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Trudeau hits back at Trump by announcing massive tariffs on the United States: ‘Canada will not let this unjustified decision go unanswered’ (www.mediaite.com)

submitted 19 hours ago* (last edited 19 hours ago) by [email protected] to c/[email protected]

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Summary

Canadian Prime Minister Justin Trudeau announced retaliatory tariffs after Donald Trump confirmed 25% tariffs on Canadian goods and 10% on energy, set to take effect at 12:01 a.m. Tuesday.

Trump justified the move by linking it to fentanyl smuggling concerns.

Trudeau called the tariffs "unjustified" and imposed 25% tariffs on $155 billion in U.S. goods, with $30 billion effective immediately and the rest in 21 days.

He warned of price hikes and job losses in the U.S., arguing the move violates Trump’s own trade agreement from his last term.

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[–] [email protected] 4 points 6 hours ago

Imagine widgets are $10 in country A, but a company in country B can make and sell them for $8. Buyers are likely to buy the cheapest (all else being equal). A 100% tariff would turn $8 into $16. Company B still only gets $8, but they now look far more expensive to customers in country A.

They are designed to price out external competitors to local companies. This can be used to protect industries. Steel is a good example. China can make steel far cheaper than the rest of the world. However, steel plants take a long time to build and get producing. You generally don't want a potential rival to have control of the materials you need for war production.

Another legit use is to account for local regulations. If you require local companies to pay in a carbon credit system, an external company could undercut them from abroad. A tariff would help level the playing field.

None of these apply to what trump is doing. He's swinging a claymore mine around like a toy hammer. It causes huge damage to all involved.