US Tariffs on Canada 100% threat & Sometimes I like to believe in fairy tales

In the recent coaching call, I mentioned that Canada is entering into the EV tariffs reduction in exchange for the canola seed tariff reduction would trigger USA.

The main concern is that North America together imposed 100% tariffs on China EV because the industry is heavily subsidized by the Chinese government to achieve a large market share in the world.

North America is the last stronghold against China's cheap EVs.

Within weeks,Trump announced 100% tariffs on Canada if Canada goes through the trade deal with the US.

This is not surprising to me, given we talked about this during the coaching call in Investing Accelerator

Now, Canada is stuck in a pickle.

Canada can go through with China, which may uphold their agreements better andhurt the automotive industry in Ontario (which is dying anyway because of previous US tariffs) and help Canadian canola farmers.

Canada can appease the US for now, but Trump can always threaten with more tariffs anytime he wants.

However, there's no guarantee US wouldn't impose tariffs as a threat later down the line (which seems to be the recurring weapon).

At some point, the story becomes the boy who cries wolf.

A man's words can no longer be trusted.

Living in North America, it is easyto believe that US has the largest economy and hence couldn't be alienated.

However, this is only partially true

US GDP: $30T (largest in the world)

EU GDP: $20T

China GDP: $20T

I look at all the European countries together as EU instead of individual countries.

EU and China are not that far off from US in terms of GDP.

If US alienates itself more in the future, EU and China will have an easier time catching up.

This would lead to a significant change in world order.

Cheers,

Eric

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Eric Seto

Chartered Professional Accountant (CPA)

Chartered Investment Manager (CIM)

Founder of 5MinInvesting.com

In February, my goal is to help 20 people with no financial background to learn long term investing and monthly passive income strategies for retirement.

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