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CAN-USA Tariff Strife (split from various pol threads)

How do we get to 3% of GDP...

Idea from the previous UK Chancellor of the Exchequer (Minister of Finance).

5:15PM

Jeremy Hunt: Slash welfare to hit US defence spending levels​


Jeremy Hunt has said that the UK could increase defence spending to US levels if only welfare spending was scaled back to where it was in 2019, before the Covid pandemic.

The former foreign secretary and chancellor zoomed in on the country’s ballooning welfare budget in an intervention in the House of Commons amid debate about how to fund military spending increases.

Mr Hunt said to David Lammy, the Foreign Secretary:


Mr Lammy said he thought Rachel Reeves, the Chancellor, will look at the idea “very closely”. Reforms to the welfare budget are due to be unveiled next month.

What is interesting about that exchange is that the idea was not rejected out of hand by the Labour government just because it was proposed by a Tory.

The other interesting bit is that money that the government is extracting from the economy to be pumped back as welfare payments could just as easily be pumped back into the economy as jobs for soldiers, active and reserve, jobs in MOD procurement and jobs in the arms business building weapons, trucks, comms, UAVs, missiles and ammunition etc - along with beans, blankets and bandages.

If we want to be adults we have get off the teet ?
 
Meanwhile, in the home of the Nanaimo Bar...


B.C. man uses TikTok to encourage U.S. tourists to Nanaimo​


A call for Americans who are fed-up with tariff threats and rehtoric about making Canada a 51st state to visit Nanaimo is gaining traction online. As Liam Britten reports, the city and the local man behind the call are hoping for a big turnout.


 
How do we get to 3% of GDP...

Idea from the previous UK Chancellor of the Exchequer (Minister of Finance).

5:15PM

Jeremy Hunt: Slash welfare to hit US defence spending levels​


Jeremy Hunt has said that the UK could increase defence spending to US levels if only welfare spending was scaled back to where it was in 2019, before the Covid pandemic.

The former foreign secretary and chancellor zoomed in on the country’s ballooning welfare budget in an intervention in the House of Commons amid debate about how to fund military spending increases.

Mr Hunt said to David Lammy, the Foreign Secretary:


Mr Lammy said he thought Rachel Reeves, the Chancellor, will look at the idea “very closely”. Reforms to the welfare budget are due to be unveiled next month.

What is interesting about that exchange is that the idea was not rejected out of hand by the Labour government just because it was proposed by a Tory.

The other interesting bit is that money that the government is extracting from the economy to be pumped back as welfare payments could just as easily be pumped back into the economy as jobs for soldiers, active and reserve, jobs in MOD procurement and jobs in the arms business building weapons, trucks, comms, UAVs, missiles and ammunition etc - along with beans, blankets and bandages.

And typical British responses (inadvertent and deliberate) to the former Chancellor of the Exchequer.

 
You know what? That was old when I was in grade 6 and one of my classmates was a young lady with that last name.
 

Maybe. Or maybe not. Who knows right?
Given that his tariffs on Canada are legally predicated on a declared emergency, and his administration has expressed pleasure with our progress on that purported emergency, I’m curious how he squares this legally? The president’s ability to unilaterally impose tariffs is limited by certain laws.
 
Given that his tariffs on Canada are legally predicated on a declared emergency, and his administration has expressed pleasure with our progress on that purported emergency, I’m curious how he squares this legally? The president’s ability to unilaterally impose tariffs is limited by certain laws.
I admire your optimism that this POTUS is bound by the rule of law.
 
I admire your optimism that this POTUS is bound by the rule of law.
I’m not the least bit optimistic that POTUS feels constrained by laws. I have zero faith that he hasn’t acted outside the scope of his legal authorities. However, if there’s not a sound legal basis, that can be challenged in courts.
 
I’m not the least bit optimistic that POTUS feels constrained by laws. I have zero faith that he hasn’t acted outside the scope of his legal authorities. However, if there’s not a sound legal basis, that can be challenged in courts.
He can be challenged in the courts but if he chooses to ignore a court ruling he's immune from prosecution if his actions are part of his official role as POTUS...so???
 
He can be challenged in the courts but if he chooses to ignore a court ruling he's immune from prosecution if his actions are part of his official role as POTUS...so???

Sure, but he, personally, doesn’t actually execute any of the directions he gives. Executive agencies and organizations do, and the courts are perfectly capable of temporarily or permanently enjoining them from committing illegal acts. There’s quite a torrent of ongoing matters in court just like that right now.
 
Is this really where we want to spend our defence dollars?


From the article:

And here's a good interview on the subject on the Angry Planet podcast:


Participate on the sensor side of the program? Absolutely. (i.e. NORAD Modernization)

Spend a ton money on extremely expensive intercept missiles that are only around 50% effective in highly unrealistic best case scenario tests and in quantities that are effectively irrelevant considering the number of missiles that would be incoming in a nuclear conflict? No

There are literally hundreds of areas of defence spending where our money would be much better spent.
Is the ICBM threat the primary threat? The old plan was Ballistic Missile Defense. The new plan is Integrated Air Missile Defense which encompasses Ballistic Missiles of all types (ICBM, MRBM, SRBMs, SLBMs) as well as all manner of air vehicles, from cruise missiles and aircraft to helicopters and UAS, launched from all manner of platforms including boats, ships, trucks and aircraft. And they can be launched by all manner of adversaries, foreign and domestic, political and criminal.




The USAF and the US Army are trying to figure out themselves how to slice the air defense pie. Who is responsible for what and if they have the right tools in the right number.

I will go one step further and suggest that military bases and vital points are not the sole, or even primary points that need protection. Canada lists the following Critical Infrastructure segments.

Energy and utilities
Finance
Food
Government
Health
Information and communication technology
Manufacturing
Safety
Transportation
Water

Fortunately most of those elements come together in our urban centres so if we gear ourselves to protect those centres then we probably cover the vast majority of the nodes related to the Critical Infrastructure. So if we have a plan to protect our "places" then we have done much to protect ourselves and our lifestyle.

On the other hand there are a lot of "spaces" between the "places" in Canada and a lot of the infrastructure is dedicated to connecting those "places" across those "spaces". Sometimes it is the difficult matter of protecting thousands of kilometers of linear features like roads and railways, power lines and pipelines. Sometimes is a matter of protecting isolated but significant nodes, everything from Cell Towers to places like Hardisty.



To that we can add places like the Burnaby oil terminal, the Kitimat LNG terminal and even New Brunswick's Belledune port should it, like Manitoba's Churchill or Ontario's Moosonee find a renaissance.

The vertical threat is no longer simply ICBMs delivered by state actors. That is probably the least of our worries. I suggest that the aerial threat is now a lot more prolific and a lot more mundane and that that is what the Integrated Air Missile Defenc(s)e needs to be about. That is what I think Homeland Security/Northern Command/NORAD are all seized with that issue. And that is one that I hope we can find common ground with the US even in Trump's world.

By the way, I suspect that an effective IAMD system for Canada would eat up a large portion of the 5% of GDP that Trump wants allocated to our defence.

There are a lot cheaper AD options to deal with air-breathing threats and those options tend to be much more mobile than the ABM systems (and don't get me started on the "Star Wars" fantasy of space-based interceptors).

Do we need AD capabilities? Yes!
Do we need NORAD upgrades to improve our domain awareness? Yes!
Do we need ABM and space-based interceptors? No!

UAV's are certainly a threat (and so are rockets and mortar shells) so SHORAD, C-RAM and EW capabilities are definitely required but don't need to be part of a North-America wide Iron Dome system.

If a raft of hypersonic glide weapons and/or cruise missiles are launched against us I guarantee that ICBM's will very shortly after be flying in both directions. The US will not risk such a conventional attack being an attempted decapitation first strike and will launch on the instigator. And they in turn will retaliate with their own ICBM's.

MAD is very much alive and well. Attempting to create an effective ABM shield over the US/North America (assuming it doesn't bankrupt us first) will just result in our enemies increasing their number of missiles to overwhelm whatever systems we put in place. And if it actually looks like we are on the verge of creating a system that would allow us to survive an enemy attack then there would be a HUGE incentive for our enemies to strike first before it's in place because once it is they will be wide open for a US first strike.

Let Trump waste his tariff money for four years and get no meaningful defence in return. We've got much more useful things we can spend our money on.

$0.02

Further to the above discussion


WASHINGTON — Pentagon officials are crafting a plan to expand the United States’s missile defense system under the “Iron Dome for America” initiative, and grappling with whether new tech to down aerial drones should also be included, according to a two-star Army general.

“There’s talk about does that involve counter-UAS [unmanned aerial systems] or will counter-UAS be established [separately],” Maj. Gen. David Stewart told Breaking Defense earlier this month.

Stewart — dual hatted as the director for the Joint Counter-Unmanned Aircraft Systems Office and Army fires — said he and his team are working with Pentagon leaders and other agencies to determine just what route to take.

Interesting meld there - Army Fires and Joint C-UAS
Is Air Defence an Army, Air Force or Space Force responsibility, or even an Navy, Marines responsibility?
And when the Air Force is looking at using Army Howitzers in the Air Defence role things are getting complicated?




In late January, President Donald Trump issued the Iron Dome for America executive order calling for greater investments for a multilayered homeland air defense system, including a requirement for the development of space-based interceptors. That order started a 60-day clock for Secretary of Defense Pete Hegseth to develop a plan to defend the homeland against “ballistic, hypersonic, advanced cruise missiles, and other next-generation aerial attacks from peer, near-peer, and rogue adversaries.”

It is the term “other advanced aerial attacks” in the EO, that Stewart said has the department working through if C-UAS should be included.

“As we take on Iron Dome for America … the intent is really to [be as] cutting edge as we possibly can as a nation,” he said.

“What do we have right now that gets out [to] the cutting edge [and] is that the right capability, versus what do we need to invest in,” Stewart later added.

The proliferation of aerial drones on the battlefield has been pushing the services to focus on new counter-drone weapons for years to varying degrees of success. More recently, though, there have been a plethora of reports of drone sightings and incursions on military installations throughout the US.

“I have no doubt that there’s significantly more incursions that we don’t see, either with a system or with our eyeballs,” Gen. Gregory Guillot, the commander of US Northern Command and North American Aerospace Defense Command (NORAD), told reporters in October 2024.
 
Why is so much of Trump's attention on money?





In the middle of Donald Trump’s tornado of tariff announcements, policy analysts have been clinging to a single hope.

There is a perceived wisdom that the US president is using the higher charges primarily as a threat designed to extract concessions from his trading partners. Or in other words, that his bark will be worse than his bite.

Trump certainly is using tariffs as a negotiating tactic to bring world leaders to their knees. But optimists are overlooking a second truth: the US president is also desperate for cash.

America’s public finances are shot
. The deficit is the highest since at least 1975 outside of a crisis period. Debt is on track to grow at double the rate of the economy in the decades ahead.

And against this backdrop, Trump has promised tax cuts that would cost in the region of $10 trillion (£7.9 trillion) over the next 10 years.

Experts warn that for Trump, tariffs are not only a means of geopolitical leverage but a key source of funds for his tax-cutting agenda. This means they will be here for the long run.

“He views them as a revenue-raiser and his team will use them to justify tax cuts,” says Michael Martins, founder of Overton Advisory and former US embassy political specialist.


And the impact of his focus?





Trump wants a weaker dollar but his tariff policy creates a stronger one..



But....

In the Canadian case - a strong USD would drop the price of Canadian commodities in the US (oil, gas, potash, lumber). It would also drop the price of Canadian labour making Canadian cars cheaper than US cars.

But...

Those cheaper commodities, resulting from the strong USD and weak CAD, would leave room for Trump to impose tariffs without raising the price to the US consumer. The stronger the USD to the CAD then the higher the tariff he can impose.

That then gives him room to play - once he has established a tariff revenue stream then he can start playing off foreigners wanting access to his market against each other while at the same time offering the prospect of more and better jobs to offset the higher cost of living resulting from the tariffs.

So, weak dollar vs strong dollar, low tariffs vs high tariffs - both of those are just two more levers he will leave in the hands of his successors to play with.
 
From Reuters:

Alcoa warns Trump's aluminum tariff could cost 100,000 US jobs

(Reuters) -Aluminum producer Alcoa said on Tuesday that U.S. President Donald Trump's plan to impose a tariff on aluminum imports could cost about 100,000 U.S. jobs and would itself not be enough to entice it to boost production in the country.

Trump earlier this month said he would impose a flat 25% tariff on aluminum imports "without exceptions or exemptions" in a bid to lift U.S. production of the metal used to make automobiles, cans and other products.
The tariff takes effect on March 4.

Pittsburgh-based Alcoa, which produces aluminum in Canada, Iceland, Australia and elsewhere, had trimmed its output in the United States in recent years partly due to electricity costs.

Bill Oplinger, Alcoa's CEO, told the BMO Global Metals and Mining Conference in Florida that the tariffs could cost about 20,000 U.S. aluminum industry jobs and further 80,000 jobs in sectors that support it.

"This is bad for the aluminum industry in the U.S. It's bad for American workers," said Oplinger, an engineer by training who became CEO in 2023, in webcast remarks.

U.S. data showed aluminum smelters produced just 670,000 metric tons of the metal last year, compared with 3.7 million in 2000. Plant closures in recent years, including in Kentucky and Missouri, have left the country largely reliant on imports.

The tariffs alone would not be enough to entice Alcoa to restart some of its shuttered U.S. facilities, the CEO said, adding that Trump officials have asked the company to do just that.
"It's very hard to make an investment decision, even on something like a restart, without knowing how long the tariffs will last," Oplinger said.

He also said that he has lobbied Trump officials for an exemption on Canadian aluminum imports.

Alcoa would consider boosting U.S. output if it had cheap supply of power, which its Icelandic operations enjoyed, Oplinger said. Aluminum smelting consumes large amounts of electricity.

Separately, Oplinger said he believed that any end to the conflict between Ukraine and Russia could see aluminum from Russia move into Europe.

Oplinger also said he believed there were opportunities for the global aluminum market to consolidate, without providing details.

Shares of Alcoa fell 2.6% to $34.10 in Tuesday morning trading.
But don't worry...the tariff free Russian aluminum will help save the US industry!
 
To cite David Krayden (who I know both professional and personally) is the height of folly.
I'm not citing him at all.

If I happen to scroll upon something that's related to a topic here, I just post the link so others can view the same clip & see it also
 
I'm not citing him at all.

If I happen to scroll upon something that's related to a topic here, I just post the link so others can view the same clip & see it also
We also don't allow drive by clip/article dumps without intelligent comment, yours unfortunately got missed and should have been deleted.

- Milnet.ca Staff
 
Shut down the pipeline going south for a couple of weeks and call it preventative maintenance.

See how they deal with it.

Or blackout the eastern seaboard for a day. Turn it back on for the night.

We're Canadians, we can say 'Sorry' with a straight face and get away with it.😉

Need to do a better job controlling our moose. They get away from us from time to time. ;)
 
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