Canada – USA Trade War begins
After many chest-thumping press announcements and anxious moments for businesses and everyday folks alike on both sides of the border, the dreaded announcement was official. Canada and the U.S. are in a trade war. The later slapped a 25% tariff on Canadian exports, and the former imposed tariffs in kind. Just like that, two of the best friends were at each other’s throats. As the heads of state from both countries exchanged “pleasantries” on X (also known as Twitter), the common person in me was left wondering what this means for me.
Today, I saw a social media post from our Prime Minister, Justin Trudeau, stating, “Now is the time to choose products made right here in Canada.” I couldn’t agree more. It seems the businesses here have also heard him, at least some of them. Yesterday, when I went to buy groceries, it was a pleasant surprise to see Canadian produce marked as “Local” in big, bold letters. Obviously, I picked the local produce without even considering the price difference with the American alternative. Next week, when the tariffs come into effect, and days later, when Canadian tariffs on imports are applied, the reality of choosing my food based on where it is grown will become more profound.
This week’s grocery budget was not shocking, but I was left wondering if I would have to tighten my belts even further when the real effects of the trade war start showing up. I have a decent salary, so tightening my belt means something different for me than for those who are already struggling. I feel sorry for all. And all this for what? The hubris of an individual? The aspirations of disillusioned 77 million? By the way, the 77 million are not immune to this war. I wonder if they realise what’s to come.
I have friends in the States who lament the trade war’s development. They will be facing the effects of not only Canadian Tariffs but also those coming in from Mexico and China. Come April, the possible retaliation coming in from the European Union might have a greater impact on American consumers. Some real interesting times are coming in for us to witness.
Today, I was deeply engaged in forecasting the coming months. The Canadian dollar has already dropped by 3 cents, meaning my American investments hold more value. However, market futures have declined in both countries, so that negates my 3-cent gain per dollar. I’m likely losing money right now, and I don’t have the stomach to calculate the loss. The experts also predict a recessionary effect. What does that mean?
I am not in the most secure position at my work. I work for a bank, and they are among the worst of the corporate evils. The ones that are willing to cut 10 jobs for every dollar less in profits. So that worries me, too.
Today, I told Mrs. M that I would cancel any international travel this year. That means I won’t be meeting her this year either. I have to make this dreaded declaration to my family as well. But in their minds, it will seem unreasonable. They don’t understand unaffordability or insecurity. That’s odd because their financial security is only relatively recent.
Anyway, I end this Sunday night on a sombre note. I’m worried about the shocks and surprises of the coming weeks. I’m already stressed out about going to work tomorrow. I look at Mr. O, who is not interested in his boring food. He expects his expensive pouch of chicken broth with chicken and tuna strips. Little does he know that his favourite food comes from the USA. In a few weeks, I might not be able to purchase them. Then, I would expect Mr. Trump to sit down with Mr. O and make him see the reason.