Just in case it isn’t clear I don’t support Trump nor the tariffs.

I voted against Trump and I hate him with a vengeance. I’m discussing the geopolitical and economic context of the tariffs and the dynamic between US and Canada. I was surprised when I started doing research about this recently just how reliant in the US Canada truly is. The numbers were shocking to me. Likewise with Mexico. For some reasons the news doesn’t really cover these details.

There really is no world where the US is not Canada’s largest trade partner. It doesn’t matter what government is in power. No amount if federal unemployment would cover a quarter of your economy vanishing overnight.

And on the topic of a united Canada- https://www160.statcan.gc.ca/good-governance-saine-gouvernance/institutions-eng.htm

Public faith in federal institutions is at an all time low… just like the US. Right wing populism is on the rise… just like the US. Canada is a lot closer to the US both culturally and politically than any European country. This should be intuitive- both are cut from the same cloth. British settler colonial societies.

And Canada is starting to fall victim to the same style of right-wing populism we are seeing in the US (Trump), Latin America (Brazil/Bolsonaro, Argentina/Milei), and Europe (UK/Brexit, Germany/AfD, Italy/FdI, France/Le Penn, Sweden/Dems) etc.

Don’t let some vague sense of national pride blind you from seeing the truth for what it is. Confront the truth head on even if it is uncomfortable.

All countries are sovereign but some countries are more sovereign than others. If Canada’s priority was protecting sovereignty then they would not be in this position to begin with.

It’s something that has been decades in the making. It will take decades to reverse course. It isn’t going to meaningfully change in the upcoming 5-10 years.

You say Canadians are ready to “go without” but we’re talking about millions of people losing their jobs. A historic spike in poverty. Collapse of many industries. No sane leadership would ever cut off trade with America. National pride doesn’t feed a family.

Long term, sure, maybe there will be a realignment. I doubt it, but it’s possible. The near future is a chaotic one where Canada and Mexico are going to need the economic value from America. We’re headed for troubled times globally.

Yes, they are. There will be no meaningful response because they have no leverage. Any meaningful change from status quo would mean an immediate economic crisis.

Ignore what they say on camera because they are speaking to their domestic audience.

Right now, Canada has placed a 25% tariff on $30B worth of imports. That’s 7% of US imports. Whereas Trump has placed 25% on everything that Canada exports to the US.

And 80% of Canadian exports go directly to the US.

So just for reference.

Canada retaliatory tariff -> $30B which represents less than 1% of total US exports

Trump’s tariffs -> ~$550B which represents nearly 80% of total Canadian exports

Ignore the rhetoric, look at the numbers. Canada and Mexico have no choice. They signed their economic autonomy away a long time ago. It’s sort of like when Greece went through their debt crisis and couldn’t do jack shit because they signed away their autonomy to Brussels (and really Germany).

There are trade-offs to every decision. Canada got easy access to the American market and a nice way to exploit their natural resources. But it also gives Washington an absurd amount of leverage over them.

Mexico is even more screwed.

Canada - America trade amounts to a little over $920B https://crsreports.congress.gov/product/pdf/IF/IF12595

Canadian GDP is a little over $2.1T https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=CA

We’re talking nearly half of their GDP. In addition, half of Canadian foreign investment comes directly from the US. They will continue to be integrated into the US economy, even if Trump doubled the tariffs tomorrow.

And that’s because Canada, and Mexico to an even higher extent, are completely reliant on US trade. They both have no real choice but to grin and bear it. They will of course speak out publicly for the domestic audience but things will continue more or less status quo for the foreseeable future.

just means they are in bed with Nazis

Fascism is always the best business decision. This is the inevitable result of capitalism. The institutions on a good decade are strong and resilient. Oligarchy, yes, but still a more or less free society.

Eventually though, there will be a series of crisis in succession that causes the establishment to weaken just enough for a strongman to slip in and take the reigns. In the 20th century it was the fallout from WW1 and the Great Depression. In our time it was COVID and the Ukraine + Israeli wars (and to some extent, 2008 housing crisis)

One key part of fascism is that it is almost paradoxical

a) A populist-driven ideology, which means it appeals to the lowest common denominator

b) An elitist-driven ideology, which means it idolizes and puts value in the elites of a society

What ends up happening is the state picks and chooses elite groups of people who end up running the show. So for example, if you are Zuckerberg or Musk or Bezos… you know that if you play nice with Trump that he will reward you and you will have certain advantages by having a friend in an authoritarian government. You also know that if you don’t play nice with Trump, he will try and hurt you using both legal and illegal mechanisms.

Therefore, the best investment you could make is aligning yourself with the fascist state.

This was always going to happen. Sort of like how humans eventually will catch a cold or develop cancer. The immune system on a good day is strong enough to repel these types of problems. But eventually, you will be under some stress for one reason or another and your immune system is not enough to stop the inevitable cold or what have you.