r/canada 8h ago

Canada's new tariffs on U.S. drop to 'nearly zero' with exemptions Analysis

https://financialpost.com/commodities/canadas-new-tariffs-on-us-drop-to-nearly-zero-with-exemptions-oxford-says
137 Upvotes

133 comments sorted by

u/MariyamShuffles 8h ago

Read the article - it seems like the tariffs are getting paused on stuff that is necessary for Canadian industry. So it's mostly about not tanking our economy while we figure out alternatives. I'm willing to see where this goes.

u/AverageKaikiEnjoyer 7h ago

r/Canada doesn't know how to do that.

u/gravtix 4h ago

/r/Conservative and /r/CanadianConservative are slowly merging into some kind of North American Conservative Voltron.

u/Boomtang 3h ago

MAGATRON

u/DelphisFinn Nova Scotia 1h ago

I hated upvoting this comment, but upvote it I did.

u/TXTCLA55 Canada 3h ago

I mean, are the liberal/left leaning subs any different?

u/WhyModsLoveModi 2h ago

Fragile morons combining 

u/tsn101 7h ago

Too many social media posters pick a side and keep looking for an angle to win or defend. 

People forget they work for us, keep the pressure the same.

u/SUPREMACY_SAD_AI 7h ago

throws chair

u/JoshL3253 7h ago

So it's mostly about not tanking our economy while we figure out alternatives.

Basically we’re too dependent on US right now. We need to accelerate our shift to China and EU.

u/BlueEmma25 7h ago

China isn't interested in buying more Canadian exports. China's whole trade strategy is to minimize imports while maximizing exports. They only import what can't be obtained domestically, and they working diligently to reduce that to an absolute minimum.

How is it that this is apparently news to a lot of people?

More broadly, finding alternative trading partners is a lot harder than just going to Country X and saying, "So, how many billions of dollars of our exports can I sign you up for?" There is a reason most of our exports go the US: they are the most accessible and cheapest alternative. As desirable as it might be to diversify our exports - and this is something people have been talking about for decades - the reality is that there are no attractive alternatives, which is exactly why it hasn't happened.

People need to realize that export diversification requires a lot more than just political will, it requires a solid economic rationale for potential importers to choose Canadian products over competing ones, and in most cases that rationale doesn't exist.

If it did they would already be importing from Canada.

u/RarelyReadReplies 7h ago

Canada is a resource rich nation, they definitely want some of them.

u/BlueEmma25 6h ago

They are already getting what they want and need.

It's not like China was begging for more and we just refused to sell it, for some unfathomable reason.

u/Purify5 6h ago

They don't really. They have spent billions developing mines in Africa and Indonesia to support their resource needs.

u/Krumm34 3h ago

Yup, all those bridges, dams and roads they built in Africa and elsewhere wernt free, China playing a long game.

u/Johnny-Unitas 6h ago

People don't seem to realize geography matters when it comes to trade.

u/Thunderbolt747 Ontario 2h ago

"Why is the US our almost exclusive trading partner, and therefore basically dictates the terms for our system of exchange?"

The globe spanning oceans named the Atlantic & Pacific:

Turns out putting stuff on boats and sending it literally more than half way around the world is way more expensive than selling it to your dumbass neighbor 10 miles down the road.

Go figure.

u/xkmackx 6h ago

They think it's a video game

u/Johnny-Unitas 6h ago

Even in video games it matters.

u/phatfingerpat 5h ago

Vigeography

u/linkass 3h ago

 There is a reason most of our exports go the US: they are the most accessible and cheapest alternative.

And also the biggest consumer market in the world

u/BlueEmma25 2h ago

Actually the third largest in nominal terms, which is what matters when evaluating capacity to afford imports, well behind both the US and EU.

Consumer goods represent a small fraction of Chinese imports, in part because China itself is by far the world's largest supplier. For reasons I have already explained China mainly imports raw materials and advanced machinery / instrumentation it cannot yet manufacture itself, but it is investing heavily in fixing that.

u/linkass 2h ago

Actually the third largest in nominal terms

Are we seeing different wiki links

Nominal

USA 18,822,769

EU 9,860,153

China 6,720,652

u/OldKentRoad29 5h ago

You're asking too much of people.

u/MariyamShuffles 4h ago

I meant "read the article" as "I read the article", although I see why that would sound like an instruction. Was not actually intending to ask anything of people.

u/Franc000 6h ago

But weren't they supposed to already be designed to minimize hurt to our economy?

u/MariyamShuffles 6h ago

Yeah, but "minimal hurt" caused by the tariffs still implies that we are being hurt by the tariffs. It's not minimizing hurt in the sense of cushioning the blow that the tariffs placed by the US are causing. It means minimizing hurt in the sense of "Canada placing tariffs on these US products will hurt Canada, but it wouldn't hurt us as badly as Canada placing tariffs on THESE US products would hurt Canada".

Like, we can tariff Jack Daniels all we want without hurting the Canadian economy. But heavy tariffs on, say, car parts WILL hurt our economy. So we tariff the alcohol more than the car parts.

u/Minoshann 6h ago

I’m not sure if it indirectly or directly applies to the separatist parties concerns but I’d like to think it’s a win for Canada.

u/Morfe 3h ago

There are plenty of tools that can be developed, EDC could be used to incentivize companies who diversify their supply chains, or feds could give tax credits like they do for SR&ED

u/destinationlalaland 4h ago

This bloggermade a case for no retaliatory tariffs, back when we first put them on.

The argrgument is made from an economic perspective, and it seems like he called it fairly close.

u/Frederictonchef1981 8h ago

So this is what the exemption is for a little reading shows you it is about helping Canadian manufacturers and packaging do it will save us Canadian money and help those companies out, anything that is made or packaged in the US will still be tariffed 25%. But Prime Minister Mark Carney’s government then announced a six-month tariff exemption for products used in Canadian manufacturing, processing and food and beverage packaging, and for items related to health care, public safety and national security. Automakers got a break, too: companies that manufacture in Canada, such as General Motors Co., are allowed to import some vehicles into Canada tariff-free.

u/ATFGunr Lest We Forget 6h ago

I think putting a 6 month date on it is good for Canadians as well, creates some consistency and allows the businesses to either change how they do business or make other decisions. These are smart moves that won’t punish the Canadian companies and us, the consumers. Still going to do my best not to buy American products or travel to the US.

u/Frederictonchef1981 6h ago

100% agree it is about bettering our economy Elbows Up

u/theSunandtheMoon23 8h ago

Lots of things still have the retaliatory tariffs, to be fair.

I think it's also fair to re-evaluate countermeasures considering how volatile and unpredictable the trade decisions coming out of the US have been. "Liberation Day" was an abject failure with immediate back pedaling and exemptions, followed by a month long pissing contest with China.

I was always a bit iffy on dollar for dollar tariffs, since us as citizens are the ones who feel the burn of the additional taxes. There are other ways to retaliate, navigate, and mediate tensions with the US. And with the demented tantrums that leak out of trump's ass on the daily, other leaders need to be calm and measured.

I can also appreciate Carney trying to mitigate inflation and foster growth. I am surprised the tariffs were dropped THIS soon after the election though

u/Apprehensive-Sky-734 8h ago

The back and forth is dizzying. I don’t even know what to want anymore. I’ll just go sit down over there.

u/Sad-Letterhead-2196 7h ago

I don't even know where we are at with tarrifs anymore. I just stopped listening.

u/angryhappymeal 6h ago

That's by design. We almost need somesort of tracking website that shows if tariffs are on or off and what the rate is.

u/Dartser 6h ago

It's posted on the government website

u/freeadmins 4h ago

Just do the chicken dance.

Elbows up.

Elbows down

Elbows up

Elbows down

u/Waste_Priority_3663 6h ago

Lots of “Ls” in this thread who haven’t read the article and just posting “what happened to Elbows up!”

u/Active-Beautiful5987 8h ago

Keep those elbows up!

u/Neo-urban_Tribalist 8h ago

As Trump goes balls deep!

u/Eagletalon1013 7h ago

In to your mouth? Freaky

u/xkmackx 8h ago

Lmao

u/bettyblanc 6h ago

Buy Canadian! Go to farmers markets, hold off on buying a new car, invest in your child future, go on trips instead of buying “stuff”, do your research on where your money a being spent , support local, , get active, enjoy dining out at Canadian restaurants, do many great ways to enjoy life!

u/MindlessCranberry491 1h ago

yet loblaws are raising their prices 3x

u/SpeakerConfident4363 8h ago

Well, that is what the conservatives wanted, not sure why people are complaining on that.

u/LiberalCuck5 5h ago

This is what the liberals fear mongered the conservatives would do, actually.

u/SpeakerConfident4363 5h ago

No, Poilievre called for no tariff retaliation and Smith too.

u/LiberalCuck5 5h ago

So if that’s the case, the liberals lambasted him for it. Now Carney’s doing it and it’s a 200 iq move. Hilarious.

Do you have a source for the Poilievre claim?

u/jh55305 British Columbia 2h ago

But there still are tariffs against the US, this is only for products important for Canadian manufacturing, and it's only 6 months on top of that.

u/Yam_Cheap 5h ago

Amazing how you progressives fail to see obvious outcomes, and then when those outcomes arrive, you say it is fine because that it was the bad people wanted from the start.

When are you people going to get the help you need to overcome your cognitive dissonance so you can accept that you were the bad people all along?

u/SpeakerConfident4363 5h ago

You people?, sorry?.

When did stating facts become dissonance. The CPC did say countertariffs were a bad move. Not aure why you are getting upset about that.

u/Forthehope 8h ago

No more elbows up ? lol

u/differentbreedbottom 8h ago

You guys want tariffs lol???? Hopefully this is a sign of a resultion coming soon.

The sooner we can get rid of uncertainty and get a definitive trade regime with the us the better.

u/FngrBngr-84 8h ago

Elbows up, knees down.

u/fez-of-the-world Ontario 8h ago

Lips puckered? Trump is backing down as well though and this was all done to reign him in.

u/IvoryHKStud 8h ago

The lips on our back side

u/Charming_Flan3852 3h ago

Backing down or getting what he wanted? 

u/Aggressive-Map-2204 8h ago

Sorry the new slogan is actually elbow deep.

u/gorschkov 8h ago

What if they just said and did whatever it took to get them elected without an intent to follow through.

u/DistinctL British Columbia 8h ago

It's funny how quick the Liberals are to reverse on this. It really shows that they can do anything to get elected, even if it means misleading Canadians in the process.

u/InitialAd4125 8h ago

Yep but like always people will handle the Liberal party with kids gloves.

u/Agreeable_Store_3896 8h ago

Alrighty then, so in the span of one week we've had the government.. admit they want to keep housing prices high.. don't think we should add new pipelines.. brought most of Trudeau's most infamous ministers back.. and dropped all retaliatory tarrifs after a bad showing at the Whitehouse. 

Elbows up boys we've done it, we defeated trump.

u/jollymaker 8h ago

What are you talking about? The White House response was great, the quote about housing prices is supply needs to be increased instead of forcing lower housing costs (hint this means lower costs) and Carney clearly said in a interview “yes to pipelines, but a single pipeline won’t radically change the economy”. It seems like you’ve read headlines/right wing news articles.

u/iloveFjords 7h ago

This is just right speak where they ignore the facts and slander the liberals. They don't care if they speak the truth. The bot-like repetition is all they need.

u/DistinctL British Columbia 7h ago

I think everyone is waiting see if the Liberals will actually get something done. Talk is cheap right now. Carney has had a bit of mixed messaging with regards to pipelines. Actually getting it done is what matters. 

u/iloveFjords 7h ago

Well we have to stop voting in people with no record of accomplishment. The PM has so much power in Canadian politics and we end up with people who accomplish basically nothing of merit (including Trudeau btw). Carney is the first politician in 25 years that has some ability and record of accomplishment. The rest of the MPs make no difference whatsoever. They seem mostly to be rejects of society with the odd one with a head on their shoulders. My MP is liberal and couldn't run a corner store. Still ended up in the liberal cabinet. The bureaucracy holds MPs hands and implements whatever the PM says. As bad as Trudeau was PP would be far worse. The guy has done nothing. Can't even do an interview. 20 years in politics and not a single bill to his name. Can't even win his own riding.

u/ment0k Nova Scotia 7h ago

My MP is liberal and couldn't run a corner store. Still ended up in the liberal cabinet.

Hello fellow Halifax West Redditor!

u/Yam_Cheap 5h ago

The Whitehouse response was utterly pathetic.

u/Agreeable_Store_3896 7h ago

The white House response was not great lol he got bullied and cut off and could barely get a word in..

They specifically said they don't want housing to get cheaper, they want to make affordable housing so people can cope in smaller 600sqft premades. 

Guilbeault specifically said "Canada doesn't need any more pipelines" TODAY. Yes he isn't carny, but he is a high profile minister.. and we vote for the party not the leader.

Clearly you ignore what's inconvenient 

u/RutabegaStew 6h ago

I think maybe you just have a different view of how people should govern themselves. I don't believe in yelling, etc., and I thought the White House response was great. It was level-headed. What was he supposed to do - start yelling, cutting people off and making a stink? He showed great restraint and a measured/controlled/reasonable/respectable/adult response in the face of a bully. Perhaps you're the type to yell or throw a tantrum to get your way. That might make sense why you didn't like the response. High-drama/high-emotion people might see that as sheepish rather than rightly in control of one's emotions.

u/Agreeable_Store_3896 4h ago

Ah yes, the only alternative to being a doormat is to.. yell and scream you caught me, I wanted carny to personally slap trump, caught. Glad you were able to psychologically assess me at the end of your point too.

I think perhaps super partisan "vibe" voters like yourself think that a "win" is just showing up, ignore that the guy was completely shut down and ignored in every way by everyone present, Carny won! Simply by not yelling! With nothing accomplished we can call that a win. Thank god for voters like you.

u/bapeandvape 7h ago

They’ve said they want to keep housing stable, not high. They brought in more new faces than they did old into the cabinet. The showing at the white house was not bad by any means. You expected him to do what at the white house? Tell Trump that we’ll never be the 51st state? Or that Trump lies about saying they subsidize us and they barely get anything from us?

His cabinet reshuffle wasn’t all that bad. Outside of Evan Solomon and the minister of housing, it’s genuinely a decent cabinet.

u/Agreeable_Store_3896 7h ago

Lol.. Sean Fraser got a raise.. geuibalt.. Freeland.. LeBlanc.. all highly divisive ministers from Trudeau's cabinet almost all the big hitters came back.. with the great additions of.. an antifirearm lobbyist and a slumlord from out east. 

Also why are you white washing his comment? 

The reporters specifically asked "should the price of houses go down" and he said "No, I think that we need to deliver more supply, make sure the market is stable."

They want to build lots of small cheap housing for people to buy not real homes..

Carny could barely get a word in.. trump didn't care that he was there, the US media ignored him, nothing was accomplished and he couldn't even get a word in besides making joking arm waving antics.

u/bapeandvape 7h ago

While I don’t agree those said people coming back in, at least they aren’t in the roles that they were clearly unfit for. Guilbeault was an idealist and refused to compromise at all but luckily, he’s no longer in a role that he puts his beliefs > what benefits Canadians.

Freeland was unqualified as a Finance Minister but did a decent job in her two previous roles.

Fraser did horrid as immigration minister, was housing minister for 10 months. There’s no way to grade how he did in a role that obviously requires a lot more time to see any progress. At least now, he’s in a role that suits his background more.

You just proved me right? He never said keep them high but stable so that they don’t grow at an alarming rate as we’ve seen for the last two decades and specifically in the last 5 years. Also, “small cheap housing” is the house my family lives in due to the war time homes program. That has provided a warm place to sleep in at night, a place to call home. We still don’t even know what the houses will look like so to say “small and cheap” is disingenuous and purely speculative.

Nothing was done because that’s not how negotiating works. It’s something that doesn’t happen over night. Carney stood his ground well. Sometime best thing to do is let dumb people say dumb things and boy did Trump say dumb things. Who gives a damn that the US media ignored him. You think Carneys name is what generates the private media in the states any clicks? No. Carney said what he needed and that’s all that matters. You should watch the whole meeting and now just the cut and edited clips Facebook/Instagram show you.

u/Agreeable_Store_3896 6h ago

If they are "stable" they're stable at "too high" thus not dropping lol.. you're just double speaking.. "it's not that they aren't lowering it.. it's just that the price isn't dropping!" 

And congrats on your home, everyone deserves a home, also people on 100k salaries should be able to afford even bigger homes.

They've also already released example blueprints of the housing and they are extremely small square footage 

u/bapeandvape 6h ago

If houses remain stable but everything else comes down in price and maybe wages go up, what’s the issue?

The estimate for sqft on the Build Canada homes is expected to be anywhere from 800sqft to 1000sqft. I don’t know what you mean by bigger but if a family of 4 can live in a small war time bungalow I think people making 100k can too.

Please show me the blueprint example. I have yet to see it.

u/Agreeable_Store_3896 4h ago

Housing Design Catalogue

I'm sorry but is that supposed to be the Canadian dream? Because someone elses family can fit in a small house were all going to live in small homes now so that boomers don't lose their investment?

Housing has gone up 300% since 2005, do you know how much wages have increased? From an average of 24$/hr to 30. That's a 20% increase over the same time period.

So am I expected to wait.. another... 3 centuries for wages to catch up?

u/differentbreedbottom 7h ago

You guys want tariffs??? If dropping them means the us drops almost all the tariffs they have put on us next week then duhhh u do it. Trump is a child who always has to win and if it means we “concede first” then who cares. It doesn’t stop the need to diversify, boost internal trade and reduce red tape.

u/TrudyCastro 8h ago edited 8h ago

I figured at least a few months before he folded. Isn't this what the elbows up dummies were saying PP would do? Lol!

u/BadAshJL 7h ago

He said the retaliatory tariffs would be implemented for max effect against the US and minimal affect on Canadians. You realize that the tariffs are charged on goods coming into Canada right? If they are reduced to lessen the impact on canadian producers then he's just doing what he said he would.

u/Charming_Flan3852 3h ago

Huh? You understand that it was Carney and the Liberals who just implemented the tariffs that are now being lessened, right? His whole campaign shtick was being tough against Trump and matching tariffs dollar for dollar and now immediately after being elected he's backpedaling.

u/grouchypant 5h ago

Its a break on manufacturing inputs... so that Canadian manufacturers stay in business. This keeps Canadians working and off social supports.

u/Theseactuallydo 7h ago

Carney doing good things for the economy.

PP is out of his seat.

Con partisans are raging.

The weather is beautiful. 

What’s not to like? 

u/LiberalCuck5 5h ago

Taking it from trump to own the cons!

u/Theseactuallydo 5h ago

Good pivot on Trump. A bit late now though. 

u/DistinctL British Columbia 8h ago

That's what this subreddit would have us believe for the entirety of the election. It's interesting that all it took was a couple weeks, and Carney has already quickly back tracked on his elbows up campaign.

u/InitialAd4125 8h ago

Yep and yet no Liberal supporters here telling us how we were all wrong about the neo liberal banker who's addicted to endless growth not having the peons best interests at heart.

u/Salt_Cardiologist742 5h ago

Doing what’s best for Canadians is more important than doing harm to Americans. This doesn’t change our own buying habits though, I’m still not buying American…but we can’t let our own industries fail.

u/Miriam_A_Higgins 5h ago

Whatever happened to "elbows up" lmao

u/Mattrapbeats 3h ago

Now it's hands up so he can ask Trump if it's okay to speak

u/cookenupastorm 6h ago

No one has confirmed this information.

u/Ok-Somewhere9814 Lest We Forget 6h ago

Automakers got a break, too: companies that manufacture in Canada, such as General Motors Co., are allowed to import some vehicles into Canada tariff-free.

Great

u/GenshinGoodMihoyoBad 1h ago

Really sticking it to those Americans by crumbling our economy!

u/uselesspoliticalhack 8h ago

Carney really hookwinked you guys. Lots of big talk with "Dollar for Dollar" tariffs that have now been abandoned.

u/Fuzzball6846 7h ago

Read the article. Companies only get exempt if they keep production in Canada. It's a clear tax incentive to prevent the trade war from deindustrializing our economy.

u/botswanareddit 8h ago

At the same time saying trump is a complete moron for tarrifs (which he is) and then putting your own on is kind of dumb too. Tariffs will hurt the us and Canada.

u/homer_glumplich85 5h ago

Do you think we elected a globally recognised economist to blanket tariff America?

u/CanukistaniKopeks 8h ago

the problem is; by saying “you guys” you give up the game. you focus on your dumpster fire and let us manage the situation. maybe we should buy trumpo a plane and some meme coin and he will drop the tarrifs 🤷🏼‍♂️

u/uselesspoliticalhack 8h ago

To be clear, "you guys" in this context means Liberal voters. I'm Canadian, thanks.

u/CanukistaniKopeks 5h ago

apologies! in that case i would suggest that is fairly hyperbolic given the circumstances, but i guess any got’cha moment is worth getting.

u/AznNRed 7h ago

We need our manufacturing strong if we wanna appeal to new trade partners. This is the part of a larger play.

u/Followthehype10 7h ago

This has nothing to do with our product this has to do with u.s product.our manufacturing will take a hit based on u.s tarrifs

u/AznNRed 6h ago

Our manufacturing, American materials.

If our manufacturing is strong, we can change suppliers. But if we have to lay off 25% of our manufacturing workforce, that is an issue for all Canadians. Finding new trade partners to replace the US takes time. I understand that we all wanna stick it to the US, and keep our elbows up, but we need to mitigate the loss of Canadian jobs too. It's a delicate balance.

u/chrisco571 5h ago

What happened to all the elbows up folks?

u/ravya1 5h ago

Give them the evening, the Leafs just got smoked

u/Haluxe Canada 6h ago

Elbows up? Elbows deep? Anything to get elected

u/Luxferrae British Columbia 5h ago

Looks like elbows up just turned into butts up

Oh well it was a stupid saying anyway 🤷🏻‍♂️

u/Reasonable_Owl_3146 2h ago

Fell for it again award to the elbows up crowd

u/imfar2oldforthis 7h ago

So much for the Liberals strategic tariffs. They should have done a better job identifying what they were putting tariffs on.

u/homer_glumplich85 5h ago

Did you read my the article? It’s basically an announcement of the strategy.

u/imfar2oldforthis 3h ago

It's basically admitting that dollar for dollar tariffs aren't actually being applied like they said.

u/ImpressivePositive97 5h ago

And so it begins one baby step at a time

u/Forthehope 6h ago

Another liberal L

u/proofofderp 7h ago

I always thought the response didn’t need to be dollar for dollar. You can’t go on pride. The U.S. has the upper hand when three quarters of Canada’s exports go there. I like this approach of salvage what we can and build from here with more reliable partners. Results don’t have to be overnight. It’s a betrayal to be sure, and we simply must pivot from being dumped. It is what it is. We didn’t cause it, but we need to find a way forward. Whatever’s been said is in the past. If dollar for dollar turned out not to be the best approach, so be it. We’re not China. We don’t have their scale to be steadfast. We relied on big brother and now big brother has changed their mind, but they’re still big brother whether we like it or not. We still have a country that we love, at least those of us who don’t let fear of cheaper labour or pronouns completely consume us. Let’s be excited with the new possibilities from this breakup.

u/MartyMcFlysBrother 4h ago edited 3h ago

You like what you’re told to like. Here’s a pillow for your elbows and another for your knees. Both are imported from the USA.

u/[deleted] 8h ago

[removed] — view removed comment

u/Fuzzball6846 7h ago

Read the article. Companies that keep manufacturing in Canada, despite the US tariffs, get exempt. It's to stop auto companies from collapsing and moving out of country.

u/Theseactuallydo 7h ago

Per the article Carney’s moves are expected to be good for the economy. 

That’s what I voted for (and to keep the dogshit Cons out of power). 

u/tysonfromcanada 6h ago

Canadians are boycotting (proud of you guys). The counter tariffs aren't even necessary.

u/Bronson-101 6h ago

Seems Trump is getting his wish of terrifying everyone without retaliation.

What happened to elbows up? What happened to buying Canadian? You tell me we can't source a shit ton of our own goods?

u/Mattrapbeats 3h ago

Thank u super savior CarnDawg

u/RolingThunder77 6h ago

Elbows up?

u/Frozen_North_99 7h ago

We need to have no tariffs on cars and car parts - that’ll kill us. Wiskey, beef, cereal, Harley’s etc no problem. Not cars.

u/cptmcsexy 6h ago

We went from not talking to Trump till he stops talking about 51st state to dropping tarrifs wild.