"The bottom line with both Mexico and Canada is simply this. Life will go on, we will again be friends and neighbors, and nobody is going to be absorbed by anybody. We will however, live on a more level playground.
I am going to go out on a limb and say something unkind about the Trump administration. And it has to do with tariffs. Tariffs are not new to us - we have seen them for years. But this new round of tariffs, starting on Wednesday, could shock our economic system - until they work. Are they going to be bad? Hopefully, not. But here is where I think the Trump team needs a "do better". Explaining more in detail "the why" we are doing this.
Are we adjusting our tariffs on Canada and Mexico to get their attention on illegal immigration and the flow of fentanyl over our borders? I think yes - do a degree. But more than that, we have a huge imbalance of trade between our two neighbors - Mexico and Canada. Some of the tariffs that Canada has put on our dairy products has shut us out of the Canadian market. Is that fair? I thought Trump's solution had merit - reciprocal tariffs. Whatever we get charged, we also charge them. Period. If that is not fair, somebody smart needs to explain that to me.
If tariffs will lead to more onshoring of our products, I really understand that. Globalism has hurt us from a national security standpoint. We found that out in spades during the Covid shutdown. Trump found out also, that many of our meds are made offshore. Many by unfriendly countries. In addition, much of our manufacturing is done offshore. We have become assemblers, not manufacturers. The Trump team wants this fixed and fixed soon.
Here however, is the "bump" in the road. Some of our offshored manufactured items are made at slave labor wages - like $3/hour. When we bring them back onshore and build them with union labor, we might be paying $30/hour to build the same item. The plus up, is getting good paying labor jobs back in the USA. The downside will be paying more for some items which will be made here again. Trump wants anything made here to pay zero tariffs. Things which continue to be made overseas, will pay high tariffs. This - is the great tariff balancing act.
In the meanwhile, we seem to be having a spat with Canada over how things are changing. The fact of the matter is, we have been playing "big brother" with Canada for some time now. Or as some call it, Canada's "Sugar Daddy". Why is that? Canada is inches away from pure socialism, and it is not working well for them. That is why Trump has teased them about becoming our 51st state. Life would be better for Canada as part of the USA. With Trump, that was tongue in cheek. With Canada, them were fighting words!
The bottom line with both Mexico and Canada is simply this. Life will go on, we will again be friends and neighbors, and nobody is going to be absorbed by anybody. We will however, live on a more level playground. Everybody is going to have to adjust to that. We are not out to screw anybody (especially our neighbors), nor do we want to be screwed. This is the new reality. We all need to get used to it.