Have American consumers pay more for their products to cover the tariff, then a few months later the tariff is deemed illegal, then the big corporations get a refund which they do not pass back to the consumer.
It’s more devious than that. If you create a shortage the price of things increase. A 50% tariff is so unreasonable you may as well say you’re just not importing that product any more. Let’s say American companies control 90% of the market share of a product Canadian companies have 10%. Eliminate the Canadian products from the market, and there’s an instant shortage. Following the supply and demand model, prices increase on that 90% they produce. That price increase is pure profit.
Theoretically if the tariffs were permanent American companies would expand and eventually replace that missing 10% that used to be supplied by Canadian companies. But no one for a second believes any Trump policy is permanent so no one is investing anything to increase their production. So it’s just collecting extra profits while there’s an artificially created shortage.
But the timing of this makes me think that Trump actually expected Carney to cave. If he’s really to do some kind of “economic D-Day” (assuming that means tarriffs on countries that trade with Iran, but who knows?) it’s incredibly stupid to start a trade war with Canada at the same time. Also mid-term elections are coming up, so it’s really stupid to randomly start a trade war right now. So while there is incentive there for wealthy people to make money, I think this one is more about Trump just fucking up.
Squirrels bury nuts for winter. Granted, they often forget where but their solution is to bury so many they will inevitably find some again. This is a level of planning and self-understanding that is so far above Trump and his administrations head it might as well be an alien concept from a different galaxy.
So we will need you to apologize to the squirrels because your statement is highly insulting to them.
It’s more devious than that. If you create a shortage the price of things increase. A 50% tariff is so unreasonable you may as well say you’re just not importing that product any more. Let’s say American companies control 90% of the market share of a product Canadian companies have 10%. Eliminate the Canadian products from the market, and there’s an instant shortage. Following the supply and demand model, prices increase on that 90% they produce. That price increase is pure profit.
Theoretically if the tariffs were permanent American companies would expand and eventually replace that missing 10% that used to be supplied by Canadian companies. But no one for a second believes any Trump policy is permanent so no one is investing anything to increase their production. So it’s just collecting extra profits while there’s an artificially created shortage.
But the timing of this makes me think that Trump actually expected Carney to cave. If he’s really to do some kind of “economic D-Day” (assuming that means tarriffs on countries that trade with Iran, but who knows?) it’s incredibly stupid to start a trade war with Canada at the same time. Also mid-term elections are coming up, so it’s really stupid to randomly start a trade war right now. So while there is incentive there for wealthy people to make money, I think this one is more about Trump just fucking up.
He’s got the intelligence and long term planning of a squirrel going for that one acorn in the middle of the dog park.
Squirrels bury nuts for winter. Granted, they often forget where but their solution is to bury so many they will inevitably find some again. This is a level of planning and self-understanding that is so far above Trump and his administrations head it might as well be an alien concept from a different galaxy.
So we will need you to apologize to the squirrels because your statement is highly insulting to them.
So you’re saying they… “Flood the zone”?