Manufacturers Set To Move Production Out Of Canada As US Tariffs Hit Hard
https://www.zerohedge.com/geopolitical/manufacturers-set-move-production-out-canada-us-tariffs-hit-hardThe circumstances of US/Canadian trade should be common knowledge by now, but the details often get mired in the swamp of political rhetoric. When Canadian Prime Minister Mark Carney describes the tariff issue as the US "waging war" on Canada, he knows exactly what he's doing. Carney has turned a simple trade issue over reasonable 10% tariffs into an existential crisis, an invasion, an ethnic cleansing, a last stand against "evil" imperialists.
But getting the Canadian public riled up with delusions that they are underdog insurgents will not help them keep manufacturing companies or domestic jobs. There is no reason to "endure" a trade war involving 50% tariffs that can be easily solved by simply taking the sweetheart deal that was offered to them. Carney could easily wait Trump out and try to renegotiate once a new president is elected. Unless, there's an alternative agenda at play for Carney.
Estimates in July on manufacturing losses indicated that 42% of Canadian companies (and some US companies) would be moving at least a portion of their operations to the US to avoid the debilitating tariffs. Some will be shutting down entirely. With Carney asserting that negotiations are off the table, this leaves no room for speculation. Businesses are adjusting operations for the long haul which means skyrocketing job losses for Canada.
Many companies are pulling out of Canada due to tariffs. How is that working for Mark Carney, eh?
