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Trade war with Canada?

New tariffs and duties are impacting Canada not the Chinese as Canada supplies more lumber to the US than all other countries combined was slapped with a 27% tariff in January that has close productions and cost producers half a billion in the first month. Now Canada who supplies 52% of the US aluminum including shared military contracts to pay 10 % tariffs on all aluminum which is vital to US military and key manufacturing. Also Canada must pay 25% tariffs on steel imports which again Canada supplies 10 times as much as China and is the largest US supplier.Canada is also the largest buyer of US steel and US manufactured goods.Not good if Canada turns off the supply of Uranium,aluminum,steel,wood,oil,natural gas,automotive parts,tires etc all which are number one in US sourced buying.

Trump said the days of other countries screwing America are over, so tariff away till they stop cheating us.

Canada is a trade surplus!

Canada imports more US goods than they export to the US and is The US largest by far trade partner.Right idea but wrong target.oil doesn’t fly from Alaska to mainland US.

Ironically since the softwood tariffs the US has significantly increased imports of lumber from Germany and other countries that are already huge trade deficits with the US and imports from Canada have legged behind despite Canada being the only major importing Country running a trade Surplus.

Canadian politician vow to retaliate in a significant and forceful manner that will have the ability to cripple all US automotive manufacturing,housing construction,fuel supplies,cripple US military hardware and aircraft construction as well as fuel for reactors and cut access to radioactive waste storage.and countless other strategic inputs from water to military accesses. Trade war with Canada would be Crippling to devistating to all Consumers.

Maybe we will just make Canada #51

Canadians ain’t much to look at but they sure have a history of winning battles and wars.1812 Pretty sure we ate supper in the white House before burning it down.

TSI, you Trump supporter you, you should be ecstatic about this....

I’m a Trump supporter but can’t support these tariffs it’s a recipe for disaster.China was supposed to be the target however Canada got hit 10 times as hard as China who is 10th on the trade list and Canada is first.We are seeing the economic downturn here already in softwood were private producers like myself cannot either find buyers for raw wood or prices have fallen so low harvesting isn’t viable.Canadian industry is shifting towards supplying China and other countries and reducing or eliminating dependence on US markets.13 vital minerals to US industry are 100% non existent in the US and are 100% supplied by Canada.20% of the world oil is in Canada only Saudi Arabia has more.Trade wars with allies and vital trade partners is bad business.

Maybe there was a LOT more to NAFTA than we were told.

It's not law yet, and the way he changes positions regularly I am hopeful he becomes educated on the impact of Tariffs and as importantly, working to maintain allies like Canada. Frankly, it's embarrassing. Managing this President is a full time job for people around him. He recently congratulated the President of China for becoming President for life and quipped: "maybe we will try that here (in the US)." "Reality Show Republicans" apparently don't worry about these things?

Yes with NAFTA the US sold Canada more goods than they purchase from Canada.Then the first shot fired was a 219% tariff on Canadian built jet aircraft that caused billions in lost sales contracts in the US and Canada to cancel a large order of US built fighter jets.US buying power will be lost as the outlook for the US dollar is now negative and will possibly devalued soon and some believe if a trade war escalation occurs the US dollar would loose its status as a global currency.

The US today informed Canada that they will not recieve any relief and since the 27% softwood tariff already is having economic impacts and 219% tariff on Canadian aircraft have eliminated cross border aircraft orders from either country the Canadian government may act as soon as Monday morning to retaliate in a possibly far more substantial way to protect Canada’s industries.Some commodities may be redirected to countries other than the US as an ongoing effort to sell to trade friendly markets.US companies accessing Canadian raw timber,minerals and oil may face immediate tariffs and levies as a show of sovereignty.This all is very bad news.

I think some people think Canada pays the tariff. A Tariff is a tax paid by the importer. The Americans buying stuff from Canada pay that tax.

The US has more natural gas than Canada, so we're good there. Our problem are the anti's when it comes to fossil fuels.

Unfair Chinese trade and deficits with minor trading countries was only cover for the real target lucrative Canadian resources and commodities.And a country that actually pays its bills.Canada was the target all along Not China!

Correct. Ultimately that tarring will hit American wallets hardest. Higher priced cars, aluminum goods, etc. the great ‘deal maker’ apparently has no clue about American economics.

Tariffs are payed by the Canadians as commodity prices effectively are lowered proportional to the tariff to remain price competitive.In softwood the tariff was passed directly to the producer in the form of less markets and reductions in raw materials prices.

Woe to the nation that does not weave what it wears, presses the wine that it drinks nor possesses its own capability to manufacture.

Exhaustion eventually dooms every great nation that runs a import/export imbalance. Once again at the heart of all things is mathematics and another rising nation waiting impatiently in the wings to take the reins of world power.

Regardless of what you may think, feel and presently see, China is indeed the target in the cross hairs.

The Rock

China only imports 2.6% of the steel imported into the US 10th on a list of mainly US allies Canada sells 16.8% of the US imported steel and 52% of all US aluminum comes from Canada.The tariffs against Canada’s Dairy products,softwood,steel,aluminum and jet aircraft are targeted against Canada not China.Tariffs already implemented and coming virtually have little to no impact on China.All the industries where China dominates in unfair trade into the US are thus far avoiding any tariffs.

Here’s a thorough analysis from the National Association of Home Builders on the lumber tariff effects. Some of the headlines from their estimates include:

9,300 lost jobs and $577 mln in lost wages/year

Increase in the average new home price of $1,300

$1.1 bln fewer dollars invested in single family homes.

Most framing lumber is imported from Canada now with tariffs of 27%.Framing accounts for 30-40% of a homes construction cost.thats roughly 40,000$ on a $100,000 home add 27% that’s a huge added cost to the home owner,If you don’t add the cost to the consumer then they subtract it from the producer.Loose loose situation.

If the intention was to apply tariffs to Chinese imports they would have put tariffs on goods from China but they chose to apply tariffs on Canada instead and specific goods from Canada and specific Canadian industries were targeted.Friends and family usually get a discount.

The US gets nearly all (probably all) of its OSB from Canada.

There are maple leaves stamped on the sheathing of my addition...

Trump is probably setting up for the USA to once again start logging our own timber instead of letting the fires ravage the west. I’m sorry if other countries are incurring a burden, but when it comes to America, our President is putting the citizens of this country first. .

Will there be short term hardships? Of course, but the long term benefits far outweigh the short term.

Everyone typically resists change because the first thing they think about is “How is this going to effect me?” It’s human nature, but everyone must look at the bigger picture...How is this going to effect the country?

As of right now, nobody knows the answer to the last question because it has not been enacted, but it sure has woken everyone up (that cares enough to think about it), and that’s a good thing.

In all honesty, I have worked with wood from all over the world, and prefer all types (soft and hard) from the USA.

TSI, I’m pretty sure it was the Brits that burned the White House, not the Canadians. So are you Canadian or British ? Also, much of the lumber Canada exports to the USA, originates in the USA. I export logs to Canada on a daily basis.

"This may just be step one for an orchestrated plan for talks at the trade table."

“Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed,” Trump tweeted.

Again much of the framing lumber originates in the eastern USA. Most all logging roads in the North Maine Woods, go directly to mills ( Maibec, Blanchette, Fontaine) in eastern Quebec, in St PamPhille, and other towns. Plus hundreds of Canadian trucks each day in New England and mid Atlantic states, back hauling USA hardwood and softwood logs.

Trump is right, it’s not a level playing field, the Canadian Forest Industry is heavily subsidized by their government.

I am biased against NAFTA because of what I do for a living so I'm all for what Trump is saying/doing.

I believe the war of 1812 was against what is referred to as Canada/British one and same.There was also a failed US invasion into lower Canada.The logging trucks in Maine being Canadian should be expected as the largest forestry company in Maine and Maine’s largest landowner is JD Irving a Canadian forestry company.

It appears that TSI was spot on in his assessment of the proposed tariffs, in that it was indeed directed at Canada and not China. Otherwise, how would signing a North American Free Trade Agreement rectify issues with China? Interesting that people in the North East US are selling logs to Canada, and not to US mills, especially given how much lumber prices have gone up over the last couple of years. Anyhow, the bottom line is that tariffs or anything that restricts free trade will result in higher prices for consumers, so any tax breaks that consumers may have gotten will be eaten up in the form of higher consumer prices.

The Canadians during the American Revolution were pretty much split on whether to go with the southern colonies or stay loyal to the crown. The Continental Army more or less peacefully occupied Montreal and laid siege to Quebec. Local residents fought on both sides. The British re-enforced Quebec and broke the siege and drove the Americans back into New York.

From then until Canada gained their independence the Canadian Military was deployed at the will of the King of England. So there might have been a Canadian or two involved in burning the white house down in the War of 1812, but the commanding General, Ross, was deployed from England with 4500 troops to take control of things in North America and those troops were not Canadian.

The Canadians remained subservient to the crown until 'winning' their independence by order of Parliament in the year 1867. Only 3 days before July 4th...

A couple of points about lumber tariffs and US lumber production. First of all, the US has not seen the full effects of the 27% tariff on Canadian lumber yet due to the exchange rate. The US dollar is worth about 1.3 CAD today, when about 5 years ago they were of equal value, so this has offset the tariffs for Canadian producers of lumber. What happens if the US dollar weakens? In response to Mike the Carpenter's idea that Trump will increase logging in the NW instead of letting forests burn, I really doubt that is going to happen. I worked for the biggest private timber owner in the US, and their policy, like other private timber companies was to cut their forests as quickly as possible and make as much money as soon as possible. The result is that they had to shut down many of their mills, not because of fires, or the Forest Service, but due to their own greed, because they harvested the vast majority of their trees, and sold off big chunks of their lands. So here in NW Montana, we are left with public land with forests, and private timber lands with tiny trees on them. Montana would be one barren looking place if the Forest Service had logged at the rate the private timber companies did. In my opinion, as one who managed sawmills that were closed due to shortage of log supply, the blame does not lay with the Forest Service, but with the private timber companies

It was always about NAFTA and a two way Canada US agreement that excludes Mexico but would restrict Canada from doing business in Mexico.China was the patsy.China holds too much of the US debt.The massive trade deficit with China is in vital US products not steel,wood,dairy,aircraft or aluminum.China lends a lot of money to the US and the trade deficit is Interest in the form of trade.

The reason northeast USA logs are exported to Canada, is 1st there are few softwood stud mills in the NE USA, and 2nd, because the Canadian Forest Industry is highly subsidized by the Canadian Gov., Canadian mills can pay higher prices for hardwood logs. Stumpage prices payed for standing timber on crown lands is very low, so they have more working capital to offer higher prices for logs roadside in the USA. This way Canadian truckers bringing products into the states have a back haul to Canada.

I believe most log trucks hauling to Quebec from the North Maine Woods, are registered in the USA.

It’s true some cnd lumber companies are subsidized in the form of low stumpage rates but it varies from Province to province.Irving the largest lumber company negotiated its own private tariffs rate with the US which is contrary to the argument that subsidies are the issue,Irving essentially gets its timber for free from New Brunswick’s Government yet was Give a tarif rate almost 20% less than the industry as a whole.Why likely because the Irving’s are major employers and the largest land owners in the North East US states.leverage

Analyze this......

Once again China is the target and the ONLY target. Who may suffer in the interim will only be temporary, if they suffer at all.

Trump is city alley slick. When he said he was bringing manufacturing back to America he was dead serious while everyone laughed. Not too many laughing now. He means the only THING he knows: BUSINESS.

The Rock

TSI, Your last comment, if true, proves NAFTA is a joke.

nafta should have never been done period.Bilateral US and Canada trade should be free trade.These two. Countries are so dependant on each other it’s ludicrous to think that there’s nefarious intentions by Canada with trade.Fact Canada buys more US products than the US buys from Canada

Canada is posed to cripple the US steel industry and Automotive industry.Canada is the single largest buyer of US steel,Canada is number one is supply to the US as well.The US buys 17% of its imported steel from Canada vs that Canada buys 53% of its imported steel from the US. If Canada retaliates and levy’s tariffs on US steel the US economy would crash.Canada would source steel elsewhere and steel imports to the US would dwindle.there is no deficit with Canada its a Surplus.

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