Why? Not even Trump knows.
What to do about it? Like any toddler throwing a tantrum: ignore it.
Because it’s not that simple: start making economic policy that does not depend on a stable and rational USA.
Time for Canada to take example from Australia and end the corporate welfare of the auto sector in Ontario. Invest in shipping expansion left and right.
I want 2 small Canadian owned and operated companies. One that makes evs for the civilian market and one that makes armoured for military and commercial markets.
Throw in groceries and telecoms and I’m in.
The tactic is to buy time until Trump is gone.
I don’t want to return to normal relation with the usa after trump is out
That’s not much of a tactic. We simply can’t afford another two and a half years of this. And there’s a very real chance that the republicans will win again and no reason to believe that the next republican will be any nicer to us. I simply not a winning strategy
If you think that waiting him out is expensive, I don’t think you realize the extent of the cost of giving in to someone like him who will come back month after month with new demands until we don’t have a country anymore.
He’s doing that anyway. That doesn’t change. That’s what happens when you cave to him every time he asks for something like Carney has.
But he does tend to honor deals. He never ripped up kousma even though he slapped millions of other tariffs on us. CUSMA is still in force.
So no matter what happens if you have a deal the business community takes it as a certain degree of certainty and is willing to invest based on that. I guarantee you it is Infinitely more expensive to have no deal and no investments in Canada. It’s not even a question we simply couldn’t possibly survive it. We would become a third world country if investment keeps fleeing the way it has been for the last five quarters
I don’t know how much analysis this needs. He wants to try and get a deal with carney on terms that work for him and he’s threatening a new killer option if carney doesn’t give him what he wants. He wants to take the rest of the Canadian Auto sector and he wants to be able to dump dairy products into Canada. Until carney agrees to that there’s even going to be any negotiations and trump is going to hold this over Canada’s head until he figures he’s got to win
And the problem is every minute that this is in play guarantees no investment in Canada. Nobody’s putting a nickel into Canada until they find out what’s going on
