Front Burner Trump’s tariffs and the case for Canada
Jan 22, 2025
Jim Stanford, a Canadian economist and Director of the Centre for Future Work, discusses the escalating trade tensions between the U.S. and Canada. He highlights Prime Minister Trudeau's plea for cooperation amid proposed 25% tariffs on Canadian imports. Stanford analyzes the intricacies of energy exports and investment ties, revealing how Canadians hold $5 trillion in U.S. assets. He also addresses the ramifications of these tariffs on supply chains and job markets, emphasizing the need for Canada to prepare strategically in the face of unpredictable U.S. policies.
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Subsidy Misconception
- Trump claims the US subsidizes Canada due to a trade deficit.
- Jim Stanford argues this is false, suggesting Canada subsidizes the US.
Canadian Energy Subsidy
- Canada provides the US with discounted oil and gas, representing a significant portion of their energy imports.
- The US also benefits from ownership and profits in the Canadian oil sector.
Digital Services Trade Imbalance
- The US profits from largely untaxed digital services exports to Canada.
- Canada's attempts to tax these services are met with resistance.