President-Elect Trump, Prime Minister Trudeau |
For the second time in eight years, Trump will be inheriting a thriving economy from a Democratic President, yet seems bound and determined to wreck that economy with poorly-thought-out tariffs.
Canadian government officials, including Prime Minister Trudeau, have seemed reasoned, nonhysterical, dealing with President-Elect Trump's foolish tariff notions.
They realize something that escapes Trump, that they hold all the cards in this transaction as Canada currently supplies the U.S. with 60% of its crude oil. Also, 99% of Canada's exported natural gas goes to the U.S., 2.99 trillion cubic feet in 2022.
Canada also sells the U.S. annually 52 terawatt-hours of electricity, large parts of the power grid of New York, Vermont and Maine, power that reaches 30 states in total.
And Trump wants to add an extra 25% to all of that for U.S. consumers to pay? Someone needs to get through Trump's thick noggin to explain to him how tariffs work.
To be sure, Trump's proposed tariffs would wreck havoc with the Canadian economy, but also do considerable damage to the U.S. economy, spiking inflation, costing jobs and wages.
While Trump's first term included cabinet members that could talk him down from outlandish notions, this time around he's going totally for "yes" men, sychophants, without the knowledge or experience to push back on his uninformed foolishness.
Your numbers on Canadian crude oil do not tell the full story. That oil is refined in Texas because it is a heavier crude which cannot be refined in Canada. In fact, the refined crude is sent back to Canada. The US is dependent on no one when it comes to oil, The pipelines were a con. They were designed to allow Canadian oil to be refined in Texas and then sent back to Canada. None of this would be subject to tariffs. In fact, because so much Canadian and other foreign oil is refined in Texas for export to the country of origin, the refining of US crude remains delayed, thereby costing us more for gas. https://oec.world/en/profile/bilateral-product/refined-petroleum/reporter/usa
ReplyDeleteThanks for that response.
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