Canada responds to U.S. steel, aluminum tariffs with ‘countermeasures’ of its own

Below you should be able to watch the video of the Liberals taking decisive action against The United States regarding trade.

If you’re unable to watch the video you can click the link below, watch and read it for yourself.

http://www.cbc.ca/news/politics/trump-steel-deadline-1.4685242
More details of the deal can also be read in full by following that article.

My thoughts are well, the problem with tariffs are costs and either way Canada loses more. The hope for Canada under a trade war is that America gets a new president who makes Canada a priority. I’m open to seeing how this all unfolds, but based on what I already know, Canada currently isn’t in a good position to negotiate. Because of the American military, Canada’s military defense spending is much small than the United States, being that Canada already charged a tariff on U.S made goods, most Canadian businesses have used Chinese manufacturers more than U.S anyway so the party that really gets hurt in this trade war from my standpoint is Canada.

Americans are more entrepreneurial than Canadians are, also because there are more U.S States than there are Canadian provinces, American companies have more flexibility with how they operate their businesses. Because currently, Steelworkers in Canada have more entitlements than do American steelworkers, this new competitive advantage Trump has given to U.S steelworkers at least temporarily gives them an economic competitive edge on Canada.

Now the problem with U.S Steel companies has always been that the moment they’re given a monopoly on their industry they raise prices almost immediately. So this is the one area where things could get interesting because as prices rise economist will point to Trump as the main cause of these price inflations. That is why I say that if I were Canada I wouldn’t have allowed things to go this far, because now what Trump has is the ability to wait it out. This also allows other Steel manufacturers to fill the void Canada is leaving, plus I hate to say this to Canada but a Canadian steel company moving its operations to America isn’t a far-fetched idea.

Interesting times ahead.