Two Interesting article on CBC..
D.Trump about Canadian raw materials.
Some want to extend an olive branch, while others want to fight back.
Canadian politicians of how to mitigate against Trump’s tariffs.
Retaliations .. sure; negotiations .. why not .. ; scrapping of inter provincial trade barriers .. it’s a shame that we still have them…
I like all of those BUT what I dislike is, that all of them, including J.Trudeau, are talking about Canada as the reliable and premium source of raw materials for US. This is exactly the trap Canada have been going into for many years , probably, thinking that being the primary supplier for US manufacturing is a good and reliable source of income for generations and US is our friend “with benefits”.
BUT it is not ! The same as we should not too !
What D.Trump is proving to us now that manufacturer can easily press its supplier disregarding of how loyal it is if he is observing some better sources of what he needs and then bulling supplier to become incapable of establishing its own prices .. 51-st state probably will not.
Is such view on Canada from the southern boarder something new? For example, about seven years I heard very similar remark from one of my former classmate who teenager had emigrated with his parents to US from USSR in the mid of 1980-th. Unexpectedly decades after we have got a chance to talk and when he has leaned that I’m leaving in Canada, he has said .. “a-a-a Canada – our cold and poor province”.. It was very surprisingly to hear but it didn’t sound like just a joke.
Greenland is another target of Trump’s noisy “bla bla bla” that Denmark should give it up to US in a sake of “protection of democracy” .. but why not for the same sake to UK, Canada, Sweden, France, Germany .. why US. I think that it should be a waking point for Denmark and Greenland to get rid of US military as quick as possible not repeating the same mistake as Ukraine had done allowing Russian military base in Crimea on the promise of cheap oil and gas but instead received a stab in the back in 2014 from “anonymous green men” speaking good Russian language. There is no reason to wait for the “anonymous white men” with Texas accent.
And, just for my curiosity , from whom he would like to defend the democracy – from his good friend “vova putin” or from some other good friends?
BUT, at the same time, all those Trump’s outcries .. tariffs .. tariffs (piasters..piasters) sound like a vigorous desire for the cheap raw materials which he believes US can process into goods which can be sold even at the existing prices to the material’s suppliers resolving trade balance in US favor. Economically cheaper raw materials allow higher labor cost’s portion while keeping the total production cost and margin at least the same. Increased labor part vs. materials means that you may pay moderate wages in domestic production. Through that he is planning to achieve several goals simultaneously – lower unemployment, better income for his “fellow Americans” , better consumption, more believers in his “make America great again”. Smart guys !
But for our prosperity we probably should pursue similar agenda too BUT using OUR raw materials. Why not allow Americans to cut their forests, mine their minerals from their land, drill their land as much as they want.
Some time ago I was driving through Kurt Cobain’s hometown of Aberdeen, WA. Really depressing place full of trash cars and houses; my preference was not to stop there and pass it as quick as possible. Maybe under Trump they intensify forest cutting, restore they sawmills and make “Aberdeen great again”. Probably you can find “a lot” of such “Aberdeen”‘s across US.
Why should we deprive their efforts by selling them our lumber, grain, meat and oil?
Why don’t we do something more useful and valuable from our lumber, grain, meat and oil ourselves finding new clients within European Union, Commonwealth and around the globe?
Why do we really need those Shell and Esso selling on our land petroleum refined from our oil? Why we cannot refine our oil ourselves and sell petroleum mostly through Canadian owned operators? All US ones should be under tariffs and increased taxation; why not if we are talking about tariffs at a full scale now?
Why don’t we define our priorities in developing manufacturing and sell semi-finished and finished products at better margins transforming ourselves from US raw material appendage to an industrial world leader? So, if US guys need our aluminium they should get not aluminium but details from aluminium at the price cheaper than if they produce it inside US. And the same with the products from our grain, meat and oil.
Yes, it is more complicated from commercial point of view. Yes, it requires investments into automation to reduce labor costs to compete with Asia in this .. and a lot of other “yes,..” ; BUT if we don’t set up such goals today we may finally end up as 51-st state.
Let’s stop pouring our money into such things like 200$ rebate presents .. very sweet, I’ve got it too. BUT I prefer those money would have been poured into developing of the Canadian cloud data center allowing Canadian companies to keep their IT systems there instead of on Amazon, Google, IBM, Oracle and Microsoft.
Actually, I’m starting thinking that maybe it’s not bad at all that America has finally delivered those Trump+Musk twins waking us up from sweet dreams on American’s lullabies.