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Donald Trump tells Canada to become a state to avoid his tariffs (www.huffpost.com)

submitted 23 hours ago by MicroWave to c/world

116 comments fedilink hide all child comments

Summary

In a virtual speech at the World Economic Forum, Trump suggested Canada could become a U.S. state to avoid his proposed tariffs on imports.

The remark elicited gasps from the audience.

Trump claimed the U.S. does not need Canadian lumber, energy, or vehicles, vastly overstating the trade deficit between the two nations.

He reiterated his intention to impose tariffs, potentially as high as 25%, on imports from Canada and Mexico starting February 1.

Economists warn such tariffs would raise prices for U.S. consumers.

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[–] kerrigan778 7 points 8 hours ago (1 children)

That's not strictly true, they don't "pay the tariff" obviously but they do have to balance profit margin and lost sales. Tariffs are likely to decrease number of sales which does hurt their bottom line, the question then is if they just take a loss in sales, cut into their profit margins trying to lower the price to the US (very unlikely the margins are nearly enough for this to be viable let alone preferable) or increase prices further to offset the lower sales. Probably will be mostly the former with raw material type goods and mostly the latter with high end finished goods.

[–] victorz 1 points 6 hours ago

Right, that's what I was thinking. Surely it hurts the seller. But it also hurts the buyer, so it's like 🙄 well done, Trump...