Politics, Canadian business, trade: a few points from a Canadian company president
Self-tutoring about the ongoing trade situation between the US and Canada: the tutor echoes a few points from a CBC interview.
The following is by my understanding.
News seems to change hour to hour about the trade situation with the US. To me, it seems out of Canada’s control. I saw a very interesting interview in which the interviewee makes some critical points.
Her first observation I particularly like is that the tariffs are “purely inflationary.” By an academic’s point of view she is of course correct, since they inflate the price without any extra value being exchanged.
Following that idea, still from an academic point of view, it might be said that long-term inflation typically is caused by the government, either by imposed regulations or by running a deficit. People sometimes seem to miss that connection.
The interviewee mentions later that who the tariffs really hurt is the American people, but they seem indifferent. Therefore, Canada doesn’t have the power to change the situation.
To me, she is exactly right. The US voters’ apparent complacency seems surprising, and not only about this issue. One might wonder the reason(s) for it, but such might be for one or more future posts.
I also agree that, apparently, there isn’t much Canada can do to change the US position. It seems Washington has a greedy attitude, so no deal at all is likely better than a deal they want to offer.
The interviewee later observes (somewhat paraphrased, perhaps): “We’ve been looking at buying locally…trying to avoid buying from the US…. We had an American division…we’ve closed that.”
Here, she makes a point I find reassuring: her reaction is to retreat to Canada. Canada needs more of that, in my opinion, since the US can’t be counted on these days.
Another very interesting observation she makes is that “Donald Trump did not happen in a vacuum…the American government has been headed this way for awhile.”
As an exporter, it seems, she is revealing her instinctive impression of the American attitude. How optimistic can one really be about the next US administration if protectionism plays well there?
No one loves the US more than I do. I lived on a US base as a kid, and I’ve travelled there over the last few years. It’s always been wonderful down there. At the hotel in Memphis, the front desk agent smiled: “You don’t wanna leave Memphis.” She was right.
Yet, as a nation, it seems, the US is heading in its own direction right now.
Source:
Jack of Oracle Tutoring by Jack and Diane, Campbell River, BC.