Tag Archives: tariffs

News to me

That happens. I do not know everything and it is not my business to know everything. I learned that early in life, before I know thought I knew everything, I learned as I took the oath of a radio operator, that there is a price for knowing too I much and as such I tried to ‘calm’ the need to know too much. When it is in my business to know, I try to know the materials pretty thoroughly. I tech support there was one program I had to know, but I had to know it on dozens of systems and  for the most I knew the goods. This is not some spreadsheet or a presentation program and you know the in’s and outs of the program (not dissing these software solutions) but in one program know the issues on IBM MVS, DEC digital VMS, AS/400, Sun systems, Unit systems, Windows Systems and a whole lot more, and every mainframe had its own coordinators handbook. For the most it was OK. The dealers could help its own customers but when working deeper they came with questions on installation, data cleaning, syntaxes of the system and of course the limitations that existed per system. In an age where there was no system (it was promised, but was always a month away) I kept my head above water. So what does this have to do with the current issue?

It was given to me in the Conversation (at https://theconversation.com/trumps-trade-war-is-forcing-canada-to-revive-a-decades-old-plan-to-reduce-u-s-dependence-248433) where we get ‘Trump’s trade war is forcing Canada to revive a decades-old plan to reduce U.S. dependence’ it is here that we are given “After threatening Canada and Mexico with illegal tariffs, and Canada with annexation, United States President Donald Trump has agreed to hold off on imposing tariffs on Canada for at least 30 days. This decision came after Prime Minister Justin Trudeau spoke with Trump and committed to strengthening border security” with the added “Early responses seem to have coalesced around two policies: for Canada to trade less with the U.S. and more with other countries and to strengthen the internal Canadian economy.” This implies that the free trade agreements were signed up with that in mind and to ‘diverge’ Canada to go that way. It seems weird that the ‘councilors’ of this US administration did not hammer on this, or seemingly did not hammer this. You see, as I see it President trump shot himself in the foot here. And then watered all over himself. Two distinct settings that could have been avoided. Now America faces tariffs themselves and come to boot Allies of Canada are signing up deals on all markets which will cost America dearly. It also means that the Commonwealth will become stronger as one together. I don’t know (at present) where India stands, but in retail and pharmaceutical solutions there is every chance that Canada will seek solutions in that field. So as we see “But it will impose significant costs on Canadians and require a fundamental readjustment in how we think about our economy and society.” This might be fair, but that all depends on what India could help save Canada costs, if that is achieved (though pharmaceuticals mainly) the net savings for Canada are a lot greater then expected. There will be cost in the beginning yet in the end it might work out cheaper (not easier) for Canada.

Then we are given “In 1972, then-Secretary of State for External Affairs Mitchell Sharp wrote a paper called “Canada-US Relations: Options for the Future.” At the time, international politics were in a moment of transition, and the U.S. was recalibrating its understanding of its national interest.” It is here we are given (at https://gac.canadiana.ca/view/ooe.b1557737E_001/329) a lot more then we bargained for. It is a 332 page paper, as such the 46MB file is not here, but in its original location. As such I would surmise that American administrations forgot about ‘the U.S. was recalibrating its understanding of its national interest’ it seemingly forgot about this. I prefer to think that the setting of pending bankruptcy is making them knee jerk themselves into the next month and the next and the next. Yet there is a rather nasty hindsight to this (not for me). There is a rather urgent need to reassess criminal behavior. So the settings we see in London and other cities (like Los Angeles) imply that a more Venezuelan setting will come to America (thanks to Steve Inman) his comments are setting a new side to the debate. There is no doubt that these ‘free $1000 thefts’ will result in a need to shoot to kill escalation and for the most no one has a problem with that. This escalation is right on the horizon now. The $1000 misdemeanor setting will  (according to some) take care of the freeloaders and especially shopkeepers are fine with that. So as America does away with its freeloaders we still have an issue in Canada and for the most part I hesitate to consider what made America consider its tariff setting, especially as Canada was considering the paper in 1972, it might have been long, but not too long and in light of current trends this setting was on the horizon as were other options and now that America is feeling its first brunt with BRICS, there was a cautious tale on the horizon. And now that the US administration is setting up a ‘Sovereign Wealth Fund’ with the underlying ““We have tremendous potential,” Trump said while signing the order from the Oval Office on Monday. “I think in a short period of time, we’d have one of the biggest funds.”” (Source: The Guardian) I personally disagree. They HAD tremendous potential and now that they started the tariff wars (it doesn’t matter if it is on hold for 30 days). Canada is now looking at setting additional channels with the Commonwealth, whilst diminishing trade and we now see that there is a 1972 paper who did the hard stuff. The question is how much of that is still valid. I actually don’t know that, but I left the link for your reference. Then there is the options that America left on the floor and now China has an inner track to set a lot more towards the Kingdom of Saudi Arabia. I mentioned it more then once in the last two years. As America stifled the sale of their F35, China has been active on at least two weapons trade shows to give rise to the Chengdu J-20 from the Chengdu Aircraft Industry Group. Did you think that China left a call for a few dozen billion unanswered? At $110,000,000 that implies at least 3 squadrons and guess what, they will not be compatible with whatever Northrop Grumman or Raytheon has to offer. As such there could be a bigger shift in that setting. And as soon as China ‘proves’ that the Chengdu J-20 is at least equal or even superior to the F35, America loses that game too. You see, China only have to prove it is at least equal, a much lower threshold. Add that to the Canadian setting and as Canada can prove goods to the UAE and Saudi Arabia (optionally Egypt and Bangladesh) that are a few more markets where Canada will get slices of pizza that were meant for America. All that for a tariff? So how much more does America have to lose to show its ‘Sovereign Wealth Fund’ to be close to irrelevant. Yes, others will profit too. Yet Canada never wanted this setting in the first place and that is where short term considerations make some lose ‘their’ war. And just for consideration. Fentanyl is not new. As given by some “Fentanyl was synthesized in 1960 as an intravenous anesthetic and went on the market in the U.S. in 1968. Transdermal fentanyl was developed in the 1980s and was subsequently used for pain management in cancer patients” it was invented by the Belgiums and it has been on the market over half a century. So it is not new, the (speculated) non-actions by America made it an easy drug to score big on. In addition, it is a pharmaceutical  with a boxed warning. So why is it not a controlled substance set to a narcotic? Lets consider that narcotics were ‘outlawed’ in 1914 and went to the American market in 1968. So why was it even allowed? And even as we see in the Conversation where we are given “For the Third Option to be viable today, Canadians must embrace an independent Canadian identity based on respect for democracy, pluralism, the rule of law and human rights. It likely requires consensus that U.S. authoritarianism is wholly unacceptable to Canada.” And this third option point is now reached and so far (as is visible) nearly all the Commonwealth nations. As I see the Australian parties weaseling (my personal assessment) as “Australian Trade Minister Don Farrell is seeking talks with America” (source: News) where we see no clear message to Canada in support as a Commonwealth nation (like weasels as I personally see it). At this setting Scotland shows itself as a much more honorable Commonwealth nation, but the larger issue will be India, as that is where the massive parts of retail goes. I get that India is playing a sensitive game but something must give at some point, Canada needs us now. From a personal note, Canada was there for the Netherlands in WW2. As Dutch born I will stand with Canada on this.

Yet the larger setting is missed. In the end Canada is not the larger play. It will be China and what it can grab from America on the long term from them involving Saudi Arabia, the UAE and optionally Egypt as well.

So have a loverly day and if you are in America try drinking Tim Hortons for a change. It might wake you up faster, stronger and better.

Leave a comment

Filed under Finance, Media, Military, Politics

War of trades

That is what we are facing now (not to be confused with World of Warcraft). Canada is now under the yoke of President Trump and we (all Commonwealth nations) have to unite. It is nice to call that president loopy or crazy, but the hardship is not like that. As I personally see it, it is the first step of a nations that has no options against calling themself broke and the media is as I see it, too stupid to call it out (too used to be the bitch of America is more like it). So what can we do?

First things first. “In 2022, Australia imported $6.45 billion in crude petroleum” part of that sum came from the United States, I cannot tell what part. As such we stop that and we get it from Canada. That takes away the tariff from Canada on that. We see that America went ‘soft’ on that according to the news. Why? They need to, they need oil. Oil they can sell at additional coins. So that stops. As such “The UK imported around 42 million metric tons of crude oil and natural gas liquids in 2023” this was also in part from the United States, so they get it from Canada as well. That implies that Canada is not suffering tariffs on oil. See, that took little time. We set the same to India who exports oil to the United States. Set that to Europe (to a much larger degree) and all its Commonwealth allies and America suddenly gets a much larger problem. Well they can import it from Venezuela and Russia I reckon. So, how is that going now President Trump?

Then we get a lot more. For our local needs Australia could become the location for Rum (Bundaberg) and it could be exported to Canada, there goes the American Rum export to Canada. The fun part is that Canada could get its import from Australia and the United Kingdom as well and soon Budweiser is losing its export locations. In other news, Labatt Brewing Company and Molson Coors Canada Inc. would now be the locations of Australian beets. As that setting changes America now has a problem they themselves created. And with the quality of water in America, these brands end up having an honest problem selling their beer anywhere. 

These are of course the some settings. What happens when they cannot get nursing staff, because Canada sets the horn of plenty towards the Commonwealth countries and we cannot send them to America as the Commonwealth have had our fill with their tariffs? What happens when we merely set out to ourselves? You think nurses are easy to come by? What happens when a chunk of IT staff in Microsoft, Amazon, Oracle and IBM gets called back to Commonwealth nations? How will you solve the knowledge base then? These places also exist in Canada, Australia and New Zealand. As such there will be a redesign of staff pressures. And that will (accidentally) coincide with staff requirements in the Middle East (UAE and Saudi Arabia) two places the US can not deliver to as they then sorely lack the staff on such levels. What a tangled web they weaved.

Meat from US in Canada will be replaced to meat from New Zealand, UK, Australia and Mexico (they got the tariff book as well), that implies more from other nations and none from America. Was that what they had figured on? So as American revenue declines and meat will required a downgrade as they suffer exports. So, USMEF has 19 offices and regional representatives in key markets around the world. And soon that will get a massive drop on revenue. Al because they wanted to test their bankruptcy measures on other fields like tariffs. So how much more needs to happen? Meat, Booze, oil and staffing. All going other ways soon enough. How will that leave the America economy? And I reckon Wood does not need to come from America, it does now, we can import from Canada too, as such Canada will need less tariffs to worry about. So who chained the links together? What started as as separate issues now becomes a formidable chain that whacks America over the head as we solve matters internally and for a few issues we could partner with Mexico. All separate issues that were ignored as they were to some too small to consider, but this chain represents billions in goods and millions if trade shipping now about to leave America hands.

Trade wars have a nasty habit of biting bak when the numbers are not in your favor. Canada does not stand alone, the Commonwealth can support it as it should. I do fear for weak links (like Keir Starmer and Anthony Albanese) as they want to appease America. Those days are over and now America has another issue coming its way. It was ‘protected’ by an ocean from China, but in this setting China would get invitations as Australia and Canada would entertain trade talks with China. So how is America sitting now? Oh, and in that setting there is a new setting to Five Eyes, 4 of its members have had enough of President Trump and its loopy vision (possible he needs glasses). And in one instance the CIA loses whatever handle it had on international businesses. Yes, that was a real bright idea. We might lose Palantir as a partner (which is fair enough) yet if you think that China doesn’t have options there, you would be really delusional in your thinking. I reckon that these tariff wars were the Christmas present for China almost a year early. 

All that coming now?
And I saw part of this in under an hour. So how did this escape the American views? A tariff war was the worst setting they could enable. So why did this president not get the Intelligence he needed? 

I reckon there is a lot more and we need to stand firm with our brother Canada. We are the Commonwealth, not a play-toy (or the bitch) of America. We have a population exceeding billions, we eat, we drink and we are merry (at times loopy too). And 2.5 billion represents massive amounts of power, more than the 350 million in America can bring so when that retail power falls away a lot more American businesses will suffer in the process.

Just a little lesson for the reader and consider who you wake up. America is about to learn that the hard way and China likes the setting it is about to exposed to. An Ally that does this to Canada is no ally at all and there are massive consequences with ringing the tariff bell.

Have a great day.

1 Comment

Filed under Finance, IT, Media, Politics

Calling a bluff

That happens, some people bluff and others tend to call the bluff. That is the setting that president elect Trump called on himself. We all heard how the upcoming Trump administration called the setting that they opened. They threatened the Canadian Trudeau administration on tariffs when “Trump threatened in a social media post to apply devastating levies of 25% on all goods and services from both Mexico and Canada, vowing to keep them in place until “such time as drugs, in particular fentanyl, and all illegal aliens stop this invasion of our country!”” As I see it, a larger setting that the US called upon itself. The war on drugs has been going on since June 17, 1971, during which President Richard Nixon declared drug abuse “public enemy number one”. I get that, drugs are the filth of any civilisation. Perhaps America could have changed tactics decades ago, when it was set to ‘the black population’, being white an wealthy enabled cocaine habits, all whilst crack users got the bulk of the heavy punishment. I cannot voice any opinion because it is too far from my bed. Yet the media used that setting to give us “New Jack City” and “Boys N the Hood” with an entertaining “Cocaine bear” for good measure. I reckon that “Traffic” is one of the best views on the subject (there are many I never saw).

So after half a century of failure the President elect Trump now blame the neighbouring countries. Well two can play at that. In the first I suggest any American arrested on drug charges (outside of USA) get the death penalty. No options, no trials, just point and click the gun. In the second we consider the stage that Ontario’s premier, Doug Ford is suggesting (at https://www.theguardian.com/world/2024/dec/12/canada-ontario-premier-trump-tariffs). With ‘Ontario leader threatens to halt energy exports to US if Trump imposes tariffs’. This is actually not a bad move (better than my idea). At present we have the idea that Canada’s revenue from electricity exports to the United States hit a record high of C$ 5.8bn. Quebec is the largest exporter, with Ontario following second at 13.9m megawatt-hours of power sent south. Of course the setback is that Ontario loses that near essential revenue. But consider that America loses 13.9m megawatt-hours of power which adds to the hardship America has at present and the next 2 quarters that hardship could be seen as close to debilitating. 

So should the Trump administration push the tariff bluff, the payback that follows is nothing short of a banger of a payback. I see all these bad press moments of Doug Ford, I cannot answer whether they are valid, but I reckon this one is on point and only 6 hours ago we were also given ‘Ontario premier suggests stopping US liquor imports over Trump tariff threat’ (at https://www.theguardian.com/world/2024/dec/13/ontario-trump-tariff-liquor) not a big thing for the non alcoholics and lets face it, Ryan Reynolds gives us Gin (perhaps soon Canadian Gin too), Dan Ackroyd (part Canadian) gives us Crystal Head Vodka and Canada also has its Whiskey types. As such, it will hurt America a lot more than it will Canada. 

There are other drinks that come from outside of the USA. There is Jenever (Dutch Gin, Netherlands), Gin (UK), Aquavit and Absolute Vodka (Sweden) not to mention the dozen of wines from the French speaking regions (like France). Oh, and Raki and Ouzo are Greek. As such plenty of non-American options. As I personally see it, the response to the Trump bluff will be countered in a few ways and it is my belief that the Trump Administration will be forced to do a 180 degree on the spot, that is if they would like to keep their other ventures running somewhat smooth. 

I personally think that Doug Ford called an upcoming bluff in several ways and all are promising answers to the situation that Canada is in no way to blame for. So what do they want? A 8,891 km wall? Who pays for that? As I see it, the war was essential for a long time, but as the ‘law’ unfairly differentiate the rich and the pour on drugs, this was never going in any direction fast. 

It seemed like such an easy solution but that was never go down well, because the complexities that American law allowed for made it way too complex (as I personally see it).

Have a great weekend, Toronto joins un on this Saturday in 2 hours.

Leave a comment

Filed under Finance, Law, Media, Politics