Feb 6, 2025 01:37 AM
(This post was last modified: Feb 6, 2025 05:53 AM by C C.)
https://www.bbc.com/news/articles/c8975dx1pe3o
INTRO: Don't mess with Canada - that's the private message to the US from the very top of Ottawa's political system. Just like nearly a century ago with the infamous American Smoot-Hawley tariffs, Canada got its retaliation in to Donald Trump's import taxes very quickly.
While the White House is claiming Canada's pledge to spend $1.3bn (£1bn) on a border protection plan has given it diplomatic victory in its battle over fentanyl traffic, there was very little conceded that was not already planned by America's northern neighbour.
Crucially, both Mexico and Canada were undeterred by a clear threat in Trump's executive orders that any retaliation would lead to higher tariffs on imports into the US. After consulting each other, Canada and Mexico instead both negotiated a month's pause with Trump. The returning US president likes making threats of tariffs on most days, and in many directions.
Since his inauguration, these have also been directed at Denmark, Colombia, China, Taiwan, the European Union as well as all of the Brics countries which include Brazil, Russia and India.
The rationale for his tariffs keeps changing and much about this situation defies logical explanation. So, Mexico, Canada and every other country facing tariffs or the threat of them have to decipher what Trump is really playing at.
And when they've done that, the question for the whole world is whether what we are seeing is an attempt by the US president to rewrite the entire global monetary system - and at what risk to America? (MORE - details)
INTRO: Don't mess with Canada - that's the private message to the US from the very top of Ottawa's political system. Just like nearly a century ago with the infamous American Smoot-Hawley tariffs, Canada got its retaliation in to Donald Trump's import taxes very quickly.
While the White House is claiming Canada's pledge to spend $1.3bn (£1bn) on a border protection plan has given it diplomatic victory in its battle over fentanyl traffic, there was very little conceded that was not already planned by America's northern neighbour.
Crucially, both Mexico and Canada were undeterred by a clear threat in Trump's executive orders that any retaliation would lead to higher tariffs on imports into the US. After consulting each other, Canada and Mexico instead both negotiated a month's pause with Trump. The returning US president likes making threats of tariffs on most days, and in many directions.
Since his inauguration, these have also been directed at Denmark, Colombia, China, Taiwan, the European Union as well as all of the Brics countries which include Brazil, Russia and India.
The rationale for his tariffs keeps changing and much about this situation defies logical explanation. So, Mexico, Canada and every other country facing tariffs or the threat of them have to decipher what Trump is really playing at.
And when they've done that, the question for the whole world is whether what we are seeing is an attempt by the US president to rewrite the entire global monetary system - and at what risk to America? (MORE - details)