Personal Finance Topics / Macroeconomic Trends and Risks
No. of Recommendations: 4
Has the dike broken?
https://cleantechnica.com/2025/10/29/canada-may-re...There is a rumor flying around the interwebs that Canada is considering a plan that would remove its current 100 percent tariff on electric cars manufactured in China.China EVs could appear north of US-Canada border. How long before Chinese EVs appear on US streets?
No. of Recommendations: 8
Ford's Oakville, Ontario plant had been shut down since production of the Edge ended, over a year ago. Ford says they will retool it for F-series Heavy Duty trucks. The Strabismus plant in Brampton has been shut down since production of the Charger ended. GM closed one of it's Canadian plants a few years ago. What is left is Strabismus Windsor Assembly, one GM plant building pickups, Ford Essex Engine, Honda Alliston, and one Toyota plant, that I can think of right now. There is chatter that the remaining "big three" plats will be closed and production moved to the US, because of Lord Trump's tariffs.
Bottom line: there isn't much of a Canadian auto industry to protect anymore. I fully expect Ottawa to legalized EU compliant vehicles, to maintain consumer choice. They may as well drop the tariffs on Chinese cars as well.
Steve
No. of Recommendations: 8
The additional tariff was intended to support the US, which also imposed a 100 percent additional tariff on Chinese cars to protect the US auto industry.
This is clearly a case of "Canada First", as there is little reason to take China's retaliation to protect US interests at the time that the US is being aggressive towards Canada (both in trade and sovereignty).
There are also plans for Carney to visit the Hanwha Ocean submarine manufacturing facility. Canada is considering awarding a multi-billion-dollar contract to the Korean company while also exploring a bid by Thyssenkrupp Marine Systems backed by Germany and Norway. Defense ministers from those two nations traveled to Ottawa recently to make their case to Carney and Canadian officials. A nation just south of Canada also manufacturers submarines, but for some reason, Canada is not looking to source its new boats from that country.
Canada is making it clear that, despite the US thinking of it as an appendage (a 51st state some might say), they are a separate entity who will no longer be taken for granted as making decisions which favor the US more than Canada.
Jeff
No. of Recommendations: 3
Canada is making it clear that, despite the US thinking of it as an appendage (a 51st state some might say), they are a separate entity who will no longer be taken for granted as making decisions which favor the US more than Canada.
Tim used to talk about Canada's purchase of F-35s. I was wondering how that "deal" was coming along, so asked the Google net sifter.
Canada is contractually obligated to purchase 16 F-35 fighter jets, with the first deliveries expected by early 2026. While the original plan was to buy 88 jets to replace the CF-18 fleet, the government is currently reviewing the decision for the remaining 72 aircraft due to rising costs, potential pilot and infrastructure shortages, and shifting political considerations. Options like the Swedish JAS 39 Gripen are being considered as a potential alternative or supplement
Meanwhile, while US weapons are being shipped to Ukraine, the US is not paying for them. Apparently, the other NATO nations are paying for the US weapons. What if the other NATO members start thinking "why not give this money to our own arms industry, instead of to the US?"
hmmm
Steve
No. of Recommendations: 0
There are a few factors to consider:
Are there other options which meet all reasonable requirements and which would save money? (paying more for features which are unlikely to offer significant benefits doesn't make sense)
In this context, the total cost of ownership over the life expectancy of the item - including training, maintenance, upgrades, fuel usage. etc.
Is the compatible avionics and weapons system available from multiple sources? Who is the likely adversary and how does the hardware match up against there systems and tactics.
Assuming parity in choices, are there current or potential political benefits or liabilities to making the choices?
Are there potential export license restrictions on some major component.
Jeff
No. of Recommendations: 0
for countries that never had a major economic link in the auto chain, currently getting chinese EVs are a no brainer.
there are reports of un-used cars shipped worldwide for ~70% off listpices (which means <80% of those available in america) after mfg sales to 3rd-party brokers (so that subsidies based on mfg production, not profits, can be received from the local+national government).
however, this will last only ~2 years as the subsidies vanish and dozens of chinese car companies get wiped out. with the survivors, prices may be raised to barely offset tariffs. and as an owner, what does one do about repairs and parts?
canada is in a tricky situation. they have an existing history , infrastructure, and pieces of nafta still in play. although 3 years of MAGA nonsense is left, something as simple as trump lifting the 'pay per transit' (e.g., fair tariff on final shipment, not intermediates) would change the vibe. trump may even realize (or get a bribe) from the AMERICAN car companies he is hurting.
No. of Recommendations: 0
The additional tariff was intended to support the US, which also imposed a 100 percent additional tariff on Chinese cars to protect the US auto industry.
Intended or supposed, it is nonsense in economics. I could use other choice words. This stuff is trashing the labor markets. That was one of the hopes.
