What is the purpose of tariffs on Canada?

[Woodznutz]

How can Trump adjust for the fact that we have 300 million more people than Canada? I cant wait for your brilliant answer.

What does that have to do with anything?

 

[Marener]

Tariffs punish businesses that import stuff, and consumers that buy that stuff. No problem if there is balanced trade but when you have a $37Trillion cumulative trade deficit something has to be done.

So it’s coercing us to give business to uncompetitive industries for political points.

That’s, uh, shitty economics.

 

[citygator]

FYI, there is no such thing as a Trade Debt... Think about it...
I think they don't understand that
Trade Deficit is not Federal Deficit
They are not related at all...

That is correct. A budget deficit arrived at by the federal government spending more than it collects in taxes is in no way related to private consumers buying more products from Canada than they sell to it. These are the same morons who think Transgenetic mice means mice are becoming transgender. These are the same folks who think China pays when Trump puts a tariff on Americans.

 

[Woodznutz]

Are we talking

Trade Deficits?

You know Canada has nothing to do with US Federal Deficit.

Of course they do.

 

[CowboyTed]

Americans only pay tariffs if they buy foreign products, no tariffs on American products sold in America. it is amazing how many people refuse to understand how this works to help American companies and small businesses.

Do you know how the modern day global supply chain actually works....

The computer you are typing on it is the outcome of a that...

The type of isolationism has been tried many times before and the major suffers are the country that isolates themselves...

You are going to push infierior goods on US people. By the way you are doing this while US has close to 100% employment.

What the Trump admin is doing is destructive and taught in the first term of Macroeconomics..

 

[martybegan]

I have a Bachelor's degree in Macroeconomics...

The trade agreement between US and Canada was signed by Trump in 2020 and is due to be reviewed next year...

Tweaks have already been made by Biden... He upped soft Lumber from 8.5% to 14.5%...

So do you want all tariffs gone, cause Trump put in a few tariffs himself at the request of US business...

Why didn't he ask for the trade talks due for next year to be pulled forward?

Also, could you give a list of those tariffs and how much trade it is affecting.. This would be the start...

Bullshit.

 

[CowboyTed]

That is correct. A budget deficit arrived at by the federal government spending more than it collects in taxes is in no way related to private consumers buying more products from Canada than they sell to it. These are the same morons who think Transgenetic mice means mice are becoming transgender. These are the same folks who think China pays when Trump puts a tariff on Americans.

citygator
I was hoping to see their answers...

I deserve fun too....

But I think a reporter in the WH should ask trump:
Since we seem to be starting trade wars between our 4 largest trading partners at once. Do you know the difference between a trade deficit and a federal deficit?

Now that would be great TV...

 

[Woodznutz]

Do you know how the modern day global supply chain actually works....

The computer you are typing on it is the outcome of a that...

The type of isolationism has been tried many times before and the major suffers are the country that isolates themselves...

You are going to push infierior goods on US people. By the way you are doing this while US has close to 100% employment.

What the Trump admin is doing is destructive and taught in the first term of Macroeconomics..

I would consider $37Trillion national debt "Macroeconomics".

 

[Woodznutz]

citygator
I was hoping to see their answers...

I deserve fun too....

But I think a reporter in the WH should ask trump:
Since we seem to be starting trade wars between our 4 largest trading partners at once. Do you know the difference between a trade deficit and a federal deficit?

Now that would be great TV...

Simple, it's all about the money. The trade deficit is in one pocket, the federal debt is in the other pocket...of the same pants.

 

[CowboyTed]

Tariffs punish businesses that import stuff, and consumers that buy that stuff. No problem if there is balanced trade but when you have a $37Trillion cumulative trade deficit something has to be done.

$37 Trillion?
That is your National Debt...
Your federal Government runs that...

That has next to nothing to do with your trade deficit..
US trade Deficit is is less about $900bn, but has already increased significantly under Trump.

 

[CowboyTed]

Simple, it's all about the money. The trade deficit is in one pocket, the federal debt is in the other pocket...of the same pants.

Nope...

Not even close.... I mean, really missing the whole thing..

 

[CowboyTed]

So it’s coercing us to give business to uncompetitive industries for political points.

That’s, uh, shitty economics.

But I think we have established he doesn't know the difference between Trade Deficit and Federal Deficit...

I think they think they are similar because they have the word Deficit....

This could explain Trump's view too...

I keep on saying that Canada have offered to not sell them Oil, Gas & Alu and that will get rid of the Trade Deficit with Canada.
It is becoming more and more clear that they don't know what they want...

We must also understand that they say they want all this to be made in US, but US is close to 100% employment. Who is going to make this stuff? They are trying to deport as fast one part of their workforce while demanding more jobs...
This clearly doesn't make sense..

 

[citygator]

Simple, it's all about the money. The trade deficit is in one pocket, the federal debt is in the other pocket...of the same pants.

Explain how that works. I am sitting in my house now. I can go to the store and buy Canadian Bacon or American Bacon. How does my decision impact the Federal government spending or the taxes it collects?

 

[Woodznutz]

$37 Trillion?
That is your National Debt...
Your federal Government runs that...

That has next to nothing to do with your trade deficit..
US trade Deficit is is less about $900bn, but has already increased significantly under Trump.

Don't you see the connection between the hemorrhaging of $800Billion per year from the economy and government borrowing/debt?

 

[Dragonlady]

I have a Bachelor's degree in Macroeconomics...

The trade agreement between US and Canada was signed by Trump in 2020 and is due to be reviewed next year...

Tweaks have already been made by Biden... He upped soft Lumber from 8.5% to 14.5%...

So do you want all tariffs gone, cause Trump put in a few tariffs himself at the request of US business...

Why didn't he ask for the trade talks due for next year to be pulled forward?

Also, could you give a list of those tariffs and how much trade it is affecting.. This would be the start...

And this is the result:



Trump truly needs a Shawinagan Handshake.

 

[Woodznutz]

Explain how that works. I am sitting in my house now. I can go to the store and buy Canadian Bacon or American Bacon. How does my decision impact the Federal government spending or the taxes it collects?

If $800Trillion leaves the economy this year the government has to backfill the loss by borrowing. Money that leaves the economy can't provide any revenue through trade and taxes. That's the connection. The private sector can't print money. Sitting in your house, there's a connection between what you earn and what your wife and kids spend. If they spend more than you earn or you get a cut in pay you might have to borrow.

 

[Dragonlady]

Don't you see the connection between the hemorrhaging of $800Billion per year from the economy and government borrowing/debt?

The $800 billion is not being haemorrhaged from your economy. You’re importing goods from Canada that you are in turn, are processing and reselling to Americans at a profit for the importers.

You’re buying our crude oil at 25% below market rate, refining it and selling it to American consumers at a price cheaper than any other imported oil you sell

American workers have jobs refining the oil, and using the softwood lumber (also sold at a discount), to build homes in the USA. And given the losses from wildfires, flooding and wind storms due to climate change, you need all the cheap building materials you can get.

You are not in any way subsidizing the Canadian economy. You are getting better than a good deal on the stuff we are selling you. And you’re profiting off of the purchases you make from us

 

[Woodznutz]

You’re buying our crude oil at 25% below market rate, refining it and selling it to American consumers at a price cheaper than any other imported oil you sell

Most of your oil is heavy crude.

"Therefore, heavy crude oil is generally sold at a discount to light crude oil to account for the extra operating costs and larger investments made in downstream processing units."

 

[Mac1958]

Looks like the great dealmaker is starting to bend.

 

[Dragonlady]

What is the 'market rate' for heavy crude?

Why don’t you Google that?