TRUMP THREATENS 100% TARIFF IF CANADA SIGNS DEAL WITH CHINA
- Michael Thervil
- 2 days ago
- 3 min read
Written by Michael Thervil
[Trump Canada deal China] After the Canadian Prime Minister's standing ovation at the World Economic Forum in Davos, Switzerland for not only revealing the true nature of America’s rules based international order and leading Canada’s economic pivot to India. American President Donald Trump has intensified his threats to impose a 100% tariff on Canadian goods, products, and services. Prime Minister Mark Carney announced that Canada would be looking to strengthen both diplomatic and economic relations with China due to China appearing to be both a more stable and reliable economic trading partner.
President Trump relayed applying a 100% tariff on all Canadian imports on his social media platform Truth Social earlier today. President Trump also stated on his Truth Social post that if Prime Minister Mark Carney:
"thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the United States, he is sorely mistaken."
President Trump followed up by saying:
"China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life.”
While Prime Minister Mark Carney has yet to directly respond to President Trump’s threats and rhetoric, he did state the following:
“At its best, the Canada-China relationship has created massive opportunities for both our peoples.”
It should be understood that Prime Minister Mark Carney formerly worked at Goldman Sachs and as the governor of the Bank of England; thus, it can be easily said that his background in banking may be the driving force as to why he is currently choosing to diversify and/or offset Canada's dependence on America in terms of commercial trade.
Geopolitical pundits are currently hedging that despite President Trump's threats of applying 100% tariffs on Canada, he will sign off on a deal with China. At the same time, it's being predicted that the application of President Trump’s retaliatory tariffs will produce sharp economic blowback on the American manufacturing and auto industry which is currently in a bear market. One of the trademarks of Canada inking a deal with China is that Canada will be slashing tariffs on Chinese Electric Vehicles (EV’s) to zero.
Another American sector that will be hit exceptionally hard if President Trump makes good on his threats to hit Canada with 100% tariff's, America's energy sector will also suffer as well. The reason for this is because Canada currently supplies over 6 million American homes with a vast concentration of Americans that rely on Canadian energy in New York, New England, Maine, Vermont, Delaware, Michigan, Wisconsin, and Minnesota to name a few.
Outside of Canada providing a significant amount of electrical energy to America, Canada also exports well over 60% of crude oil and well over 90% of natural gas to America as well.
OUR POSITION AT VEDA WORLD NEWS
The two things that attract Canada to both India and China; and that’s the fact that India is hungry for business due to Prime Minister Narendra Modi’s position of putting India first and China's uncanny ability to remain a reliable and stable trading partner despite problematic geopolitical riffs that adversely affects international trade. We predict that Adam Smith's notion of the hidden hand of the free market will turn in the favor of Canada as it sharply pivots towards India and China.
We are also predicting that America, due to the actions of the Trump Administration will continue to isolate itself on the world stage and will effectively “shoot itself in the foot” as the application of retaliatory tariffs on Canada will increase the cost of the building and selling of homes and commercial properties in America as America imports an estimated 30% of it's lumber from Canada which registers to an estimated $11 billion.
In terms of agriculture, farmers are expected to also suffer because if the Trump Administration applies a 100% tariff on Canadian goods, Canada will most likely either increase their tariffs on American agricultural products and/or purchase significantly less agricultural products from American agriculturalists. The agricultural exports to Canada are worth an estimated $28 billion and reduction in revenue while farmers of all kinds in America are reporting record lows will issue a further damaging blow to the American agricultural market.
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