The real problem is that Trump’s supporters don’t understand tariffs, and wouldn’t believe the explanation anyway because to them it just sounds like Orange Man Bad.
When the US imposes a tariff on Canada, importers of Canadian goods pay the tariff to the US government. To recover that cost they raise the prices they charge American customers. So Americans end up paying the tariff. The only damage it does to Canada is that the tariff could discourage US importers from buying certain goods from Canada if they can get them somewhere else without paying a tariff. That happens in some cases, but in others Canada is already the cheapest (or only) source of a high-demand item, so Americans will just pay the higher prices - the way they’re still paying jacked-up COVID prices for so many things, for example.
Millions of Americans, being too dumb or unwilling to grasp this, think these tariffs are Trump heroically saving them from the evils of foreigners who want to destroy their Freedom.
Ya. I watched the Doug Ford announcement, and he said parts can cross the Ontario border up to 8 times before making it into the vehicle or final product.
so $10 part -> $12.50 -> $15.625 -> $19.531 -> $24.414 -> $30.517 -> $38.146 -> $47.683 -> $59.60
So that $10 part from the first factory is now $59.60 and that’s before the fact that it probably increases in value at each step along the way to being refined into it’s final product.
Thats why he’s saying (as well as others) that they expect the factories on both sides to shut down within a couple weeks.
Edit: half of that if it’s a one way tariff where both sides didn’t put tariffs on the exact same items.
yeah, exactly. Complex manufacturing chains often ship things all over the place, if you’re crossing the border 2-3 times, that’s 2-3 times as many tariffs being charged. Which depending on what you’re doing, can be a lot of money.
The auto industry in particular is susceptible to this.
Combined with a strong dollar that’s a huge blow to U.S. agriculture and manufacturing. FYI U.S. Agriculture is in the worst overall depression of the past 50 years. The strong dollar has basically has given the entire industry a beating.
The real problem is that Trump’s supporters don’t understand tariffs, and wouldn’t believe the explanation anyway because to them it just sounds like Orange Man Bad.
When the US imposes a tariff on Canada, importers of Canadian goods pay the tariff to the US government. To recover that cost they raise the prices they charge American customers. So Americans end up paying the tariff. The only damage it does to Canada is that the tariff could discourage US importers from buying certain goods from Canada if they can get them somewhere else without paying a tariff. That happens in some cases, but in others Canada is already the cheapest (or only) source of a high-demand item, so Americans will just pay the higher prices - the way they’re still paying jacked-up COVID prices for so many things, for example.
Millions of Americans, being too dumb or unwilling to grasp this, think these tariffs are Trump heroically saving them from the evils of foreigners who want to destroy their Freedom.
Reports from people who know him, Trump is one of these people. He clearly doesn’t understand the process.
“I’ve been in the room when it’s been explained to him, and he doesn’t understand it, but he likes tariffs,” Bolton said.
not to mention any potential compound tariffs on complex goods likes automobiles for example.
Prices skyrocket immensely.
The housing market is only going to get more expensive, etc.
By compound tariffs, do you mean extra tariff fees due to repeated trips across the border in the manufacturing process?
Ya. I watched the Doug Ford announcement, and he said parts can cross the Ontario border up to 8 times before making it into the vehicle or final product.
so $10 part -> $12.50 -> $15.625 -> $19.531 -> $24.414 -> $30.517 -> $38.146 -> $47.683 -> $59.60
So that $10 part from the first factory is now $59.60 and that’s before the fact that it probably increases in value at each step along the way to being refined into it’s final product.
Thats why he’s saying (as well as others) that they expect the factories on both sides to shut down within a couple weeks.
Edit: half of that if it’s a one way tariff where both sides didn’t put tariffs on the exact same items.
yeah, exactly. Complex manufacturing chains often ship things all over the place, if you’re crossing the border 2-3 times, that’s 2-3 times as many tariffs being charged. Which depending on what you’re doing, can be a lot of money.
The auto industry in particular is susceptible to this.
The areas where they overwhelmingly voted for the orange dumbass are in for a shock. Here is a list of the products that canda has put tariffs on.
https://www.canada.ca/en/department-finance/news/2025/03/list-of-products-from-the-united-states-subject-to-25-per-cent-tariffs-effective-march-4-2025.html
Combined with a strong dollar that’s a huge blow to U.S. agriculture and manufacturing. FYI U.S. Agriculture is in the worst overall depression of the past 50 years. The strong dollar has basically has given the entire industry a beating.
Just wait until our first harvest season without immigrants!
A rapid increase in labor cost plus low prices. Now that’s a recipe for a fun party in bankruptcy court.
Just tell them it’s a 25% sales tax.