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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Author: albaby1 ✶❂🐝 GOLD
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Number: of 86252 
Subject: Re: Newsom: We'll still do the tariffs
Date: 09/01/26 12:27 PM
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Because they literally didn't understand that the vat majority of oil that Alberta pumps first goes into the United States before making its way eastward to Canada's eastern provinces. Would have been a very cold winter in Quebec had they followed through.

Again, they threated to shut off the flow of oil to the United States, not oil that goes in a pipeline that passes through U.S. territory to Canada. We import about 4-4.4 million bpd of oil from Canada, about 60% of our crude oil imports. Oil that goes to U.S. refineries. If Canada shut off that oil, it would be catastrophic for our own economy. It would also be catastrophic for their economy also, but it's an effective hand to play in these mutual-harm trade posturing discussions. Or the "hand grenade in an elevator" metaphor I've used before.

USMCA. Trump negotiated it...but it's still in force and will be until 2036. Did you know that? Did you further know that the vast majority of trade between our countries is covered by it and the current dispute is over Canada's total ban on American alcohol and other practices?

Yes, I knew that. I also know that he's using the claimed Section 338 tariff authorities to impose the 50% tariffs to override the provisions of the USMCA. IOW, he's taking the position that the U.S. doesn't need to follow the terms of the USMCA anymore, and can impose these massive tariffs, because he - and he alone - has made a determination that Canada's not treating us properly. So after retrading USMCA already, he's now simply disregarding it in order to force Canada to do things differently than the agreed terms of the USMCA. Did you know that?

The current dispute is over the U.S. trying to retrade the auto sector provisions and to force Canada to live under our preferred steel tariff regime, rather than the one they feel is best suited for their economy. We get to decide to massively increase our imports of critical raw materials from other countries if we want (hi, Venezuela!) because we recognize that imports of factors of production can strengthen our economy. America First, and all that. But Canada doesn't get to do that, because we want to gain the benefit of locking them into trade relationships with us to our economic benefit. No Canada First - only America First! Unsurprisingly, Canada's telling us to pound sand with that.

That's certainly a take to have.

It's the one consistent with the facts. Trump has imposed or threatened massive tariffs against Canada over and over again, with as many different reasons. Wildfire smoke, fentanyl, illegal immigration, Mark Carney saying something at Davos that Trump didn't like, etc. The only constant is that Trump is unabashedly and enthusiastically protectionist, and believes to his core that trade deficits mean the other side is cheating or taking advantage of you. If it isn't this, it will be some other excuse to levy tariffs against Canada.
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This community has written 86,214 posts about US Policy. The article-length ones it recommended most:
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