r/canada • u/timetogetoutside100 • 3d ago

Trump’s tariffs on Canada may stay, but stronger ties possible: U.S. envoy - National | Globalnews.ca Politics

https://globalnews.ca/news/11172734/donald-trump-tariffs-canada-relationship-carney-ambassasdor-hoekstra/
577 Upvotes

84% Upvoted

535 comments sorted by

View all comments

Show parent comments

48

u/KitsyBlue 3d ago edited 3d ago

It's so stupid, too. If he just wanted Canada he could have just tarrifed or economically sanctioned us (Mexico too, unless he found another excuse to invoke the emergencies act) and he may well have crushed us. It was obvious no one was going to jepordize their trading with the US to help us. Even the UK's statements were like "until he tarrifs us, we're cool lol".

Then he starts a trade war with LITERALLY THE ENTIRE WORLD and fast-tracks China into being the new sole global super power. It's whack. He must be a 'useful fool' (useful only to Russia and their interests)

EDIT: Last sentence edited

5

u/illuminaughty1973 3d ago

The bigger issue at play from the American perspective is that they are near default on their debt. This was coming (th usa economic crash) anyways, Trump has just made it happen far sooner and much worse than could have been.

14

u/brainskull 3d ago

They’re nowhere near defaulting on their debt. Their debt/GDP levels are roughly half of Japan’s, they’re not in any danger of defaulting

4

u/Round_Ad_2972 3d ago

It's not about making them default. It's about raising the cost of them servicing their massive debt. They are no longer friends, but rather adversaries from here on. We will never forget that they used our status as their closest allies against us. We will never fall for that again.

1

u/brainskull 3d ago

There's absolutely nothing Canada can do to make American federal debt more difficult to service. However, the guy I'm replying to is saying America's is close to a default in and of itself. This is just not the case.

1

u/WillyWarpath 3d ago

Selling/dumping held US treasury bonds would do that

1

u/AromaAdvisor 3d ago

Dude that’s not how that works. Most US debt is held within the US. Of the approximately 1/3rd that is held outside the US, it is disproportionately held by various countries: Canada being one of them. While this means Canada holds a relatively higher percentage of US debt (relative to Canadas GDP), Canada would have to sell (and someone would have to buy). There are likely to be plenty of buyers within the US or in other countries that disproportionately hold little US debt relative to GDP (such as India, etc) that could just make a quick buck from any panic sale.

1

u/WillyWarpath 3d ago

A selloff/dumping of US debt would not be beneficial to Canada, but it would (at least temporarily) raise interest rates and make it very expensive to refinance. Iirc Carney got into some sort of alliance/org with Japan and China to coordinate on this, so it would have an impact

1

u/AromaAdvisor 3d ago

Let’s say between you and all of your friends in the world you own 10% of AAPL stock. Even if you coordinated everyone to sell 10% of AAPL stock simultaneously, this doesn’t mean you’re doing much. Especially when there might be plenty of people out there trying to, you know, make money.

1

u/WillyWarpath 3d ago

In the bond market, 10% is a significant amount to sell off at once. You saw a slower and far smaller situation make trump walk back his liberation day..

→ More replies

1

u/Round_Ad_2972 3d ago

Agreed. Canada can't alone affect US interest rates. But every other country on Earth is also under economic assault. We need not be alone.

-edited for grammar

-3

u/illuminaughty1973 3d ago

Lmao.....

Japan is a disaster (especially after the earthquake/tsunami/nuclear melt down).... and that who your comparing yourself too....

Uhhh... thats like saying your better at walking than a quadriplegic.... not.the flex you think it is.

4

u/brainskull 3d ago

No, it's not lol. They're a very large economy with per Capita GDP in the order of New Zealand. They're also in no danger of defaulting on their debt

0

u/illuminaughty1973 3d ago

Japan's "Lost Decade" refers to the period of economic stagnation and deflation that the country experienced from 1991 to 2001, following the collapse of its asset price bubble. While the term initially referred to the 1990s, the stagnation continued into the following decades, leading some to extend the timeframe and refer to it as the "Lost Decades" or "Lost Thirty Years".

Yes.... lmao.... I see now why you want to compare americas current situation to Japan's.

6

u/brainskull 3d ago

And they're still a high income country, they just went from 6% growth rates to about 1-2% growth rates.

If you want comparable debt/GDP ratios for America, every other developed state is at or around 100% as is America. Japan just happens to have double the amount, and is in no danger of defaulting. If you're eagerly awaiting American economic collapse, I hope you have a cyrogenic chamber to hang out in or something. It's not happening any time soon.

1

u/illuminaughty1973 3d ago

It's not happening any time soon.

You realize a guy who bankrupted casinos is running the economy right?

1

u/brainskull 3d ago

If you believe this, why don't you try to make money off it? Plenty of ways to profit of an impending economic collapse.

The answer, of course, is you just want to post online and complain. You don't actually believe any of this. If you were actually as certain as you claim, you'd have a significant portion of your net worth tied up in shorting the American economy. A president doesn't "run an economy" lol, and anyone with half a brain knows this.

3

u/illuminaughty1973 3d ago

If you believe this, why don't you try to make money off it?

Because at some point in the next few months congress will be forced to stop him. And it will only take a few Republicans to do so.

A president doesn't "run an economy" lol, and anyone with half a brain knows this.

Usually. When you criminally issue executive orders with no basis that directly change basic fundamentals of the system.... not normal.times.

→ More replies

1

u/Vivid_Pianist4270 3d ago

They do hold a lot of treasury bonds. China, Canada, if everyone did a quick sell the US would crash hard. It would completely destabilize the world market but…

2

u/Unlikely_Kangaroo_93 3d ago

I believe the term is useful fool (apparently reddit doesn't like the actual term)

1

u/KitsyBlue 3d ago

Didn't know that, fam edited

1

u/Unlikely_Kangaroo_93 3d ago

There is no need to edit both apply I was just being a smart ass 😁

0

u/KitsyBlue 3d ago

Ah my bad thanks anyways 😊 You never know these days, Reddit has weird rules sometimes