Trump Levies Tariffs which Trudeau says is "dumb"

Trump did not mention Canada as the "51st state" tonight

There are confusing signals coming from the Trump administration about the 25 percent tariffs levied on Canada and Mexico this morning.

Before the US President Trump addressed Congress, Commerce Secretary Howard Lutnick suggested there could be a reduction on the tariffs if something is worked out -- as early as tomorrow.

Seriously? Why did we have to go through all of this now then? Will Trump say that Canada and Mexico have complied to his wishes on how they have dealt with the fentanyl crisis and so tariffs will be decreased?

Trudeau described Trump's move as "dumb"

However, when Trump made his record-long speech this evening, he did not mention walking back on his tariff threat at all, though he did not reference Canada as the 51st state.

It might be because Canadian Prime Minister Justin Trudeau gave a strong speech this morning and spoke directly to "one specific American":

"Donald, in the over eight years you and I have worked together, we've done big things. We signed a historic deal that has created record jobs and growth in both of our countries.

"We've done big things together on the world stage, as Canada and the US have done together for decades, for generations.

"And now we should be working together to ensure even greater prosperity for North Americans in a very uncertain and challenging world.

"Now, it's not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you're a very smart guy, this is a very dumb thing to do."

Canadians are united in buying Canadian goods

Did that bruise someone's super inflated ego?

Trump only mentioned Canada four times, and nothing about annexing it or about Trudeau being a "governor". He did threaten Greenland though, and promised to take back the Panama Canal.

In fact Hong Kong's CK Hutchison, whose Hutchison Port Group owns a 90 percent stake of two Panama ports is looking to offload it, by selling an 80 percent stake in Hutchison Port Group in a bid to assuage Trump's ire.

It's a surprise announcement, but perhaps CK Hutchison's senior advisor Li Ka-shing doesn't want the attention...

But back to Canada. In his speech, Trudeau suggested Trump is trying to weaken Canada's economy so much that he can overtake it, and Trudeau's theory is probably correct.

While tariffs is Trump's favourite word, he seems to have no clue how this will impact not only Canada's economy, but the American one too.

A lot of crude oil, electricity, lumber, cars, and fertilizer goes to the US. Even fuel for military jets come from Canada. 

The geopolitical order has been turned upside down and now everyone else has to chart a new way forward. Canada needs to break down inter-provincial barriers as soon as possible to stimulate the domestic economy and look elsewhere for new markets, which Trudeau already began doing in London and Paris.

The United States is not the leader of the free world anymore. Trump would rather align with authoritarian leader Vladimir Putin. 

Perhaps some American states would like to join Canada instead?