Global Trade Patterns Will Forever Change

[errolanderson]

Jack Ma, Alibaba warned China yesterday to start preparing for a 20-year trade war . . . .

Please take as an opinion, but U.S. protectionism will now force global trade patterns to change for the long-term. Canada can no longer depend on the U.S. for our economic health. Trade agreements will continue to be extremely difficult to negotiate (including NAFTA). But no deal is better than a bad deal (IMO).

The U.S. has opened a Pandora's box. They did believe and touted 'trade wars are easy-to-win', well they are not. And for the U.S. to turn their back on the WTO is a huge mistake.

This is not even to mention: U.S. spending is up 21% year-over-year with public debt now approaching $22 trillion.

Will the current U.S. trade strategy actually make America Great Again?

[jazz]

Will the current U.S. trade strategy actually make America Great Again?

On the contrary, never has it been more important to align our economy with the US. Canada is not competitive in the world. We have no major trading relationships outside the US. We cant get our stuff to ports. Our cost structures are too high.

If you think the US are such bad bullies, try working with China.

This grandstanding is so wrong. It will ruin us. US will be the last man standing in this game and we better be by their side.

[hobbyfrmr]

On the contrary, never has it been more important to align our economy with the US. Canada is not competitive in the world. We have no major trading relationships outside the US. We cant get our stuff to ports. Our cost structures are too high.

If you think the US are such bad bullies, try working with China.

This grandstanding is so wrong. It will ruin us. US will be the last man standing in this game and we better be by their side.

Agreed. 100%

[jazz]

This ist just a trade war, its a real war. Trump is trying to tamp down chinas global ambitions which are being funded with american treaaure. If their GDP slips a few points, then millions will be out of work there and revolution likely to ensue. This is asymetrical warfare. Xui will have no choice but to devalue, or court more debt to keep that hamster wheel going.

US has high debt, but it has more than enough assets to cover it. Plus its the reserve currency.

[bucket]

Now if some of the wannabe pot smokers had thought this through we maybe wouldn't be in this spot ...would we?????

[blackpowder]

Chinese plan generations in advance.
They will laugh last.
Something I never thought of. Auto industry moving to Mexico. Quite possible under true free trade.
Even the right to work states.
Not sure how SM gonna make out.
Interesting times.
Our leader plays for participation badges. Should've stayed in school.

[littledoggie]

On the contrary, never has it been more important to align our economy with the US. Canada is not competitive in the world. We have no major trading relationships outside the US. We cant get our stuff to ports. Our cost structures are too high.

If you think the US are such bad bullies, try working with China.

This grandstanding is so wrong. It will ruin us. US will be the last man standing in this game and we better be by their side.

Agree. Wish there was a 'like' button.

[beaverdam]

blackpowder, I pointed that at the time Mexico and the USA said they have a deal. If cars are being imported into the USA, Trump doesn't care if they come from Canada or Mexico, if they're imports, they're imports. But maybe that's why Trump wanted higher wages in Mexico, and Trudeau didn't.
Trump was saying that if you want to import cars into the USA, you can't do it with dirt cheap labour, you have to pay your works more. Trudeau didn't want the Mexicans to get higher wages, because if they were kept low, he knew Trump wouldn't allow Mexican auto imports, hence preserving Canadian jobs.


Errol, at this point, No Trade Deal IS Worse than a Bad Trade Deal.

Especially if Justin and Freeland think a bad deal means no tranny rights, no additional special rights for natives, feminists, etc...


Jazz is right in pointing out that just like the prairies are landlocked, Canada, as far as neighbours go, is landlocked to the USA. Everything else we want to export will incur ocean freight,,,which will likely never stay as low as it currently is. It's no wonder 75% of our exports go to the USA

No Deal is a Very Bad Deal

[littledoggie]

I believe GEOGRAPHY is a determining factor in the fate of nations.

[ajl]

This ist just a trade war, its a real war. Trump is trying to tamp down chinas global ambitions which are being funded with american treaaure. If their GDP slips a few points, then millions will be out of work there and revolution likely to ensue. This is asymetrical warfare. Xui will have no choice but to devalue, or court more debt to keep that hamster wheel going.

US has high debt, but it has more than enough assets to cover it. Plus its the reserve currency.

Yup. The USA is the only game in town. Learn that the easy or hard way. Our call.

[errolanderson]

China may someday leapfrog the U.S. in technology, tariffs or no tariffs . . . .

The U.S. is unlikely to make a bilateral deal with Mexico work. No new NAFTA deal means the old NAFTA deal stays in-place. If Trump attacks Canada with auto tariffs, that also hammers the U.S. consumer at a time the economy is in a downturn. And as the U.S. nears a recession, the howls from within the Republican party itself and China tariffs will only intensify.

[bucket]

If you look at the republican party and Trumps advisors ....recession doesn't bother billionaires ...it is seen as a buying opportunity ....very similar to what happens in the farming community in western canada....guys say **** it and someone has their cheque book out the next day....even faster now with social media...

[jazz]

China may someday leapfrog the U.S. in technology, tariffs or no tariffs . . .

errol, you need to learn the truth about china. Just like those fake Louis Vutton bags, so is their entire economy. Its a copy cat fast tracked rip off economy. Whatever tech they have was developed by either intellectual property theft or by strong arming companies that moved overseas. And company that sets up shop in china from the west will get cheap labour, but china gets access to the tech. We have sold our future by doing this and trump was right to stop it.

China does the reverse too. They will bring capital to your country to exploit your resources, tie you up in debt and then use their own labour to supplant yours.

These guys are ruthless and they have lived by the softness of the globalists for 25 yrs now. Glad to see someone putting their foot down.

US imports from china are 10:1. No way in hell the US loses this fight. The math doesnt support it. The tarrifs have 10 times the impact in china as they do here.

[ajl]

Beat me to it jazz but you are absolutely correct. Don't bet on the wrong horse. China also has 40T in mostly USD denominated debt held by various arms of the communist party so it doesn't show up on the federal books but is nonetheless real. Sort of but not quite like adding Canadian provincial debt to the federal books in Canada. How do you think they had 10+% economic growth? They bought it with debt and built ghost cities and bridges to no where.

[grassfarmer]

I'm agreeing with you on this one Errol, China for the win! No way are they going to be outwitted by a dimwit like Trump.