The trade war between the United States and Canada has begun, in fact. The Trump Administration has launched enemies in recent days by imposing customs rates in Canada products.
To justify the use of this measure, it also applies to Mexico, who wants to strengthen the American president Donald Trump in its north and southern borders, as well as attracting more foreign investments in the United States. It has argued that companies that will put to American soils that will not be customary to pay more.
But does a trade war have advantages? According to the investor investor, Warren Buffett, the seventh fortune of the world, a tax of these prices War action, partly
.
According to him, the participating countries do not earn anything and the purchase capacity of Americans, worn more permanent inflation than anywhere else, these customs fare will begin.
It is not a fairy teeth that will pay (these customs duties)
He quipped.
The Warren Buffett employer does not think that a commercial war has advantages. (Archive photo)
Photo: Getty Images / Saul Loeb
Price King
One of the influences of Donald Trump is the Republican President William McKinley, called Price King
XIX. By the end of the 19th century.
The current occupier of the White House does not hide his admiration for this imperialist and prosperous era of the United States, called Gilded age“Golden Age,” after the Civil War.
Donald Trump conference in front of his talk on Tuesday (photo of the archive)
Photo: Associated Press / Ben Curtis
In the 1890s, our country was probably because he was ever in price system
said Donald Trump in the 2024 election campaign.
He forgets to kill him before dying, in 1901, president McKinley completely changed the rifle and wanted harmonious trade relations for his second term.
Trade wars are not profitable. The policy of good and friendly relationships will prevent reprisal
At the time he pointed out when the world trade was developed.
William McKinley (1897-1900) created American “imperialism”.
Photo: US Congress Library
In addition, if the United States do not impose mutual prices in all countries in April 2, according to the Trump Administration, it will probably happen for our American neighbors.
In 2025, I think you can also have a focused economy that has also been focused 150 years ago, I can’t believe it. We don’t earn a trade war. A country cannot go to war against everyone and think about winning
The main economist of Desjardins has published a note on this topic Francis.
But what are the long prices issued by the effect? Here are some examples.
“A country can not go to the war against everyone,” he says, “says generous Francisco economists.
Photo: Radio-Canada / Felix Derroches
Economic uncertainty
We have already seen and we have seen one of the first effects of war in the economy. The only prospecting of the Customs Tariff Tax has been created uncertainty. Companies have stopped investments and hired on ice waiting for answers.
Another notable effect: Canadian exports increased tremendously in December. American companies wanted to store goods in case of customs duties tax. But the return of the pendulum will come in the coming months.
Losing orders
Customs prices are now established, and the effect will feel fast, especially manufacturing in export sectors.
In various regions like Beauce, there are no effects. Wooden sector suppliers have already lost orders. American importers are trying to go to other markets.
According to the sectors, there are american companies that see a conclusion about profitability with prices
It emphasizes the generous Francis.
American companies already see the effects of pricing obstacles, according to generous Francis, in the Movement of Dejajardins. (Archive photo)
Photo: Radio-Canada
Frequencies and closures
Less contracts and less promised means to be released in companies. The Prime Minister François Legault has already calculated losses 100,000 to 160,000 jobs, if necessary for long customs.
Again there, according to sectors, Em And companies can decide to move forward with dismissal.
According to Desjardins, the most fragile sectors are main metals (including aluminum), food and drinks, chemicals, machinery and aeronautics. Smaller companies, under the influence of the American market, should closely close in the coming months.
Increase unemployment rate
The slowdown of production should lead to the Canadian work market in the same route, also emphasizes disasters.
In January, on a Canadian scale in January (creating 76,000 jobs, the fall of 0.1% to 6.6%), the unemployment rate should start upwards.
With gradually increasing the number of dismissal, it could reach 8% at the national level, according to customs tariff taxes and depending on the time.
With price imposition, inflation should return to Canada.
Photo: Getty Images via Istock / Lordhenrivoton
Inflation
To set customs prices and counters, prepare to pay more products! Inflation will start upwards, but never 2022. At the level seen in the year.
The trade war inflation should be pushed beyond 3% in the annual change in Canada 2025. Depending on the Year, the plans of the plans.
For Americans, it is the same scenario. It should be understood that prices are set by American importers of Canada products that pass a part of the invoice. With only North American prices, the effect would be 0.6% in our southern residents.
And even if each American company decides to attend internal or international suppliers, it will be difficult to supply supply chains, and it will cause pressure on prices.
With prices, most economists plan a recession in Canada.
Photo: Getty Images / Witthaya Passongsin
Economic slowdown or … recession
The trade war is a “recessive” more than a inflationary war. This means that it will cause more contraction of the economy than push prices.
The Canadian economy, therefore, could change the recession in the second quarter of 2025, especially as a result of the fall of exports to the United States. This recession can take several quarters, calculating the disaster.
And what kind of background could we see? According to the Canadian Commerce Chamber, the economy could hire 2.6%. For the royal bank, the decline will reach 4.5%. The United States would also see gross domestic products at least 1.5%. So it will be difficult to avoid recession in two countries.
Affected relationship
The word Trump desires to weaken Canada and the words of President Trump even more, he said: 51. American State
Do great damage to friendship between the two countries.
He broke the trust between our two countries in a deep way
On Wednesday, Danielle Smith, Danielle Smith remembered the Prime Minister.
In recent weeks, American and Canadian national anthems fall on both sides of the border, especially before hockey matches. (Archive photo)
Photo: Getty Images / Bruce Bennett
In recent weeks, national Hymns are alert to both sides of the border. Politicians are insulted. Canadians don’t want to travel to the United States or buy American products.
The image of the United States has never worsened since Donald Trump’s power reached. According to the Canadian Angus Reid survey of 2005, 58% of the respondents had an image of the United States in February. This rate is 24%, a historical slide.
2025-03-06 09:00:00
