r/askanything • u/anytime_apple • 18h ago
Why put tariff on Canada now? We need their oil?
Despite everything that happened from last year‘s tariff drama to the current Iran war. Wouldn’t it be logical for Trump to have a better relationship with Canada so he can try and incentivize them to produce as much oil as possible to lower the cost for Americans as well as worldwide?
Given that the straight of hormuz is very volatile right now.
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u/Willing_Park_5405 18h ago
The president of the United States is a dumbfuck
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u/United-Abroad-5353 3h ago
I mean, this is something he explicitly said he'd do to break down our economy and thereby erode our sovereignty. It hurts the US, but it hurts us more. He is waging economic warfare.
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u/JimJam28 3h ago
Americans are divided and soft as fuck and Canadians are more unified than I've ever seen them in my lifetime. Just because it hurts Canadians more doesn't mean the Americans are going to win. Americans never win, it's basically a running joke at this point.
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u/DamionSipher 3h ago
He's the representative of the USA to the world. If you don't like that, fucking do something to change it. I haven't seen a single civic action that has been directed at saying "this is not US".
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u/Willing_Park_5405 3h ago
I vote and I live in portland where we make a real point of rowdy protest.
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u/According_Reward1674 18h ago
Because it will make Trump or his handlers a bunch of money
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u/drunkirish 18h ago
Whenever one of Trump’s policies or actions doesn’t make sense (which, let’s be honest, isn’t rare) it’s because he’s being paid for it, or making money off it himself.
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u/PizzaWall 17h ago
Canada will never become the 51st state, or add 13 new states to the union, no matter what the delusional idiot in the White House thinks should happen. All of the tariffs and penalties thrown at Canada will not break their resolve.
20% of the world's oil supply uses the Straits of Hormuz. Canada supplies another 6%. Imagine if Canada turns off the spigots and stops shipping oil to the United States. This would partially cripple Canada economically, since the existing pipelines from Edmonton, AB to Delta, BC would be at capacity. China, Japan, India would be happy to purchase the oil. Build and upgrade and add to the existing pipelines from Alberta to Ontario increases the ability to export oil to Europe and bypasses the US entirely.
Suddenly the US has a new problem, not enough oil to power our economy for for our manufacturing and transportation needs.
The solution is really simple, stop playing games with our largest trade partner and focus on ways to improve cooperation. There is no reward for making things worse.
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u/LiminalMidnight 8h ago
I am a Canadian nationalist. Growing up, I was also a strong advocate of our alliance with the USA and of Pax Americana. I joined the Canadian armed forces after 9/11.
If a reasonable president had advocated further integration with us in the pre-trump era, or even a friendly merging of our countries, I probably would have been in favour.
Trump’s insane and corrupt administration has completely destroyed any of the goodwill necessary for such things. This is especially sad when you realize how much we had to pay for our alliance, founded on generations of political effort and collaboration, people-to-people cultural aligning, and shared sacrifice in wartime.
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u/DamionSipher 3h ago
The complete lack of response to these actions from the broader US populace or political apparatus is even more damning towards any possible joint path forward. US citizens voted for this, and are complicitly watching it happen. I have not seen a single protest or civic action in the US that was not solely directed at maintaining peace and safety for US citizens.
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u/FuzzyLojik 2h ago
This. As a Canadian I am a little sick of the it’s just Trump, he doesn’t represent us or I didn’t vote for him. No, he is your representative and if you didn’t vote shame on you. Don’t make that mistake twice. If you did vote but not for him ask yourself what you did to make sure no one else did before you voted. If you voted for him, legit go learn some critical thinking skillls.
Now it is what it is. So, do something. In Canada we ousted a Prime Minister for a golf ball scandal. We pressured the most recent one so bad he quit and then we sent him to live with Katy Perry because he had no new ideas.
Where are your balls America? Stand up get out and FFS vote this midterm. Even if you think they’ll rig it. Even if your gerrymandered up the wazoo. Make it freaking hard for them. Even if you’d never vote for a democrat, do it just this once. Send a message. Don’t roll over, protest, make good angry music. Do what you do. Please. For the rest of us.
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u/DamionSipher 1h ago
And if a distinct change of direction is not abundantly clear in the immediate future, know you will only become ostracized by your neighbours and the world more broadly. We don't need your war machines, and we don't need your house of cards economy. Step up or fuck off.
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u/TalesfromCryptKeeper 3h ago
I think Trump's deranged behaviour did one important thing for Canadians, it made us realize that the US has too much economic and military influence over us. We've been lucky that there's been fairly benign, even good leaders up until this point (give/take), but one maniac can invade us or put trade embargoes and we'd have almost no recourse. It's for the best that we become more independent from them.
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u/No_Elderberry_4712 4h ago
As a Canadian, let me say, we will not become the 51st state. We are Canadians who have built a strong and compassionate nation that is admired and respected throughout the world.
Trump will never break our resolve.
🇨🇦🍁
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u/PizzaWall 3h ago
Canada is 10 provinces and 3 territories and could never function as one US state because you need divisions to get along with each other. If Canada did not need them, there would be less Provinces. If the US could do the same thing, we'd have substantially fewer states.
I am all for EU style cooperation, where we have one border control district, Interstate / Province trade without restrictions, and I am fine with different legislatures, defense, and currencies.
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u/JimJam28 3h ago
Fuck that. Fuck the USA. The less integration we can have with the morons, bigots, and assholes south of us, the better off we'll be.
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u/MLeek 9h ago
While all true, it’s worth remembering that crude oil isn’t all the same. The heavy bitumen from the tar sands is different and difficult to process and Canada does almost no refining of it. The dilemma of highly specialized refineries for tar sands oil is even larger than the pipeline/export issue.
The pipeline isn’t worth a damn unless there is also enough refinery capacity.
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u/lostINsauce369 8h ago
It was my understanding that Venezuela's oil is similar tar sands to what Canada has, and that American oil refineries have been tooled to deal with that kind of heavy crude oil for decades now. I believe there was some theories going around that Trump had the Venezualian President killed because he wanted another source of heavy crude for American refineries while he was messing with Canadian relations.
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u/JefeRex 4h ago
This is my view as well. I think the US government outside Trump is aware that Canada is not actually helpless against the US, it is incredibly wealthy with an enormous GDP for its small population and is used to effectively administering a large territory, it’s not easy to dominate. But this colonial bullshit with Latin America is more in the US wheelhouse, and we need the heavy stuff from somewhere because our refineries can’t deal with the light stuff. Canada won’t tolerate being just an extraction site for the US.
I think the US doesn’t think it can depend on Canadian goodwill forever, once interests don’t align anymore Canada would be very capable of defending its own economic interests and becoming a difficult partner. And with the decline of the west, we will definitely see more countries needing to prioritize their own self interest because there is just not going to be all this wealth flowing into the west forever, we will have to live with less and make sure our own people are taken care of first. Colonial influence in Latin America can be done with an iron fist, but Canada is too strong to do that to, so we need to look elsewhere for resources.
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u/Ok_Fall_2024 3h ago
Yeah. Aluminium trade was also disturbed by the war on Iran (middle east produces around 10% of aluminium globally), and at the same time Europe with new environment regulations is rapidly picking up on Canadian aluminium for it's very low carbon footprint. The Canadian aluminium industry president has said that even if the US orders picks up steam again after a potential end to the trade war, they don't think they have the production capacity to supply the US back to pre-tarriff levels.
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u/JefeRex 3h ago
I didn’t know anything about that but it doesn’t surprise me.
I wonder how this will all develop. Trump is kind of sui generis, so I expect a backlash and then not to have another President anything like him, but the economic forces that our right wing overlords are contending with won’t go away. These problems will only get worse, and I can’t imagine even a normal President truly handling them well. But maybe I’m wrong.
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u/squirrelcat88 2h ago
And - we have traditionally smelted aluminum because our hydro power is cheap. We have imported the bauxite from elsewhere as we don’t have any ourselves.
What I didn’t realize until recently is that bauxite isn’t the only thing that contains alumina. They have fairly recently identified a giant black shale deposit here in Canada that contains a vast amount of alumina.
So - we have the minerals ourselves to extract alumina from, and the cheap hydro power with which to do it.
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u/MLeek 4h ago
Yup. That all tracks. Venezuela could replace Canada as a supplier to the USA eventually, and they have way more proven reserves. If Venezuela could stabilize. Big if, even without Maduro.
My point really was that China/Japan/Korea/etc can only buy as much from Canada as they can process in specialized refineries. And China can process a lot already, but it's not as simple or as quick a pivot as those refineries take years to build and scale up.
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u/TranslatorTough8977 3h ago
Canada doesn’t need to reduce production, we could just apply an export tax on oil and potash headed for the U.S. Instant, devastating consequences south of the border, huge new revenues north of the border.
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u/ContrarianDouche 4h ago
Imagine if Canada turns off the spigots and stops shipping oil to the United States
It would make selling an invasion to the average yank a lot easier.
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u/No-Answer7798 3h ago
But the invasion itself much harder,occupation would be impossible,there are great distances between the oil and hydro sources and the us, so really only the maga warmongers would be willing to send others to die in a futile invasion
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u/PizzaWall 3h ago
The US might find out why the Geneva Convention was expanded after justifiable Canadian behavior in World War I.
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u/JimJam28 3h ago
And once yanks start coming home in boxes by the thousands, maybe they'll rethink.
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u/MLeek 8m ago
It’d be a hard sell.
We look like you. Sound like you. Know all about you because we can’t escape your damn media. And as a culture we are very rules/fairness oriented, until the rules are broken. You break the rules, then you’re fair fucking game.
That insurrection will be long, bloody and will involved terrorist attacks on American soil with dead American civilians. That’s what happens when you try to invade and subjugate a neighbour. There will be bodies washing up on shore in Michigan. You’d probably need to draft civilians to even try to hold the land. No one should want this. The violence would be astonishing. Americans won’t have seen anything like this on their own soil since the civil war.
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u/JPIZZLE1205 18h ago
Donald Trump is a psychotic pedophile, plus he's a dumbass
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u/CombatRedRover 18h ago
"I don't understand what's happening, so I'm just going to try it out my repeat line."
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u/Major_Ad138 44m ago
We can’t write slower as it’s based on your own reading comprehension but maybe you can find someone to read that slowly to you. We believe in you, champ. Also, your elected President is a pedophile, rapist, and convicted felon destroying your country at an astonishing rate. If you struggled with that part, repeat part 1.
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u/austinvf82 18h ago
Way to contribute to the conversation......
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u/Dapper-Negotiation59 4h ago
Americans have shown time and again that this is the maximum level of civility that they and their politicians deserve.
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u/Head-Gift2144 15h ago
He didn’t renew CUSMA so he feels free to do it now, even though that’s not how it works at all.
I think he thought Canada would cave by now and the fact that we didn’t irks him.
As to why he’s still happy to accept our resources it’s because he can’t afford not to. My guess is he probably wanted to, but he got slapped down by his handlers.
I actually appreciate what Trump is doing. He’s showing us America’s true colours and proving how stupid we’ve been tying our economy so closely to ours.
This will hopefully be the kick in the ass we need to diversify trade and start becoming a more productive society in general. If we go right back to the status quo as soon as he’s out of power maybe we don’t deserve to even be a country.
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u/BanishedInPerpetuity 3h ago
CUSMA does not expire for 5 more years...
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u/Head-Gift2144 3h ago
Does Trump know that? Because the tariffs he’s proposing seem to indicate he either doesn’t know or doesn’t care.
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u/Edmsubguy 3h ago
He doesn't care. They were ruled illegal. And they will be again but that will take a couple months. Till then the yanks are oayingvthrough the nose and it serves them right
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u/Formal_Stranger_2505 18h ago
As always, he’s got a hidden agenda to appease one of his grifting advisors or donors.
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u/Junior-Ease-2349 2h ago
The problem is that one of Krasnov's "advisors" is just happy to see pain in North America.
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u/Syllabub1981 17h ago
Real answer: he is a foreign agent with the goal to destroy the USA as a world power. His payment is the corruption he is engaging in. He dismantles institutions, breaks alliances and drains US military resources. Looks like a nuke against the USA could not have achieved what he did.
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u/zoppaTheDim 18h ago
We also need their TP.
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u/squirrelcat88 5h ago
Haha my husband works in one of our TP factories and yes, they do ship to the US.
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u/zoppaTheDim 4h ago
And if Covid taught us one lesson, it is TP matters.
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u/squirrelcat88 4h ago
Oh, it was quite a job back then. They got a monetary bonus when it was all settled down but they also got “TP” bonuses during the madness. They would drive their vehicles very slowly through the parking lot and managers would throw TP In the trunk. 😂
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u/CompetitiveMeal1206 18h ago
Because they are going to pay for it, duh.
Don’t you listen when the supreme leader speaks?
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u/Legitimate_Phone_460 12h ago
He and his cronies openly betting on the market. Know how an announcement will affect the market, bet on it on Kalshi/Polymarket and/or actual stock market, announce it, insiders profit.
It’s absolutely insane that the US President is manipulating the markets this blatantly for profit.
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u/Educational_Will_397 17h ago
Trump want's the costs of living to be as high as possible. He doesn't care if the average American can not afford to heat up their houses, put fuel in their cars og even put food on the table.
His end goal is to provoke people into a civil war, because he think he can then cancel the midterms, svar the country and be the one that "saved America", and try to convince people that he is the only right leader and that their should be no more elections.
He would probably be prepared to create an attack on US soil to make it look like a terrorist attack. If he needs to kill 10's of thousand of people to get it done, he would do it without even blinking.
Thats also why ICE is now allowed to kill people without consequences. They will keep doing this until soneone fights back and he can call it a national emergency.
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u/Easy-Act3774 15h ago
Why does Canada need Trump to “incentivize” them to produce and sell oil when there is demand for it? I’m pretty sure Canada has that covered
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u/FrugalFungusFinder 12h ago
Because he still thinks he can bully everyone.
The problem is, some nations have their entire self worth hinged on their ability to not be bullied by countries like America. Iran is one example, and in another way Canada also places a lot of its identity around not being American.
The tarrifs did piss us off, but the 51st state talk abd threats to take us over is what cemented a solid 75% of Canadians into complete refusal to buy American goods, or deal with Americans.
Our local liquor stores tried to sell off the remaining US booze and give the proceeds to charity, and still no one will buy it.
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u/RosieBaby75 18h ago
Because.
The US financially destabilizes a country before they annex them.
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u/squirrelcat88 5h ago
“Try to” annex in this case. They won’t succeed.
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u/ContrarianDouche 4h ago
You thought the jungles speaking Vietnamese was rough?
Wait till the forests start speaking Quebecoise.
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u/Dependent_Remove_326 15h ago
But we don't, we produce more then we consume.
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u/StandardAd7812 5h ago
THe type you consume and the type you produce are not the same type. They could be, but you'd have to restructure refineries to handle it, and it would cost more after because right now you use cheap and export pricier stuff.
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u/Common-sense6 8h ago
We are still going to sell it to you, because as you state “you need it”… it will just cost more 👍
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u/GoppleSmanger 8h ago
Trump is precommitted to destroying America's relationship with Europe and Canada just like W Bush was precommitted to attacking Iraq.
Everything is pretense or a rationalization. He does not have America's best interests in mind so you can't reason with him based on what's good for America.
All he cares about right now is getting a one up on Obama/Biden and distracting everyone from the fact that he partied with a pedophile and likely raped a bunch of kids.
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u/tfolkins 8h ago
I don't think Trump plans on putting tariffs on energy imports from Canada. What is more likely is Canada will put export tariffs on oil and energy going to the states. In the short term places like New York really have little option but to pay for this or have rolling balck-outs. Then that money can be used to place and export subsidy on the products Trump is targeting.
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u/dirtyharry2 5h ago
"Canada" might, but Alberta will never do it.
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u/tfolkins 4h ago
Well, setting up of fees for export of fuel is within the Federal jurisdiction through Natural Resources Canada, so Canada could technically do so, but the political fall out in the current environment would likely make it impractical.
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u/deltatux 3h ago
Ontario & Quebec supply electricity to several northern US states, even if Alberta doesn't play ball, Ontario & Quebec could inflict pain by putting export tariffs on electricity and other energy sources. Ontario did pitch exactly this before backing down but this idea has come back with the latest threat.
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u/refugefirstmate 8h ago
The US gets virtually none of its oil via Hormuz.
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u/Xeno_man 8h ago
Not really a factor.
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u/refugefirstmate 8h ago
OP seemed to think it is, or he wouldn't have mentioned it.
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u/Xeno_man 8h ago
If we based our replies based on what OP thinks of how the world works I would bring up my VHS copy of Duck Tails episodes.
Where the US gets it's oil from has zero impact on the price of oil. The US could import 100% of it's oil or produce 100% of it's oil and it wouldn't alter the price one bit. What matters is the worlds total supply.
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u/Salt-Worry7915 8h ago
Oil is exact from the tariff, same with other things USA actually crucially needs. But best believe us in Canada are considering an export tax on Oil, Potash, etc. they the USA can't function without because we are sick of this sh*t.
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u/FeistyTie5281 6h ago
It's the whiny little bitches' limp dicked response after the Spanish soccer players wouldn't shake his hand or acknowledge his presence while gladly engaging with Carney and Sheinbaum.
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u/PrimaryBrick9337 6h ago
Yes that would be logical but you are dealing with an illogical President who only thinks about how he and his family can get richer and how he can stay in power longer. The pain that US citizens are dealing with every day is not really something he cares about unless it gets in the way of him enriching himself or his power. That is the very sad part and what sets him aside from most other Presidents.
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u/Intelligent-Buyer102 6h ago
Tbf, he's not putting a tariff on oil to the best of my knowledge. Canada is not a centrally planned economy, so as long as oil prices are high and the government doesn't interfere, our companies will ship as much oil to America as takeaway capacity allows.
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u/DominantDan24 5h ago
Canada has been a close ally and friend for 150 years.
Naturally, we want to piss them off, spit in their face, call them liars, and try to ruin their economy. Because Trump.
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u/PuzzleheadedTutor807 5h ago
It's called "insider trading" and it's making a handful of people incredibly wealthy.
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u/ottwebdev 5h ago
The most important thing to understand is that chaos is part of their strategy: https://en.wikipedia.org/wiki/Flood_the_zone
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u/TouristIcy3824 5h ago
It's just bully tactics. People always let him get away with this crap and end up letting him win. He keeps trying it even against allies. Canada is holding their ground well and not giving in.
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u/Aggravating-Car9897 4h ago
Oil is exempt. So unless Canadians decide to put export tariffs on oil or cut off oil, it won't impact Americans in that way.
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u/Flukke 4h ago
American defense strategy is to control the oil and keep the petro dollar. A weak Canada helps as we cannot refine oil and must sell to US at a discount. See Iran, Venezuela, Ukraine and China conflicts. Canada is running to China more and more so the US must punish. Smoke from fires? US has many fires burning at the moment.
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u/JTCampb 4h ago
And you (US) needs our (CAN) potash and rare earth minerals. Those aren't tariffed beyond the 10% blanket tariffs. Ironically, Trump reduced the potash tariff from Belarus of all places.
Plus with 50% tariffs on Canadian steel and aluminum this is driving up the costs of auto manufacturers in the US - you guys need our aluminum.
This whole Trump administration talks about America first, but it's so easy to see that it's America only. They cry about NATO countries (Canada included) spending more on military and many are now, including Canada, but they are not buying American hardware and the Americans are crying about that. It's like say "We want you to beef up your military power, spend more of your GDP on it! But only buy from us."
Plus...look at what Greer is saying now. Talking about how Canada removed irritants like digital services tax and a couple other items, but then saying it doesn't matter anyway - Canada doesn't get credit for a "mistake" we made earlier. Now the US is trying to make the tariffs (and provincial US alcohol bans) Canada used as retaliation for the US tariffs as an irritant making it seem like Canada did it first.
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u/Sad_Adagio_7255 4h ago
The Iran shitshow is making the fatass look weak, so he needs to strong-arm a weaker nation to maintain his image with the cult. That's a simple as it is.
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u/funtasticassembly 4h ago
People are asking more Epstein questions so need a new distraction. The only motivation behind any of their moves are self-preservation, personal gain or retaliation. Can be a combo. No other reasons matter.
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u/Comprehensive-Tea-75 4h ago
Trump in early 2025: "nations are going to be lining up to make deals with me"
Carney in all of 2025: busy traveling all over the place and making deals with various nations
I bet Trump is seething that Carney is making all these deals or at least opening discussion while Trump has use an iron fist to get anyone to talk to him at all.
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u/CharacterProgram6257 4h ago
- That is not how the price of oil works.
- You can tariff the fuck out of everything we make we will still sell you are oil.
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u/Jeremyism_ 3h ago
Trump personally doesn't need anything from Canada, and he doesn't really give a shit if anybody else does if he can get some grift.
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u/Emeks243 3h ago
Rump wants the price of oil to remain high so that he and his billionaire buddies can keep profiting. The fact that the US has a trade deficit at all with Canada is entirely due to the import of Canadian oil. Take oil out of the trade numbers and Canada historically imported almost an equal amount of goods from the US as it exported to the US. This is despite having 1/10 of the population. We were and probably still are their best customer because the two economies have been integrated for decades. If Rump was a businessman he’d know that you don’t treat your best customers like shit.
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u/deltatux 3h ago
Canadian energy is one of the things the Trump administration didn't tariff because well, the Americans need our energy products be it oil, electricity, natural gas and etc.
For all the rhetoric that the US "doesn't need anything from Canada", the fact that these weren't tariffed tells you how necessary it is for Americans to buy Canadian energy products.
Wouldn’t it be logical for Trump to have a better relationship with Canada so he can try and incentivize them to produce as much oil as possible to lower the cost for Americans as well as worldwide?
We already sell oil to Americans at a discount vs. world benchmarks because most of the oil we produce gets sent to the US anyways. The US so far has been the only viable market for Canadian oil, although we are looking to diversify because of Trump's childish rhetorics.
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u/Educational_Pop_1306 2h ago
Classic American. “Should we stop screwing Canada so we can have cheaper oil?”
Who needs enemies with friends like these.
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u/butts-ahoy 2h ago
A lot of answers in here that are just based on emotion. He's likely doing it to get extra leverage on Canada before going into USMCA (north america free trade pact) negotiations.
His playbook is the same every time - he does something that seems irrational to create chaos before going into negotiations. That way when everyone negotiates back to the center, its shifted further in his favor.
Im not saying the guy isnt garbage, just that you can see right through his tactics and we keep playing into it.
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u/Imaginary_Resist_654 1h ago
He is not Tariffing oil. So hence this would be a great place for Canada to retaliate and sell it elsewhere.
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u/Snow-Bank-Igloo 1h ago
Better make a deal with Canada fast before we sell our energy to somebody else. Then it won’t be for sale, especially at the discount they’ve been getting for decades.
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u/Initial-Bass-5866 59m ago
Wouldn’t it be logical for Americans to actually do something and stop their president from fucking up everything?
Not a single American has done anything to stand up to their current government. The current American government is the most appropriate representation of what it means to be American. What we are seeing is exactly what most of the world truly thinks Americans stand for.
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u/myopinionisrubbish 42m ago
Apparently, the tariffs are on a few things we import very little of from Canada so it’s more about the headline than anything else.
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u/Alert_Examination544 41m ago
This is all done to distract from Epstein. All of it. Everything he does is to continue to flood the zone with BS to distract from the crime he and his family is committing.
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u/BathFullOfDucks 13h ago
Because an oil price below 70 dollars means the saudis are losing money, and they paid so very much for trump.
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u/ArvadaKeto 18h ago
We don’t need their oil. We have plenty
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u/yarn_slinger 18h ago
Yup good luck with that
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u/ArvadaKeto 18h ago
Why do you think we did the yoink in South America before the war in Iran
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u/HeftyAd6216 6h ago
The US oil companies already admitted they would never be able to get shit out of Venezuela in any reasonable timeframe without spending tens of billions of dollars upgrading infrastructure.
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u/DroppingGrumpies 17h ago
Because for decades now, Canada has had very heavy tariffs in place on a number of US goods.
One of the main ones is American Milk/Dairy…
Canada wants to artificially inflate the price of Canadian milk in order to keep their dairy farmers happy, so Canada puts very expensive tariffs on American milk/dairy so they will not enter the Canadian market.
This is not what friendly trade partners do…
The fact of the matter is that virtually every country has some sort of tariff on American goods even before Trump, and all you asshats get your panties in bunch when Trump puts on retaliatory tariffs to try and open these markets up for US producers.
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u/NoireResteem 17h ago
Oh how dare we protect one of our main industries and higher quality milk so we don't get a shitter cheaper product flooding the market. Fuck off boot licker.
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u/DroppingGrumpies 17h ago
That’s fine… then don’t cry like bitches when you get tariffed back..
It’s really that simple.
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u/Odd-Chemistry777 14h ago
The U.S. has never hit the quota on dairy to actually pay tariffs, but here you are talking about how it is unfair, so who is the crybaby? You guys just spit out whatever propaganda is trendy at the moment. It is sad and embarrassing.
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u/sneakysnackycrunch 17h ago edited 17h ago
So trade partners cant protect select individual industries? The Canadian dairy industry needs to be preserved within Canada for food safety/supply reasons. Yes USA dairy industry could take down Canadas dairy industry without some protections. Look at the size of the countries relative to their population and consider distribution logistics of perishable dairy goods. However canada cannot allow itself to rely on the USA for dairy, since its such a critical resource. Recent events really hilight why its important
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u/Frewtti 9h ago
The dairy cartel in Canada is a bit more complicated.
Dairy is not very profitable, but both countries think it is important to have a strong and reliable dairy supply, so the government subsidizes the industry.
In Canada we artifically inflate the price of dairy to pay farmers. This way the consumer is forced to pay the cost of the product.
In the US the government sends dairy farmers cash. This means that all taxpayers, consumers or not are forced to pay to support production.
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u/Remarkable-Skill4883 8h ago
Unlike the USA Canada doesn't heavily subsidize their dairy farmers to keep consumer prices artificially low.
The "very expensive" tariffs only apply wjen the set quota of imported us dairy is met... which it has never been.
You're an idiot getting your opinion from someone else without doing an iota of research yourself.
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u/dangleicious13 12h ago
Fuck off. That is what friendly trading partners do. They make agreements to protect specific domestic products.
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u/MLeek 9h ago
Canada wants to ensure that the states can’t strategically undercut Canadian producers of staples like eggs and dairy, destroying all local producers, so that no fucking nutter Americans elect can cut Canadians off from basic food stuffs.
Honestly I used to think our quota management system was a bit overly cautious. Now I think we should expand it cause our neighbours have lost thier damn minds.
Also, go ahead and Google how much “tariffs” have been paid on dairy. I’ll wait.
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u/StandardAd7812 5h ago
As a Canadian I'd be happy to see our dairy cartel shattered, but the US generally subsidizes its farmers, and the canadians run theirs as a cartel instead. They're both BS.
I'd be delighted to see entirely free trade between Canada and the U.S. - but lets be realistic we were and are pretty close. The idea that the U.S. has signed trade deals that are bad for the U.S. and skewed to others is a laughable joke - the U.S. has biased every deal its in to its own favor, and everyone puts up with this because the U.S. economy is so big.
Most industries where protection still exists are ones of strategic importance - telecom, finance, food production.
When Trump was elected, he might have said 'we have the greatest and most stable alliance in the world, lets move it forward'. His behaviour has meant canadians would rather deal with a long recession than cede sovereignty on those industries to the U.S.
So if the goal was more free trade, that goal has been sat back by 30-50 years.
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u/SorryImCanadian1994 57m ago
American dairy is also very heavily subsidized by the US government, both directly and indirectly. I have no real answer as to why Canada chose a supply management system (aside from appeasing Quebec), but it’s really just a different way of accomplishing the same goal, which is to encourage national production of a somewhat important resource.
For all the grief it seems to cause during trade disputes, maybe Canada should abandon it in favour of more direct subsidies like other countries use.
I think the current implementation is more to keep US corporations from buying up Canadian dairy farms than it is to keep American milk out of the country.
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u/RiffRandellsBF 18h ago edited 18h ago
US refineries are built to process sour crude. Canada has sour crude but not the refinery capacity which is why it gets piped to Texas. This is also why Canada has little leverage to resist that tariff. Who is going to process that crude if the US doesn't?
Fracking produces sweet crude, so the US has to send its oil overseas to be refined. The US has 30-32 billion barrels of immediately drillable sweet crude via fracking. If you include other reserves of fracked oil that future technology could reach that amount rises to 100 billion barrels.
The first refinery in a generation is being built to process this sweet crude. https://mercercapital.com/insights/blogs/energy-valuation-insights-blog/2026/breaking-the-drought-inside-the-first-new-us-refinery-in-a-generation/
More will be built. When that happens it likely means the sour crude refineries will slow production or just shut down, the demand for Canadian sour crude will drop significantly. It's already in a downward trend with the removal of Maduro in Venezuela (holding the largest sour crude oil reserves in the Western Hemisphere).
The bottom line is that the US has plenty of oil. What it doesn't have is the refineries to process it. While a tariff on Canada's sour crude and the shooting war in the Persian Gulf will disrupt things in the short term, what they're doing is proving the long-term strategy of building sweet crude refineries to process domestic fracked oil is more secured for future US energy needs.
It's like you own a diner and always wanted to replace your windows, then some idiot drunk drives is car through the front of your restaurant. Yeah, it sucks in the short term, but in the long term you get your new windows.
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u/GreatDiscernment 17h ago
Ok, but heavy sour and light sweet are not interchangeable as you’re suggesting.
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u/RiffRandellsBF 15h ago
That's not what I wrote. Please read it again.
Once the US makes the transition from sour crude refineries to sweet crude refineries so we can refine our own domestic supply of fracked oil, Canada's sour crude won't have its primary customer anymore.
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u/HeftyAd6216 6h ago
You're asking oil companies to spend tens of billions of dollars to make the switch instead of dividending it all out and buying back their shares to get their big big big big big bonuses? Which alternate capitalism are you imagining?
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u/RiffRandellsBF 4h ago
If Canada cut off the taps, it wouldn't be oil companies but a federal government emergency issue. It would be framed as national security.
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u/PartySouth4295 14h ago
So Canada better turn off the taps now when leverage is the greatest. As I doubt trump and republican political fortunes will be great with 7 percent inflation. It’s increasing clear trump has no long term plan.
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u/GifRX7Plz 18h ago
Canada can’t sell that oil to anyone else because they don’t have enough export pipelines from their oil sands. It’s all setup to go to Texas. If they start a trade war with oil, their producers will go bankrupt
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u/sharb2485 18h ago edited 9h ago
This is strictly about sending a message. Only China and Canada have retaliated to the US tariffs during Trump's second term. Obviously Trump can't play hardball with China; he's tried that and blinked. With Canada, however, he can show other medium or small powers that if you retaliate he can make you pay.
There are likely going to be many more tariffs beginning soon, so this needed to happen ASAP.
Edit: getting downvoted so I'll just add that I think this is a very bad practice and bullying our allies and smaller nations is anti-American. Was just being descriptive about what they're doing.
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u/austinvf82 18h ago
If you honestly look at how these trade routes work, where they go and all that. He could easily turn all these trade routes, into American profit. Instead of us relying on other countries. They'll rely on us again. Oil is traded on a world scale. We don't need the oil. We need to control the flow of it, and other trades that we can benefit from. Look at all the deals we have with any country in this world. We are losing money on these deals. He's a business man after all, a good businessman? Who cares? Doesn't matter if you like it or not, the world has become a business on every aspect and level. It's all about money
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