President Trump announces a new trade deal with Mexico excluding Canada

Will be interesting to see how Canada responds to this. The deal with Mexico won’t take shape until around December. I hope Justin Trudeau’s Liberals take into account that the companies dependent on the U.S that are currently located in Canada may simply move to the United States. It’s happened before, a lot of Canadian companies left for Mexico and China years ago. The benefits for companies being in Canada is the lower loonie, with Trump’s current tariffs he already took away that Loonie advantage.

So if the corporatists in Canada want to play hardball please be reminded that any leverage Canada has is being minimized by the delay. What I’ve been saying for month’s now regarding Canada is that the longer this plays out the more this will be a political platform even the Democrats in the U.S might be forced to embrace. Tariffs are a tax and Leftists love taxes, so again I advise you Leftists and Corporatists in Canada to give some serious thoughts about how you plan to move forward.

This is why I thought a tit-for-tat tariff strategy was a stupid idea because Canada showed its hand. Trump has Canada cornered with this trade deal and the Democrats in time may not even want to reverse Trump’s policies as these tariffs could be used for them to pay for more social programs in the United States. Furthermore the more this makes news, the more you’ll find American’s researching the actual details which aren’t good for Canada, because America doesn’t have a supply-side management system.

Interesting times ahead.