Written by Michael Thervil
"If war is what the US wants, be it a tariff war, a trade war or any other type of war, we're ready to fight till the end. The fentanyl issue is a flimsy excuse to raise US tariffs on Chinese imports. Intimidation does not scare us. Bullying does not work on us. Pressuring, coercion or threats are not the right way of dealing with China.” - Chinese Foreign Ministry
In the world of Geopolitics, the heat is on in a multipolar war consisting of America, China, Mexico, and Canada. With the Trump Administration cranking hell’s oven up to 450 degrees; Canada is ready to escalate that temperature to 500 degrees. When it comes to China, it's simply waiting to crank the temperature up to a broil. This is the best metaphor for what's going on concerning the trade war that is currently happening. In a shocking stance of bold posturing, Canada has stated that it’s not only ready to retaliate against the Trump Administration's 25% tariffs which started today, it's already began to retaliate not only with its equal 25% tariffs aimed towards the United States, but promised to increase their tariffs towards America in the next 2-3 if the Trump Administration refuses to reverse its position on placing tariffs towards Canadian goods and products.
Currently the Canadian Province of nova scotia has embarked on taking additional steps towards retaliating on the Trump Administration by removing all and we do mean all American made alcohol from their store shelves. Other Canadian provinces are considering following suit. If that happens, that could strike a devastating blow to American alcohol manufacturers. In turn, as you well guessed, that would mean Americans would have to end up not only paying more for alcoholic beverages, but this also means that more American workers will be laid off. On top of that, Nova Scotia is actively seeking to cancel all contracts American businesses are bidding on as well as blackballing all American business from outright bidding on contracts in their entirety. On the extreme side of things, Canada could shut off electricity to 3 American states if it so chooses to. Our prediction here at VEDA Communications is that America will see several small to midsize alcohol producing manufactures close their doors.
While many praise Canada and China for swiftly standing their ground to American tariffs and applying their own tariffs towards America; many people believe that Mexican President Claudia Sheinbaum is the weak link when it comes to retaliating against America's tariffs towards Mexico. It was reported to us that Mexican President Claudia Sheinbaum is planning to meet with American President Trump this week. However, it's currently the middle of the week and no talks between America and Mexico has been reported. Many predict that President Claudia Sheinbaum will be politically manhandled by President Trump.
While it’s true that Mexico exports roughly 80% of their products and goods to America, they stand to lose roughly $800 billion in trade if they can’t find a solution. But for Mexico there is a solution – seek to join BRICS, ban the exportation of Mexican goods into America, diversify its exportation of Mexican goods to other countries, ban the use of the American dollar in their country, and flood the American market with fentanyl and other synthetic narcotics. If push comes to shove and Mexico needs to augment its military defense should America become militaristic in approach – they should partner their existing military with the cartels.
When it comes to China, the dragon seems to be yawning more than raging a firestorm towards American tariffs on its goods and products. What we mean by this is that while American President Trump has fired all cylinders towards China during its trade war for a total of $525 billion in tariffs toward China; China knows that it is the world factory and nothing on this earth can move without it being significantly involved. Currently China has only imposed $22 billion in tariffs towards American goods and products, it understands that it has a whopping rough 90% more in tariffs it could impose via escalation on America goods and products. In short, it can be said that China is stockpiling its “economic ammunition” as it's ready for the long-haul fight in the trade war.
In fact, China has already imposed a 15% tariff on American chicken wheat corn cotton. In addition to that, China has imposed a 10% tariff on American beef vegetable, pork and dairy, soybean, and sorghum. Those tariffs alone will cost the American government more than $22 billion in losses. As the trade war escalates, we predict that you will see wild cards being played that will drastically shift the trajectory of this multipolar trade war.
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