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I apologize. You see, you were posting as if you either did not finish high school and/or slept through economics class, and I got a little confused. My bad, bruh.
Now, do you have an example like I asked for, that this silly tariff idea has any historic basis in being effective at doing what they tell the voters they're pandering to that it would do? I'm still waiting on that one.
You have proven not worth the effort because of your rudeness. And I am not a "bruh" either.
You don't find it strange that Canada is importing almost 3 times as much as it exports to China which has close to 40 times more people? Should it not be the other way around - there are 1 billion 400 million customers in China versus 36 million in Canada and therefore Canadian exports to China should be much larger?
Canada has been in exploratory talks with China about a free trade agreement for at least a year. It’s something I’ve not been happy about. I hope Trump’s actions won’t push us more in that direction.
You don't find it strange that Canada is importing almost 3 times as much as it exports to China which has close to 40 times more people? Should it not be the other way around - there are 1 billion 400 million customers in China versus 36 million in Canada and therefore Canadian exports to China should be much larger?
Now look at your quote, that is EXACTLY the problem. And if one country is supporting its aluminum sector and the other does not, what is going to happen long term?
But like I said earlier, this is probably NOT just about aluminum. Aluminum is used to make other products such as in the aerospace, energy and defense industries.
Actually ... I think we, maybe inadvertently ... ended up someplace interesting.
We can discuss the issue on a macro level (like you did) with trade imbalances and their consequences. Totally relevant for national impact. But I was confused (sort of, for the post you were responding to referred to a possible new Chinese customer) ...
I replied on the micro level, saying almost certainly not given Chinese current overcapacity to smelt aluminum.
Of course, the two frameworks are inextricably linked, even ending up at same general conclusion for the world aluminum industry / and a potential Canadian sale - as you point out.
BUT how you make trade decisions on a macro level (to correct trade imbalances) that negatively impact firms on a micro level (disruption for individual companies, downstream industries) becomes a problem. It's multi-level, with the macro being made of multiple individual transactions and company relationships.
And why there's no easy solution.
Pre-apologize for any lack of clarity ... my bad ...
Canada has been in exploratory talks with China about a free trade agreement for at least a year. It’s something I’ve not been happy about. I hope Trump’s actions won’t push us more in that direction.
Sadly, it is a loosing proposition. At least for now.
Perhaps someday day in the long run, maybe when wages, environmental and working standards are more equal, property and intellectual rights are respected and all countries actually really believe in free and fair trade instead of using it as a window dressing, I think we will have real free trade.
For now Canada should want to trade with every nation but it needs to understand that some nations will want to take advantage of free trade so it needs also to look out for its best interests.
I don't think Canada or for the USA for that matter, wants a hallowed out economy where he export food, lumber and coal to the leader country while in turn we import the value added manufactured goods. It is almost like we are becoming colonies again.
You're missing the point. The country doesn't pay tariffs. YOU do. As the end user.
What are the excessive tariff rates on US steel and aluminum that every other nation is charging? I know Canada is being hard on Wisconsin farmers right now, but that's because the US has an illegal tariff on softwood lumber. Both the US Commerce dept. and WTO have said it's illegal, but it's implemented none the less. In return, Canada is protecting their dairy farmers. Trade wars are an eye for an eye untileveryone is blind.
I would say the Clinton administration deserves a fair part of the blame because by then it should have been obvious that there was some serious shortcoming to international trade. And large parts of America were not doing as well as others. Some of these shortcomings have still not been addressed to this day such as when countries "cheat" in ways like undervaluing their currency.
But in defense of Clinton, the 1990s were also a time of extreme optimism for the future. The economy was booming, the Berlin Wall was down, Boris Yeltsin was President of Russia and some talking heads were talking about "the end of history". Democracy and western values had won and were the wave of the future. All that had to be done was to bring countries like China and Russia to the table and they would adopt our values.
I was in my 20s back then but even I knew that talk "the end of history" was farfetched. That the idea that all nations would all sit around the campfire, hug each other and sing songs was unrealistic. As long as their is money there will be greed, as long as their is power there will be those who seek power. Some would always try to take advantage of others, especially the major nations, including sometimes the USA.
Good international relations is not a given, its needs to be nourished, managed and maintained.
Good post. Trade decisions are made against the backdrop of their time with inadvertent consequences not foreseen. Sometimes there is no equalizing the advantages trade provides some but not all population segments (within a country) with a role for governmental support.
Earlier I took the time to type out a very long post to someone asking about alternatives to flat out trade war ... not that my words had any particular validity but for the length to demonstrate that this issue deserves thought and multi-faceted approaches.
No wonder is it that someone of many words is put off by seemingly impulsive executive decision-making and tweets?
I could make a case that the USD is overvalued for its status as the global reserve currency, and its true value is what we'll see after we're done telling the international trade community to kick rocks because "MAGA" and the USD stops being the global reserve currency.
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