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| Trump has announced 25 percent tariffs on Canadian goods |
American President Donald Trump has dropped the T-word -- tariffs -- on Canada starting today February 1. We will be slapped with 25 percent tariffs on Canadian goods going across the border to the US.
There was some confusion throughout the day as there was word that the tariffs wouldn't come into effect until March 1, but then Trump, through his press secretary said it would be tomorrow, without citing any details.
He claimed that Canada was responsible for illegal immigrants and drugs like fentanyl streaming into the US and this was how he would punish his northern neighbour.
Soon after the Canadian dollar sank to a five-year low of 68.85 cents to the US dollar.
The Canadian government has been scrambling to come up with some kind of response, which frankly should have been discussed as soon as Trump won the Republican nomination, or when he was elected in November.
Nevertheless, does Trump understand how interdependent the Canadian and US economies are when it comes to manufacturing, particularly cars? They are literally built back and forth, crossing the border six or seven times before one vehicle is completed.
Making a car 25 percent more expensive will lead to a drop in demand and workers losing jobs.
We buy more American food products, though they depend on Canadian crude oil.
It's just bad all round and economists have warned the economies for both countries are going to be hit hard.
Is this Trump's way of pushing Canada to become the 51st state? It's not for sale.
While it's hard to "buy Canadian" when many things are made elsewhere, Trump's actions have probably soured many Canadians' interest in traveling to the US, coupled with a weak dollar.
Although Trump is revelling in making Canada squirm, he will soon realise how 25 percent tariffs will impact the American economy...
Four years of complete chaos has already begun.
