. Increased economic uncertainty, potentially deterring investment in both countries.

Worst-Case Scenarios for Canada?

In the most extreme scenarios, the tariffs could lead to:

1. A deep and prolonged recession in Canada, with GDP potentially shrinking by 2.6% (approximately CAD $78 billion).
2. Massive job losses across various sectors, particularly in manufacturing and resource extraction.
3. A significant devaluation of the Canadian dollar, making imports more expensive for Canadians.
4. Potential political instability as economic hardship increases.

While Trump has floated the idea of Canada becoming the “51st state”, it’s important to note that such a scenario is improbable and would face enormous political, legal, and constitutional hurdles.

Canada’s Potential Retaliatory Measures? Bring out the SANCTIONS!!

In response to Trump’s tariff threat, Canada is considering several retaliatory measures:

1. Targeted Tariffs: Canada is preparing an extensive list of American products for potential retaliatory tariffs, including:
– Steel products from key swing states like Michigan and Pennsylvania
– Florida orange juice
– Ceramics, including toilets and sinks
– Glassware and different types of plastics
– Bourbon whiskey and other alcoholic beverages

2. Strategic Export Taxes: The Canadian government is exploring export taxes on critical commodities like oil, uranium, and potash to pressure U.S. markets.

3. Diversification of Trade Partners: Canada could accelerate efforts to diversify its trade relationships, potentially:
– Pursuing closer economic ties with the European Union, leveraging the existing Canada-EU Comprehensive Economic and Trade Agreement (CETA)
– Exploring new bilateral trade agreements with other countries to reduce dependence on the U.S. market

4. Sanctions on American Businesses: While not explicitly mentioned in the search results, Canada could consider targeted sanctions on specific American businesses or sectors to increase pressure on the U.S. administration. Many other NATO countries would follow suit, further isolating Trump’s MAGAmerica plan to take Canada, Panama and Greenland “by force.”

5. Joining Economic Blocs: Canada could explore deeper integration with other economic blocs, such as strengthening ties with the EU or pursuing closer relationships with Pacific Rim countries through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

6. Leveraging Critical Resources: Canada could use this as leverage in negotiations to emphasize its control over critical minerals and resources the U.S. needs.

7. Diplomatic and Political Pressure: Canada could engage in extensive lobbying efforts, contacting U.S. governors, senators, congressmen, and business leaders to highlight the mutual benefits of the Canada-U.S. trade relationship.

Conclusion? None of this is good for Canada or America but Trump and his partners DGAF.

While Canada prepares for potential retaliation, experts warn that a full-scale trade war would be detrimental to both nations. The deeply integrated nature of the North American economy means that any disruption would have far-reaching consequences. Canada’s exploration of its options focuses on finding a diplomatic solution while preparing for the worst-case scenario – turning America’s power and water while crushing key industries that rely on Canadian support with crippling sanctions for key MAGA partners who think this is a good idea.

The proposed 25% tariff on all Canadian exports to the U.S., including crude oil, represents a potentially catastrophic threat to Canadian and American economies. While ostensibly aimed at protecting American interests, this isolationist policy could lead to widespread job losses, increased consumer costs, and significant economic contraction on both sides of the border. Both nations must engage in constructive dialogue as the situation develops to avoid a devastating trade war that would harm citizens and businesses.

 

Dean Blundell

Dean Blundell is a Canadian radio personality. Best known as a longtime morning host on CFNY-FM (The Edge) in Toronto, Ontario. In 2015 he was named the new morning host on sports radio station CJCL (Sportsnet 590 The Fan). Dean started his career in radio in 2001 and for nearly 20 years been entertaining the radio audience. Dean’s newest venture is the launch of his site and podcast which is gaining tremendous momentum across North America.

Subscribe Now!

Which newsletters would you like to receive?

Yes! By providing my email address, I agree to receive communications from Crier Media (this can be changed at any time). Please take a look at the Privacy Policy and Terms of Use for more details.

This field is for validation purposes and should be left unchanged.

Related stories