DOUBLE EDGE OF TARIFF THREATS

 As a Canadian writer and blogger, I'd like to share my perspective on the recent tariff increase on Canadian exports.

Imposing an extra 25% tariff on Canadian imports to the US would likely have significant repercussions, primarily affecting US manufacturers and importers. They would face increased costs for parts and imports from Canada, particularly for equipment and machinery, due to Canada's proximity and lower shipping costs .

The energy sector would also be impacted, as the US relies heavily on Canadian oil imports. With the US not producing enough oil to meet its needs, Canada remains the most cost-effective option. Alternative sources, such as Mexico, are not yet developed enough to compete with Canada, and importing from other countries would incur higher shipping and handling costs.

In the automotive industry, the tariff would affect US manufacturers like Ford and General Motors, which import parts from the US, assemble them in Canada, and then export the finished vehicles back to the US. To mitigate the increased costs, importers would need to find alternative, equally competitive suppliers or absorb the added expenses.

This strategy appears to be an attempt to encourage US manufacturers to produce and assemble goods domestically, making American products more competitive. However, this approach may backfire, as the increased costs would ultimately be borne by US consumers and businesses.

Interestingly, a similar scenario played out with China, where cheaper products were offset by higher transportation and shipping costs, leading some American manufacturers to relocate their operations to China.

Despite the tariff threats, Canada's oil exports and other products may not be easily replaced by other competitors, potentially limiting the effectiveness of this strategy and it seems threat is more to US side than Canada or China.