Never did I ever... Let me complete this sentence.
Never did I ever think that Trump would make such a move and on Canada too, aren't they supposed to be buddies?
Everybody's getting tarrif now I suppose. Canada, Mexico and China are three of the most pissed of countries at America right now and it's all because of the imposed Tarrifs. It was made official not long ago that a 25% Tarrif is imposed on Canada and Mexico whereas China is getting a 10% Tarrif.
The people to suffer the effect of this is not just the manufacturers in these countries but the direct effect will be on the American citizen. If you want to buy a car in America that's made from Canada and shipped to America for let's say $100,000, thanks to the Tarrif you'll have to pay $125,000.
The reason why this would happen is because the manufacturers will put the cost of the Tarrif on the price of the product so the end user will pay for it.
You may be thinking why would Donald J Trump with all the smart people in his government do such a thing and risk good relations with countries like Canada.
Trump isn't necessarily trying to start a war and he's not dumb, he's got an actual Math to this initiative.
One of the primary reasons why he decided on a tarrif at this rate is the objective of changing the consumer behavior of the average American.
You see, Trump knows tarrifs will only make things more expensive for the American people but it's not all things, it'll be things from the countries hit with the tarrifs. If a Chinese or Canadian product in America is way more expensive than an American product in America, it'll influence the people in America to purchase American made goods or products because those don't have a tarrif on it, ergo are much cheaper.
That way, there's more buying and selling of American products in America. That's one thing, the other is how this Tarrif will force outside industries to establish branches in America to escape the tarrifs.
So by doing, in the long run, there'll be automatic and eventual economic growth in America.
But this is a double edged sword and unfortunately this move is coming back to bite America because although it's smart, it's going to cause a negative effect for the businesses in Canada, China and Mexico.
These countries clearly don't like the decision and have shown they don't like it by imposing their own tarrifs against America as well.
Canada has recently issued their own 25% Tarrif on American goods, Mexico has said they'll do same but haven't announced the percentage yet, China will be filling a lawsuit against America at WTO (World Trade Organization).
What makes this a major problem for these countries is that a huge fraction of their GDP comes from exports of goods to America so the imposed tarrifs is really going to mess with their GDP.
Another reason why Trump is doing this is in hopes that he'll force the countries to do what he wants them to do.
The problem is that while Mexico and Canada have a huge portion of their GDP coming from exports to America, America has a relatively smaller percentage of their GDP coming from exports to these countries. This only means a tarrif trade war between them will hit those countries harder than it'll hit America.
That's why Trump is confidently not backing out on this decision.
Also, there's a high chance the tarrifs will be imposed on more countries and I bet Europe will not be spared from this hit.
Honestly, this is exactly how world wars begin. I hope this doesn't cause a much bigger problem, especially between America and Canada.
At this point, Canada which is considered neighbor to America has been hit with tarrif and Russia which is considered an enemy country is making cool deals with America so the whole Ukraine war can end. See where I'm going with this?
Trump's decisions are not looking good I the eyes of the other countries and if this keeps going on, it may only get worse.
So I ask you this guys, Is America Winning?👀
We'll be winning so much we'll be tired of winning - Trump's words not mine, lol