Tariff question

[lew]

This is NOT meant as a political question but I'm missing something on tariffs.

The U.S. is imposing tariffs on Canada so when we order any of those products WE pay the price.

Canada is gonna put reciprocal tariffs on the U.S. but it seems when they order any of those products WE are gonna pay for those too.

What am I missing here ?

[glen]

Sorry I can’t answer that question.  
I’m in a wait and see situation.
They probably haven’t figured out the details yet.  

[BITEME]

https://financialpost.com/news/trump-tariffs-canada-what-you-need-to-know
 

hope this helps Lew

[glen]

“Under Trump’s plan, all imports from Canada and Mexico will face a 25 per cent tariff, with the exception of a 10 per cent levy on Canadian energy. The move, Trump says, will remain in effect until both countries crack down on the flow of deadly fentanyl into the U.S.”

ok so he wants us to do what we should have been doing and then there is no tariffs. 

[lew]

3 hours ago, BITEME said:

https://financialpost.com/news/trump-tariffs-canada-what-you-need-to-know
 

hope this helps Lew

Thanks Pete but that still doesn't explain why Canadians have to pay to import things FROM the States plus pay to export things TO the States. Why are we paying both ways ?

[Terry]

The tariffs trump Imposed is on products we send to the USA , the importer in the USA pays the tariffs to the USA government who will either pay and pass the cost on to the consumers or more likely will buy locally or from a country without tariffs

we will pay tariffs on stuff we import because Canada is going to have dollar for dollar tariffs back with Canadians will pay to the Canadian government from the importer who will charge the 25% to consumers in canada

[AKRISONER]

Hey Lew, Hopefully I can clear this up for you. I wont provide my opinion in order to keep this thread open lol.

But to put it in plain language

Trump imposes 25% tarrif on Canadian lumber entering the united states, the American purchaser of the lumber pays a 25% tarrif on the lumber. The money is collected by the US government. 

Canada imposes a retalitory tarrif on american goods a boat for example, the purchaser (your local boat dealer) pays a 25% tarrif on the boat here in canada that is collected by the canadian government. That cost would be passed down by the boat dealer to you or me when we go to buy a shiny new boat.

So contrary to your understanding, canada does not pay both ways. In fact trump has been somewhat succesful in confusing americans into believing that by imposing these tarrifs, countries like canada and china will pay for them. This is not the case at all. The entire concept of a tarrif is to promote manufacturing within your own country by penalizing anyone that purchases products from a foreign manufacturer or supplier.

The most recent tariff on canadian steel is an easy one...by imposing a 25% tarrif on canadian steel the US government is incentivizing any american that needs to purchase steel, to purchase it from american sources. This should boost the economy in a place like Pennsylvania that have massive steel manufacturing.

Part of me even questions if Trump understood what he was doing when he initially brought up the concept, hence the continued pushing back of the imposing date.

You may ask yourself then, why is everyone making such a stink about the tariffs here in Canada if its the americans that are going to pay them. The answer is that the Canadian Economy relies heavily on selling its products such as oil, lumber, potash, uranium, etc etc to the united states. If canadian resources and products are hit with a 25% tarif Americans will immediately turn to purchasing these products from other markets where tarifs are not imposed, and thus this will severely damage the canadian economy. 

One blatant oversight by the Trump administration was the idea of tarffing canadian oil. What they failed to realize is that Canada currently discounts oil by upwards of $17 a barrel to the united states. By imposing a tarrif on canadian oil, Canadian oil companies would essentially be forced to begin marketing their oil elsewhere while americans would be stuck going to the open market. For areas of the United States that are heavily reliant on Canadian oil due to their distance from the american coast line such as the american midwest, transportation costs to move oil from foreign sources would skyrocket the price. These areas of the states are heavily reliant on oil produced in canada and moved down via pipeline saving significant transportation costs. If the American midwest was forced to pay a 25% tarrif, they are then looking at 1. paying 25% more immediately, plus most likely needing to go and purchase oil on the open market which they would then need to transport to the middle of the continent. I dont think theres much appetite for americans to pay what 40? 50%? more for their oil.

This is the real catch in all of this. Trump can threaten tariffs etc all he wants, but at the end of the day the USA does not have/has not enough resources to sustain itself. It doesnt have the oil reserves, lumber, potash, uranium, etc etc to provide itself. It will always be reliant on countries like canada to provide those resources to it. Thats what makes this all a little nerve wracking too while Trump keeps bringing up making canada its 51st state...we just saw what Russia decided to do when it needed some resources...could USA do the same? Youd hope not.

Edited 10 hours ago by AKRISONER

[lew]

36 minutes ago, AKRISONER said:

 

Trump imposes 25% tarrif on Canadian lumber entering the united states, the American purchaser of the lumber pays a 25% tarrif on the lumber. The money is collected by the US government. 

Canada imposes a retalitory tarrif on american goods a boat for example, the purchaser (your local boat dealer) pays a 25% tarrif on the boat here in canada that is collected by the canadian government. That cost would be passed down by the boat dealer to you or me when we go to buy a shiny new boat.

 

I must be getting dopey(er) in my old age but that's the part I don't understand.

The 1st. part is easy, Trump makes his people pay more hoping they'll start buying from somewhere other than Canada.

But how does it help Canadians if we impose tariffs on American products if it's going to cost us all more. Is the thinking that we'll start buying those boats from somewhere other than the States ??

[Spiel]

14 minutes ago, lew said:

But how does it help Canadians if we impose tariffs on American products if it's going to cost us all more. Is the thinking that we'll start buying those boats from somewhere other than the States ??

It doesn't help us Lew, it's just chest puffing rhetorical nonsense from self important fools hoping to buy votes.

[lew]

3 minutes ago, Spiel said:

It doesn't help us Lew, it's just chest puffing rhetorical nonsense from self important fools hoping to buy votes.

hahaha

[AKRISONER]

27 minutes ago, lew said:

I must be getting dopey(er) in my old age but that's the part I don't understand.

The 1st. part is easy, Trump makes his people pay more hoping they'll start buying from somewhere other than Canada.

But how does it help Canadians if we impose tariffs on American products if it's going to cost us all more. Is the thinking that we'll start buying those boats from somewhere other than the States ??

We don’t know what they will look like, the idea will most likely be to specifically target some American products where we can buy them elsewhere…like China…

[lew]

OK, thanks to all who replied, I guess we'll learn something tomorrow.