A Lone Federal Political Voice Opposing Retaliatory Tariffs

News release from Max Bernier, Leader of The People’s Party of Canada

It’s important to understand that the 25% tariffs announced by President Trump today are NOT imposed on Canada — they will be paid by American consumers and businesses who buy goods imported from Canada. Tariffs are a tax, and Americans who will have to pay more or go without our products will be the first to suffer.

Of course, Canadian exporters of these goods will as a consequence lose clients, contracts and sales, and will be forced to cut down on production and lay off workers. Or they will lower their prices to keep market shares and will see their profits diminish.

Because 75% of our exports go south of the border, our economy will for sure be very negatively impacted by this.

The stupidest thing our government can do however to deal with this crisis is to impose the same kind of tariffs “dollar for dollar” against US imports.

The US economy is ten times bigger than ours, much less reliant on trade than ours, and much less dependent on our market than we are on theirs.

Not only would retaliatory tariffs have much less impact on American exporters, they would immediately impoverish Canadian consumers forced to pay more for imported goods, as well as destabilize Canadian businesses that need inputs from the US in their production processes. It would more than double the harm of the US tariffs to our economy.

Trade wars are bad for everyone, but they are much worse for a small country with fewer options. We simply cannot win a trade war with the US. It’s very unlikely that Trump will back down. All we will do is provoke a massive economic crisis in Canada, until we are forced to capitulate.

Another self-destructive thing to do would be to set up giant “pandemic-level” bailout plans to support everyone affected by this trade war. This will simply bankrupt our governments even more than they already are and make us even weaker.

So what should we do?

1. Double down on efforts to control our border, crack down on fentanyl dealers, deport all illegals, and impose a complete moratorium on immigration, to answer Trump’s immediate concerns about Canada.

2. Tell the US administration that we are ready to renegotiate North American free trade and put dairy supply management and other contentious issues on the table.

3. Wait and see to what extent Trump is willing to keep tariffs in place despite the harm it does to the US economy. Despite his pretenses that Americans don’t need our stuff, the reality is that on the contrary they have few other options for crucial resources like oil, lumber, uranium and other minerals, etc. He will stop acting like a bully when he sees that he can get more results by sitting down and negotiating.

4. To reduce our dependence on the US market, immediately implement an ambitious plan to tear down interprovincial trade barriers and help our impacted exporting industries find alternative markets in other countries.

5. Immediately implement a series of bold reforms to make our economy more productive, including: reduce corporate and personal taxes, abolish the capital gains tax, abolish all corporate subsidies, get rid of excessive regulation, remove impediments to the exploitation and export of natural resources, drastically cut government spending, mandate the Bank of Canada to stop printing money and start accumulating a gold reserve to prepare for the global monetary reset (which is likely part of Trump’s plan).

In short, instead of adopting a suicidal strategy to confront Trump, we must do what we should have done a long time ago to strengthen our economy and our bargaining position. The transition will be rough, but not as much as complete bankruptcy and disintegration.

Related Topics:#People'sPartyOfCanada CanadianTariffs TrumpTariffs

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The Limping Loonie: Are Canada’s Pro Sports Team In Trouble Again?

Published on February 3, 2025

Bruce Dowbiggin

With the Canada/ U.S. Tariff War going from talking conflict to hot trade war on Feb. 1 there are numerous predictions as to what might happen if the dispute drags on. As the sides in the Ukraine War will tell you very few of the outcomes so far were foreseen by the sides when the shooting started. That’s the nature of these conflicts.

One immediate byproduct seems to be the continued descent toward 60 cents by the Canadian dollar. If Trudeau and his anointed successor Mark Carney are true to character it will also involve billions in cheques going out the door— a la Covid— to those citizens “harmed” by the Liberals stumbling into a highly predictable and easily avoidable trade war. If past is prologue, vast amounts of that money will disappear as bad actors find a way to access the funds. While Canada’s GDP collapses some more.

For the moment, however, let us concentrate on what Justin Trudeau’s ineptitude might be costing Canadian professional sports teams in American-based leagues. On the purely trivial level it means that your beer at the park/ arena will be Canadian suds exclusively. Not cheaper or better. Just Canadian. Owners will stock luxury boxes with Canadian wine, etc. A road trip to see the Canucks in L.A. or the Canadiens in NYC will balloon, too.

But on a more serious level the showdown between Donald Trump and Trudeau could well return Canadian teams in the NHL to the bad-old days of the early 21st century. Despite efforts then to create a Canadian fund to save teams, two clubs— Winnipeg Jets and Quebec Nordiques— were forced to sell because of a dollar that bottomed out around 62 cents U.S. Winnipeg went to Phoenix/ Quebec City went to Colorado as a result

In Montreal the MLB Expos also moved— to Washington— after 37 years, because no one in Quebec would/ could pony up the money to make up for the declining dollar or repair the disastrous Olympic Stadium. Expos fans then had the cruel fate of watching Washington win the 2019 World Series after the Expos had never gotten that far. (Nordiques fans saw Colorado win two Stanley Cups after escaping Quebec.)

Why were these teams forced to move? Because while teams collect revenues locally in Canadian dollars almost all their payroll and other costs are paid in American dollars. So when you see the Toronto Blue Jays facing a possible US $500 million price tag to keep star Vladimir Guerrero you’re really talking about raising $750,000 million in CDN revenues to meet the demand. Multiply those jumps over a 25-man roster and you’re talking a huge jump in payroll— or being consigned to after-ran status.

While no one is about to hold a tag day for Toronto it will make the Jays’ job of competing in a division with the big-spending New York Yankees and Boston Red Sox that much harder. With a national market of almost 40 million now to exploit they still have resources. But will American players want to play in Canada during a hot trade war between the nations? Now that yahoos fed by a doltish CDN media have started booing the Star Spangled Banner in Ottawa and Vancouver before games do you think that will encourage American stars on teams there to stick around?

But the NHL is where the biggest losses will be seen. Already there have been concerns about the Jets.2 surviving in Winnipeg. Last week it was revealed that after years spent coming back from Covid revenue shortages, the NHL is going to raise its salary cap from today’s US $88 million to as much as an estimated US $115 million in three or four years. The news that players will no longer have escrow payments held back to compensate owners for revenue shortages was greeted with cheers by players and their agent.

The boost in the cap will likely mean that today’s US$14 million peak (Leon Draisaitl) will also advance to somewhere just beneath US$20 million a season. And while that figure is a few years off, teams will have to start negotiating today with their stars with that figure in mind if they wish to retain them.

The test case will be superstar Connor McDavid who is due for a new contract after 2025-26. For the small-market Edmonton Oilers that will mean creating a template that buys him out of estimated salary later by boosting his salary before the cap arrives at its peak. With Draisaitl already pulling down top dollar the Oilers’ resources will be stretched thin to accommodate McDavid— while still paying the rest of the roster.

Could the drop in the dollar produce another Gretzky-like trade for Edmonton when the Oilers were forced to dump the greatest scorer in NHL history to L.A. because his worth exceeded the Oilers’ ability to pay? We chronicle the trade in depth in our new book Deal With It: The Trades That Stunned The NHL & Changed Hockey.

The fate of hockey stars will be only a small piece of any future U.S. trade deals. But they will be highly visible to Canada’s hockey fans. Not being able to satisfy them is a political price no pelican wants to face. But given the current intransigence by Justin Trudeau scrambling to stay in office it is far from improbable.

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster. His new book Deal With It: The Trades That Stunned The NHL And Changed Hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org. You can see all his books at brucedowbigginbooks.ca.

Business

Trump, Mexican president reach deal to delay tariffs

Published on February 3, 2025

Todayville

From The Center Square

By Brett Rowland

Mexican President Claudia Sheinbaum said the U.S. agreed to pause tariffs on imports from her country after agreeing to a border deal with U.S. President Donald Trump.

Sheinbaum said Mexico will immediately reinforce the border with 10,000 members of the National Guard in a move to stop drug trafficking, an issue that has been a problem for decades.

In a post on X, Sheinbaum said she had a “good conversation” with Trump and reached a series of agreements. Sheinbaum also said the U.S. is “committed to working to prevent the trafficking of high-powered weapons to Mexico.”

And she added: “They are pausing tariffs for one month from now.”

Trump on Saturday moved to hold Mexico, Canada and China accountable with tariffs on the top three U.S. trading partners. He slapped 25% tariffs on imports from Mexico and Canada, and added an additional 10% tariff on China for its role in supplying the chemicals used to make fentanyl, a powerful opioid responsible for most U.S. overdose deaths. Trump said the tariffs were designed to halt the illegal drug trade, including fentanyl smuggling.

On Monday, Trump said he spoke to Sheinbaum and a deal was in the works.

“I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States,” the president wrote on Truth Social. “These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country. We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a “deal” between our two Countries.”

Mexico, Canada and China are the top three U.S. trading partners responsible for about 40% of U.S. imports in 2024. Some economists say the move could push prices higher for U.S. consumers.

The United States-Mexico-Canada Agreement, or USMCA, governs trade between the U.S. and its northern and southern neighbors. It went into force on July 1, 2020, and Trump signed the deal. That agreement continue to allow for duty-free trading between the three countries, a longtime practice that Trump ended Saturday.

U.S. goods and services trade with USMCA totaled an estimated $1.8 trillion in 2022. Exports were $789.7 billion and imports were $974.3 billion. The U.S. goods and services trade deficit with USMCA was $184.6 billion in 2022, according to the Office of the United States Trade Representative.