Not a terrible plan.
Not convinced he can convince the current government occupants south of us though.
CAN-USA Tariff Strife (split from various pol threads)
- Thread starter Remius
- Start date
Not a terrible plan.
Not convinced he can convince the current government occupants south of us though.
So, the “what’s in it for America?” would be restoring a cross border supply chain with no trade barriers so that producers can search for the best deal on inputs and parts… But that’s explicitly what Trump has shrugged and walk away from, picking mercantilism instead. Why does Poilievre think he’ll succesfully convince the U.S. on what amounts to takebacksies?
Trump wants the manufacturing entirely in the U.S.. He’s been explicit on that, as has his trade rep. The trade rep has said we will have tariffs. I don’t understand how this is anything more than just wishful thinking by Poilievre.
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The most from what I can understand of it consists of 2 parts -
1) Go back to the 1965 Auto Pact, for every car produced in Canada, a car produced in the US or Mexico can be sold in Canada tariff free
2) Every car produced in Canada can be produced here with no GST charged, so a 5% saving on the tax across Canada.
One thing to remember is that Canadians have been overwhelmingly buying less and less and less vehicles produced by the Big 3. This steady decline has been a 35+yrs process. It can only be reversed by either our non Big 3 options shrinking or the Big 3 massively increase their quality and/or fuel mileage.
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- Points
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What Trump completely and utterly fails to understand is that his solution would crush the Big 3 in Canada. Their sales would collapse here. For certain some here will continue to buy Ford 150 or GM Silverados but Toyota could easily expand their production here to produce Tacomas in Woodstock, along with Corollas and Camrys.
Why would Canada not put a tariff on every car coming into Canada from the US if the Big 3 no longer produce cars here?
Canada is by far the Big 3’s largest export market and they could easily lose it, lose 500k car sales a year.
