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| 2025-03-05 | 0 |
Based on the trade data, Canada would likely be in a worse position in a trade war with the United States. Here's why:\n\n1. Canada sends approximately 75% of its total exports to the US, while the US only sends about 18% of its exports to Canada. This creates a significant asymmetry in dependency.\n\n2. The US economy (around $27 trillion) is roughly 13 times larger than Canada's economy (about $2.1 trillion), giving the US more cushion to absorb economic shocks.\n\n3. he US typically runs a trade deficit with Canada (approximately $135 billion in goods in 2023), which means Canada sells more to the US than it buys, making Canadian producers more vulnerable to US tariffs.\n\n4. The US has more diversified export markets globally, while Canada is heavily reliant on the US market.\n\nThat said, a trade war would harm both countries:\n\n- Highly integrated supply chains, especially in automotive manufacturing, would be disrupted\n- Border regions in the US would face significant economic impacts\n- US consumers would face higher prices for Canadian goods (energy, raw materials)\n- Specific US industries dependent on Canadian inputs would face challenges\n\nWhile Canada would likely face more severe macroeconomic consequences, a trade war would ultimately be lose-lose, damaging industries and consumers on both sides of the border.
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| 2025-03-04 | 0 |
This actually is a benefit to both Canada and America and creates domestic industry. More then 75% of Canadian exports don't even go to the USA. Canada, America and Russia have the most resources independently from each other then any other countries in the world. Thankfully he's talking about the drug problem but not the visa scandal and illegal mass immigration problem that's collapsing the social assistance and medical systems. Its gonna be tough as you justify raising prices by selling out every Canadian citizen to foreign investment.
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| 2025-03-04 | 0 |
Who cares? Seriously Of course he's upset. Canada relies heavily on the U.S., with about 75% of its exports going to America, making us a major contributor to their GDP. Instead of making other countries richer, we should focus on manufacturing and building here at home. This would keep more money circulating in the U.S., boosting economic growth and strengthening our own GDP. A stronger domestic economy means more jobs, higher wages, and greater financial stability for Americans. Regardless of who’s president, we need fair trade policies that benefit the U.S. just as much as our partners.
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| 2025-03-04 | 0 |
canada exports 75+% of its overall products into the united states, it only imports 50ish% overall products from the united states of america. This is why the tariffs are in place. Agree or disagree, this is why trump is doing what hes doing. Our country is in shambles and we need our allies to pump money into our economy or else it will only get worse in our country. And both canada and mexico are outraged by the simple way trump is approaching this.
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| 2025-03-04 | 0 |
Canada’s Retaliation Against the Smoot-Hawley Tariff (1930)\nOne of the most immediate and severe retaliatory responses to the Smoot-Hawley Tariff came from Canada, which was heavily dependent on trade with the United States. Canada was the largest export market for U.S. goods at the time, and when the U.S. imposed high tariffs on Canadian imports, Canada responded with its own punitive tariffs on American products.\n\nBackground: U.S.-Canada Trade Before Smoot-Hawley\nIn 1929, about 75% of Canadian exports went to the U.S.\nCanada was also a major supplier of lumber, wheat, cattle, and minerals to American markets.\nThe two economies were deeply intertwined, and Canada had traditionally followed a low-tariff trade policy with the U.S.\nCanada’s Response: Retaliatory Tariffs (1930)\nPrime Minister R.B. Bennett responded to Smoot-Hawley by raising tariffs on American goods, specifically targeting products from the U.S. Midwest and industrial centers.\nCanada increased tariffs on over 16 U.S. goods, including:\nFarm machinery\nAutomobiles\nFruits and vegetables\nTextiles\nThese tariffs redirected Canadian trade away from the U.S. and toward Britain and other Commonwealth nations, under a new imperial preference system.\nEconomic Consequences\nFor the United States:\n❌ Sharp decline in U.S. exports to Canada\n\nU.S. exports to Canada dropped by 55% between 1929 and 1932.\nAmerican automobile and farm equipment industries suffered severe losses.\nMany Midwest farmers, who had relied on Canadian sales, went bankrupt.\n❌ Loss of a major trading partner\n\nCanada sought alternative suppliers in Britain, Australia, and other Commonwealth nations.\nThis permanently weakened U.S.-Canada economic ties, forcing the U.S. to reconsider its trade policies.\nFor Canada:\n✅ Diversification of Trade\n\nCanada strengthened trade ties with Britain and other Commonwealth countries.\nCanadian exports to Britain increased, helping Canada avoid complete economic collapse.\n❌ Short-term economic pain\n\nWhile Canada successfully retaliated, the tariffs raised prices for Canadian consumers.\nThe Canadian economy still suffered from the global depression, but it recovered faster than the U.S. by diversifying trade.\nLong-Term Impact\nPermanent Shift in Canadian Trade Policy\n\nCanada moved away from dependence on the U.S. and pursued closer economic ties with Britain.\nThis weakened U.S. economic influence in Canada for decades.\nRepeal of Smoot-Hawley and the Start of U.S. Trade Liberalization\n\nThe failure of Smoot-Hawley contributed to the Reciprocal Trade Agreements Act (1934) under Franklin D. Roosevelt, which lowered tariffs and encouraged bilateral trade deals.\nU.S.-Canada trade eventually recovered, but the economic damage lasted for years.\nConclusion\nThe U.S. intended to protect its industries, but Smoot-Hawley backfired by provoking Canada’s retaliation. This case study highlights how tariffs can damage relationships with key trading partners, disrupt industries, and reduce exports, ultimately harming the economy.
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