So, what came first - the U.S. tariffs, Canada's retaliatory tariffs or the U.S. reciprocal tariffs?

Key points:

• Impact of Trump’s tariffs on Canada’s economy: The imposition of 25 percent tariffs on Canadian exports to the U.S. is expected to have severe economic consequences, including a potential collapse of the Canadian dollar, inflation, and increased costs for imported goods. Ian Lee warns that this could lead to a currency crisis, similar to those seen in countries like Argentina and Russia, where central banks had to raise interest rates dramatically to stabilize their economies.
• Reciprocal tariffs will harm Canadians: The Canadian government’s plan to impose $150 billion in reciprocal tariffs on U.S. goods is criticized as a “tax on the Canadian people.” Lee argues that these tariffs will increase the cost of everyday goods, reduce Canadians’ standard of living, and exacerbate the economic pain caused by Trump’s tariffs, rather than alleviating it.
• Structural economic challenges and long-term risks: Lee emphasizes that Canada’s economic problems are structural, not cyclical, and cannot be solved by simply pumping money into the economy. He points to decades of protectionist policies, subsidies, and regulations that have stifled competition and innovation. Without significant structural reforms, Canada risks sliding into economic decline, potentially losing its status as a high-income country and slipping into “genteel poverty.”^[1]

With that said, Mexico wasn’t implementing their retaliatory tariffs until Sunday, but Canada (and I could say something quite inappropriate right now, but I won’t) jumped, prematurely and immediately, on the only thing they seem to have in their tool kit – retaliatory tariffs.

Presently there are no tariffs on Canada by the U.S. – let that sink in…

Just a couple of days ago, Trump waived the tariffs for Mexico and Canada until the “reciprocal tariffs” come into play on April 2. He said April 2 was going to be a “great day for America.” Now the pesky questions start…

The U.S. tariffs supposedly started on March 4.

March 4 Canada jumped, prematurely and immediately, to its retaliatory tariffs, boasting some $30 Billion dollars worth now and another $125 Billion, for its second wave of retaliatory tariffs.

Then on March 6 Trump waived the tariffs until April 2, excepting steel and aluminum.

Canada has decided to keep their retaliatory tariffs in place until, as many from governments are saying, the threats of tariffs are removed (a threat is not a tariff – it is merely a threat). Premier Ford has stated that Ontario will also be implementing a 25% tariff on the electricity Ontario is sending to Minnesota, New York and Michigan. He can say it’s a surcharge but it’s a tariff…just playing with words.

So, presently there are no tariffs on Canada by the U.S. – let that sink in…

Trump has implemented an Order for April 2, that is a “reciprocal tariff,” meaning that whatever the tariff another country is charging the U.S. is what the U.S. is going to implement on the country that has a tariff against the U.S.

Oh, what geniuses’ we have in Ottawa…do ya think?

Technically, if Canada keeps its retaliatory tariffs Trump and the U.S. will be the victim – not the aggressor, because he will only be responding to the tariffs Canada has implemented against the U.S. Enter the tin-fiddle and watch the Liberals play…

With all of that, though, this government has known since last November that this game was afoot and they only started to do, the only thing they have in their tool kit, in January. Where are any plans for diversifying our economy; where are the shovels in the ground to support the Canadian steel, aluminum or forestry industries; where are houses being built; where are the plans for agriculture or even the everyday Canadian? Sure, they finally announced the, purchasing of your votes, purported plan to subsidize wages and the like, with “work sharing” and E.I. – but what have they done for all of these workers and businesses? All we’ve heard for the past month is “Trump’s tariffs will harm both the U.S. and Canadian economies” and all this government has done is pound its chest telling Canadians they are implementing retaliatory tariffs, that only harm Canadians more?

When April 2 comes along, we should be prepared for Trump to come out with the statement that it is Canada that has implemented a trade war against the U.S. and he is only implementing reciprocal tariffs in defence of the U.S. and Americans…

(tongue in cheek) Oh, what geniuses’ we have in Ottawa…do ya think?

Now I could be all wrong on this, but I was in agreement with Ian Lee before I even heard what he was saying…we’ll just have to wait and see

Until next time…