Carney Shuts Down Trump Question & Praises China - Canada Crushes the U.S. Tariffs Plan
The StateLight
Sep 11, 2025
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U.S. Tariffs
Carney Shuts Down Trump Question & Praises China - Canada Crushes the U.S. Tariffs Plan
Trump’s own words — warning that without tariffs America could become a “third-world country” — have turned into a haunting prophecy. A federal appeals court has ruled his tariffs illegal, opening the door for a 210 billion dollar refund that U.S. businesses are demanding back. For me, this feels like the ultimate backfire: a strategy built on unilateral coercion collapsing in front of the world. While Washington drowns in legal chaos, Prime Minister Mark Carney is executing a long game — using energy, minerals, and trade leverage to permanently reshape North America’s balance of power in Canada’s favor. This video unpacks how a Supreme Court ruling could mark the end of America’s tariff weapon — and the rise of a new Canadian-led order.
The Trump Tariff Legal Battle and Its Implications for Global Trade and Equity Markets - Ainvest Sep 3, 2025
- 0:00 - 12:19 Carney Shuts Down Trump Question & Praises China
- 12:19 - 34:30 Trump Pushes Through Free Trade Dairy Agreement
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Peter Burgess COMMENTARY
I am watching a lot of video material that originates in Canada. It is a very different story line to most of the material that originates in the USA.
This is confusing ... and also concerning.
I have no problem with people having different opinions ... but I wish that the facts could be one. 'Gaming' the facts has become the norm in much of the modern world and as a result the world have become dividied more now than at any time before in my lifetime.
I am more 'onboard' with what I understand to be the Canadian view than my understanding of the 'mainstream' American view
Peter Burgess
Transcript
- 0:00
- Carney Shuts Down Trump Question & Praises China
- If you took away tariffs, we we could end up being a third world country. We don't win that case, our country is
- going to suffer so greatly. That line can be read as Trump's reluctant admission of an unfolding
- strategic failure. The Federal Court of Appeals has ruled those tariff orders
- illegal, a judgment the US Supreme Court may well uphold. While Washington faces
- the chaos of having to refund over $210 billion in Ottawa, Prime Minister Mark
- Carney seems to be triggering the final stage of a long-term strategy, exploiting America's moment of weakness
- to permanently reshape North American relations on terms that favor Canada.
- The collapse of tariff policy is the inevitable result of Trump's disregard for both economic and legal rules. It
- began with a fundamental miscalculation of Canada's strength, treating it as a dependent entity instead of a sovereign
- partner with its own levers of power. Canada should honestly become our 51st state.
- That mindset led to escalating actions on increasingly flimsy grounds from digital services taxes to the fentinel
- 1:06
- issue, an excuse thoroughly disproven by actual data. The second structural
- mistake was ignoring the nearly inseparable economic integration between the two nations. Slapping broad tariffs
- on a partner that supplies 63% of US crude oil imports and anchors the auto
- supply chain isn't pressure. It's self harm. Data from the Congressional
- Research Service shows that in 2024, Canada was America's second largest
- trading partner with US exports to Canada hitting $349 billion and imports
- at 413 billion. More importantly, Canada remained the indispensable energy
- supplier, providing 63% of US crude oil. Imposing tariffs across the board on
- such a tightly bound partner is nothing short of wounding North America's own supply chain. The consequences of this
- 2:04
- miscalculation ricocheted straight back into the US economy, creating what's now
- being called the ricochet effect. Instead of trade partners paying the price, it's American businesses who
- footed the bill. And now that number is being quantified by the judicial system.
- And we've never talked about a refund check totaling more than $210 billion.
- This is the amount that the US government has collected through August 24th from tariffs. And reminder to folks
- out there, who's paying this? This is US businesses. This has turned into a direct legal
- crisis. The appeals court ruled that using the International Emergency Economic Powers Act or EPA to impose
- tariffs was an abuse of power beyond the law's intent. There was an appeals court that ruled
- that Trump's tariffs were unlawful because he was using the uh a powers
- 3:00
- act, an emergency powers act, also known as AIPA. And the judge essentially said
- that's unlawful. This ruling has transformed an international trade war into a domestic constitutional crisis.
- It challenges the world view that executive power alone can override limits set by the legislative branch.
- This is it's a huge blow to Trump's belief system that executive orders are the way to put his policies in place
- versus doing it the correct way the way our constitution states. As this policy framework fractures from within, Canada
- has been patiently constructing its own alternative, waiting for the collapse.
- The negative effects on the US economy are increasingly visible. The labor
- market shows signs of weakness, a reality the administration seems more intent on concealing or politicizing
- than addressing. We got the Jolts report earlier today and that talks about openings, hirings
- 4:00
- and separations, layoffs or firings. Uh what we saw in this new report this
- morning, we saw now that there are fewer jobs available, so about less than one
- job per job seeker. President Trump was really upset by that and he fired the
- head of the Bureau of Labor Statistics because of that. This instability only deepens the lack of trust in the
- administration's economic management. Instead of acknowledging the problems, the approach has been to attack the
- messengers, a signal of weakness, not strength.
- Meanwhile, Canada under Prime Minister Carney has played the long game with patience and vision. Rather than
- reacting emotionally to provocation, Ottawa rolled out a multi-layered strategy, minimizing short-term damage
- while building leverage for the future. The first layer was crisis management
- and tactical diplomacy, even under pressure at home for quick results. Carney maintained a calm but confident
- 5:00
- tone. He asserted Canada's strong position while acknowledging issues that needed fixing, keeping control of the
- narrative. Madam, good morning, Prime Minister. Ashley Brooks, CBC News. When was the last time that you exchanged messages? How much
- longer do Canadians have to wait to see results from those talks with the US president? His reply wasn't an empty promise, but a
- reaffirmation of strength. He stressed that the result was Canada already
- having one of the best trade deals in the world while admitting the need to improve and solve lingering problems.
- Okay. Well, let's let's go to results. Right now, we have the best trade deal of any country in the world. We're not, we think it can be better and we're
- working to make it better. The peak of this tactic was an asymmetric response, rolling back some
- retaliatory tariffs on US consumer goods to hand Trump a symbolic victory, but
- keeping tariffs firmly in place on core industries. That move succeeded in
- pulling Trump back to the negotiating table, a quiet admission that US policy had reached a dead end. On the second
- 6:00
- tier, Carney pushed forward with long-term economic restructuring. Seeing
- how unreliable its largest trade partner had become, Canada launched a trade blackout, a systematic effort to
- diversify markets. The team Canada policy aggressively pursued new trade
- agreements and as a result, the share of exports flowing to the US dropped sharply while shipments to other markets
- soared. And finally, it was about consolidating strategic leverage,
- waiting for America to falter. Canada understood that its true strength lay not only in trade, but in resources no
- one else could replace. In its complacency, Washington ignored just how
- structurally dependent it is on Canadian energy and minerals. From hydroelectric
- power that fuels America's industrial states to uranium, the backbone of its
- nuclear industry, Canada holds the real Trump cards. Even as it kept up
- highlevel dialogue with Washington, Ottawa was quietly preparing for the future, especially the upcoming review
- 7:06
- of the trade agreement. So, right now we have the best, but we have real issues. Without question, we
- have real issues in steel, in aluminum, uh in forest products, in auto, in autos, potentially in pharma. There will
- be a review of KUSA starting next year. So, we need to prepare for that. This preparation reflects Canada's
- recognition that the global order is shifting and it must reposition itself in the new world.
- President Xi, uh, President Kim and President Putin uh met. What does this signify to you in terms of the
- geopolitical nature has of of what's going on? Has the world become more dangerous because of this? Uh
- this stage of preparation placed Canada in the perfect position to wait for the decisive moment. The US legal system
- formally declaring the failure of tariff policy. A Supreme Court ruling against
- the tariffs would completely flip the power dynamics in North America. It could dismantle Washington's main
- 8:04
- coercive tool, stripping away its ability to threaten arbitrary tariffs.
- For Canada, this would be the ultimate legal vindication, validating its arguments and granting enormous
- diplomatic advantage. That collapse of US leverage would instantly trigger Canada's offensive phase. Carney would
- waste no crisis, shifting from defense to carefully calculated attack. First,
- Canada would renegotiate USMCA from a position of dominance. With Washington
- bound by court rulings and financial chaos, Canada could demand tougher safeguards for its industries and
- stronger dispute resolution mechanisms. While America's ability to resist would be sharply limited. Next, Canada would
- weaponize its strategic resources. America's vulnerability paired with structural dependence on energy and
- minerals would let Ottawa move from reliable supplier to rule setter. They
- 9:02
- could demand long-term investments and agreements that anchor Canada as the West's strategic mineral hub. Finally,
- Canada could fasttrack its global pivot. America's internal turmoil would become
- Canada's strongest marketing tool, accelerating new trade agreements and positioning itself as an island of
- stability and rule of law. By leveraging pragmatic ties, Canada would entrench
- its international standing, making the most of an opportunity created by US
- policy failure. Car's approach to China is a perfect example of this flexibility. He doesn't ignore
- differences, but he doesn't let them block economic opportunities. Yeah, I I would say the following. Is
- the world a more dangerous place uh than it was during u the power balances are shifting? We have differences with
- China, but they are our second largest trading partner and we will look to potentially expand those areas for
- 10:02
- cooperation that are in in ways that are consistent with our values. The world's a risky place. We've got to be careful
- and we have to focus in where we can retain our sovereignty, enhance our
- sovereignty, and create opportunities for Canadians. At the same time, Canada's responsible domestic policy laid the foundation for
- this foreign policy by restraining spending and focusing on catalytic investments. Canada ensured it had the
- financial strength and economic stability to pursue an independent decisive role abroad.
- The federal government uh uh has been growing spending as a whole at over 7% a year. Uh that's twice the rate of growth
- of the economy on average. It's not a sustainable situation. So we need to
- rein in spending. We need to find efficiencies. But in finding those efficiencies, we create the room for
- these big investments. Government there's a bit of measures to catalyze investment to catalyze enormous private
- investment. That's how we're going to give ourselves more than anyone else can take away. This internal stability is a
- 11:02
- sharp contrast to the chaos in Washington where even statistical agencies can be politicized.
- I think the idea that somebody might lose their job because of a bad number is a very very poor way to manage the
- government. These are not political people. These are statistitians that work for our government and they don't
- care who's president. And I think that's the mistake that Trump's making. In truth, the Supreme Court's ruling
- won't mark the end of this story. It will be the starting gun for a new race.
- It will officially close a failed chapter of US coercion-based foreign policy. And it will open a new chapter
- for Canada, where after years of preparation and patience, Prime Minister Carney can finally make the decisive
- move to permanently reshape his country's role in the North American and global economic order. The dialogue
- between the two sides will continue, but the balance of power has changed forever. I last spoke uh exchange
- 12:00
- messages. I last spoke uh to the president u Monday evening. Don't expect immediate white smoke on one of these
- strategic uh uh sectors, but that's the type of conversation that we're having uh and will continue to have.
- Canada is no longer waiting for Washington to deliver results. It is making its own.
>br>
- Trump Pushes Through Free Trade Dairy Agreement
- 35% tariff is now in place on some Canadian goods. And one Canadian
- industry that Washington has taken particular issue with is dairy. On August 1st, 2025, President Donald
- Trump signed an executive order raising tariffs on Canadian goods outside of USMCA from 25% up to 35%.
- This move, confirmed by Reuters and the Associated Press, took effect immediately, and it escalated the trade
- tensions between the two countries. Canadian Prime Minister Mark Carney
- expressed what he called deep disappointment over the decision, stressing that this was a measure
- 13:00
- harmful to both sides. Now, while dairy products weren't directly targeted by the new tariffs, Canada's dairy supply
- management system has long been a thorn in Trump's side. He's repeatedly called it an unfair trade barrier, shielding
- Canadian farmers while limiting US producers from entering the market. According to Wikipedia, this system is
- designed to stabilize prices and protect family farms from being wiped out by large-scale US aggra business. And
- Canada has stood firm, saying time and again that it will defend the system at
- all costs. Ply management is designed to protect dairy farms. There are limits to how
- much Canadian dairy farms can produce and how much from the United States can be imported to Canada. According to RBC
- and Wikipedia, Canada set up its dairy supply management system in the early 1970s under the Farm Products Agencies
- Act. It's a mechanism that has lasted for more than 50 years built to
- stabilize prices and protect thousands of family farms from being crushed by
- 14:04
- massive US agrous operations. Industry sources like the Bullvine
- explain that this system caps US dairy imports at about 3.5 to 3.6% of the
- Canadian market. And if imports go above that limit, tariffs skyrocket, 241% on
- milk and nearly 298% on butter. These steep tariffs combined with strict
- import quotas keep Canadian farmers income steady and prevent wild swings in
- retail prices. It's why the dairy sector has become one of the most heavily shielded parts of Canada's trade policy.
- Dairy industry falls under Koozma regulations, but US President Donald Trump has repeatedly complained, saying
- it's an unfair deal for his country's producers. According to the USDA Economic Research
- Service and research from the University of Wisconsin Madison, American producers now export about $877
- 15:02
- million worth of dairy products to Canada every year. That's a sharp increase from just 525 million in 2021.
- By comparison, Canada's dairy exports to the US are only around 300 million
- because imports are capped at 3.6% of the Canadian market under supply management rules. For President Trump
- and his allies, these limits, combined with steep tariffs once quotas are exceeded, are seen as proof that US
- farmers are being denied fair access. Just weeks before Washington imposed new
- tariffs, Canada's Parliament passed Bill C202, the law bans using supply
- management as a bargaining chip in international trade talks. It passed with rare bipartisan support after years
- of pressure on Canada to make concessions. This move reflected a broad consensus in Canadian politics, not just
- in Quebec, the heart of the dairy sector, but also in British Columbia, Alberta, and even the Northwest
- 16:05
- Territories. Farmers across the country view supply management as a pillar of
- rural stability. Industry groups warned that loosening the rules too much could allow foreign dairy to take up as much
- as 18% of the domestic market. that would threaten the entire system,
- leading to farm closures, job losses, and deep setbacks for rural economies.
- In other words, Trump's claim of protecting American farmers by targeting Canadian dairy is both contradictory and
- political in nature. The US is already running a sizable dairy surplus with
- Canada. And the reality is Canada's supply management system doesn't slam
- the door shut. It sets a clear quota to protect local producers. A policy by the
- way that the US itself has used in other industries whenever it wants to shield
- domestic interests. At some point, you know, his view is maybe a tariff is better than a deal.
- 17:03
- Michigan's governor has directly raised the alarm with President Donald Trump after the damage his tariffs will do to
- the auto sector in America's car capital. In Michigan, the beating heart of
- America's auto industry. The latest numbers show that tariffs are doing the exact opposite of what Donald Trump
- promised. He had insisted that higher tariffs would bring production back to America and protect jobs. But the
- reality is painting a very different picture. According to Reuters, General Motors saw its second quarter profits
- drop by $1.1 billion because of import tariffs, and the company warned that
- total losses this year could reach as high as 4 to5 billion.
- AP News reported that Stalantis, the parent company of Jeep and Ram, posted a loss of $2.3 billion euros, equal to
- about€2.68 billion in the first half of 2025. Roughly 300 million of that came
- 18:02
- directly from tariffs. And total damage for the year could hit 1.5 billion or
- around $1.7 billion. Ford hasn't been spared either. Reuters and CBS News
- confirmed the company took an $800 million hit in the second quarter alone,
- forcing it to cut its fullear profit forecast from 7 to 8.5 billion down to
- just 6.5 to 7.5 billion. These massive losses make it clear
- instead of strengthening the American auto sector, tariffs are draining profits, driving up production costs,
- shrinking margins, and putting jobs in Detroit at risk. And the pain doesn't
- stop there. Consumers are now facing the prospect of car prices jumping by
- thousands of dollars, turning Trump's promise of reviving US manufacturing
- into a pledge that backfired. The new import taxes rolled out in the last several months could lead to more
- 19:01
- factory floor job losses, price hikes, and lower profits. Donald Trump once declared that slapping
- high tariffs on steel, aluminum, and imported auto parts would bring manufacturing back to America and cut
- dependence on foreign supply. But since June 4th, 2025, the United States raised
- tariffs on imported steel and aluminum from 25% to 50%. And the results have
- shown the opposite effect. Canada, America's largest aluminum supplier,
- accounting for 47% of total imports, now faces a 35% tariff on goods outside
- USMCA starting August 1st. Mexico, although given a 90-day delay, is still
- staring at the threat of a 50% tariff on steel, aluminum, and copper. Beyond North America, India, an exporter of
- auto parts worth 7 billion dollars to the United States, has also been hit with a 50% tariff, a move expected to
- 20:00
- cut its shipments by 15 to 20%. For an auto supply chain that depends on
- dozens of imported components and materials, from car frames and underbodies to leather and interiors,
- these tariffs are not only pushing production costs sharply higher, they're directly eating into the profits of
- American automakers. Many US-based suppliers themselves import key parts, which are now taxed
- heavily before they even reach assembly plants in Michigan. The result, instead
- of strengthening domestic manufacturing as Trump promised, these tariff policies are leaving the auto industry with
- soaring costs, tighter margins, and more pressure than ever at the very heart of
- America's industrial base. So far, auto companies have been eating the impacts of the tariffs, and that's
- what we're seeing in the latest profit reports. It's only a matter of time until the companies pass those costs off
- onto the customer. At first, the big three, General Motors, Ford, and Stellantis, tried to swallow the tariff
- 21:01
- costs themselves, hoping to keep sales steady and avoid shocking consumers with price jumps. But according to the Center
- for Automotive Research, the 25% tariff on cars and parts alone could pile an
- extra $18 billion in costs on the industry in 2025.
- And that doesn't even count the ripple effects from the 50% tariffs on steel and aluminum or overlapping tariffs from
- other trade partners. The impact is already showing. General Motors is projecting losses of 4 to5
- billion this year. Ford expects around $1.5 billion while Stalantis is also
- taking billions in hits as import costs for key components surge. The Alliance
- for Automotive Innovation warns that once these costs cross the breaking point, automakers will have no choice
- but to shift the burden onto consumers. That means new car prices will rise
- sharply. Budget-friendly models will disappear from the market, buyers will face fewer options, and the roll out of
- 22:05
- new technologies, especially electric vehicles, will slow down.
- With the US still lacking large-scale domestic battery producers, high tariffs on imported batteries and critical parts
- are cutting into profits even further. In Detroit, reduced production means
- fewer cars on the market and fewer jobs on the assembly lines, particularly in
- communities that have already spent decades recovering from past recessions. Analysts warned that if today's tariff
- policies remain in place, the next three years could bring a steady decline in both sales and employment. Trump once
- sold tariffs as a tool to bring manufacturing back to America. But the
- reality is turning out differently. Cornerstone industries like autos are being drained by skyrocketing costs, and
- the time will come when they simply can't carry the weight anymore. number one American vehicle built and made
- 23:03
- around the world is the Ford F-S series trucks. They're all aluminum and they buy it from Quebec. Those things and I think, you know what, some
- of that pressure uh of the self-inflicted harm that they're doing on the US auto sector is starting to
- finally bubble up. After the Trump administration imposed a 50% tariff on imported steel and aluminum on June 4th,
- 2025, the steepest increase across all sectors. The impact rippled instantly
- through the North American market. Canada, America's largest aluminum supplier with about 47% of total imports
- and also one of the leading steel suppliers, became the direct target of this tariff wave. Starting August 1st,
- 2025, Canadian goods outside USMCA, including most steel and aluminum
- products, were hit with an additional 35% tariff on top of the measures already in place. On the commodities
- market, spot aluminum prices on COMX surged to more than 70 cents per pound,
- 24:04
- nearly double the level at the end of May. Concerns about supply shortages and rising import costs fueled the spike.
- Canada's metal sector, especially major producers like Riotinto and Marid Industries, warned of possible
- production cuts or export shifts, while the Unifor Labor Union projected that thousands of jobs could be lost if
- access to the US market keeps tightening. For the United States, striking Canadian
- steel and aluminum has meant driving up costs across multiple industries, especially autos and construction. Steel
- and aluminum are essential materials for vehicle frames, body panels, structural
- parts, and also for infrastructure projects. With input prices climbing, US
- manufacturers are forced to choose between shrinking profits or raising prices, both of which risk eroding their
- market share at home and abroad. And this is where the irony becomes sharpest. The Ford F-S series, the crown
- 25:06
- jewel of American vehicle sales, is deeply tied to aluminum, sourced
- directly from Quebec. Every hike in tariffs means higher costs baked into
- America's top selling truck, a symbol of domestic pride, but also of global
- dependence. Analysts point out that this pressure will not remain hidden for long. It is
- already seeping into corporate balance sheets, investor confidence, and even into the wallets of ordinary buyers.
- In simple terms, this is not just a story about trade disputes. It is about
- how self-inflicted policies can backfire, leaving the very industries they aim to protect weaker, more
- vulnerable, and struggling to compete in the long run. Tremendous impact. I mean, these are customers and distributors we had been
- dealing with for many, many years. Uh unfortunately the uh threat of the tariffs was enough to create an
- 26:01
- uncertain uh business climate. So our uh American business evaporated essentially
- overnight in February. Canada is a critical link in the North
- American auto supply chain with car and auto parts exports making up 27% of its
- total exports to the United States. That makes Canada the second largest vehicle
- supplier to the US market. But trade tensions and Washington's new tariffs
- have already hit the industry hard. In April 2025, Canadian auto and parts
- exports to the US dropped by 17.4%. Passenger cars and light trucks alone
- fell by 22.9%. This sharp decline pushed Canada's trade deficit to a record 7.1 billion Canadian
- dollars, equal to about 5.2 2 billion during that same month. According to
- Reuters, by May 2025, Canada's export share to the US had fallen from 78% down
- 27:02
- to 68% of its total exports, translating into a loss of about 7.7 billion
- Canadian dollars, around 5.6 billion US in trade value. While exports to the
- European Union, the United Kingdom, and Australia grew by more than 42%,
- those gains were nowhere near enough to offset the losses from the US market.
- And the impact is not just on paper. Production lines have been cut back,
- shifts reduced, and in some cases, factories forced into temporary shutdowns. Thousands of jobs are at
- risk. Companies are scrambling to pivot, shifting focus to the domestic market.
- diversifying their product lines and investing in long-term production capacity. Prime Minister Mark Carney's
- government has chosen a strategy of building long-term resilience rather than short-term retaliation. The goal is
- clear to reduce dependence on the US market and shield Canada's manufacturing
- 28:04
- base from future trade shocks. But the deeper story is about confidence. For
- many Canadian firms, the US has long been a stable, almost guaranteed market.
- When that foundation crumbles overnight, first from the threat, then from the reality of tariffs, the ripple effects
- spread far beyond trade statistics. It undermines trust, chills investment, and
- forces businesses to rethink decades of integration. Analysts now warn that if tariffs remain
- in place, Canada's auto sector could face permanent restructuring. Plants
- might be redirected to serve Europe and Asia, while American buyers risk losing
- both supply and leverage. What was once a seamless continental supply chain is
- fragmenting into competing regional blocks. And for workers on both sides of the border, that means more uncertainty,
- 29:00
- fewer opportunities, and a future clouded by instability that shows no sign of fading. I'm listening to uh Ford
- and General Motors who are pivotal in this, starting to say things like, 'You're burning all of our profit.'
- As Canadian suppliers buckle under the weight of tariffs, the impact doesn't stop at the border. It flows straight
- into Detroit, the heart of America's auto industry. Key raw materials like steel and aluminum, especially the
- aluminum from Quebec that the Ford F-series relies so heavily on have become much more expensive, forcing
- assembly costs to spike across the board. Independent research group Alix Partners estimates that these tariffs
- could raise vehicle prices anywhere from $4,000 to $9,000 depending on the model.
- Crossovers would climb by at least $4,000. Large SUVs could rise by as much
- as $9,000 and electric vehicles might surge by as much as $12,000.
- 30:01
- For families already stretched thin by inflation, those added costs could make new cars completely unaffordable,
- pushing many buyers to delay purchases or shift to the used car market. The Trump administration may have aimed to
- pressure Canada, but this industrial strike has landed hardest on Michigan.
- Industry watchd dogs have warned that the 50% tariffs on steel and aluminum, combined with 25 to 30% duties on auto
- parts coming through Michigan's supply chain are threatening as many as 600,000 manufacturing jobs. And this is not just
- a numbers game. Behind every statistic are workers on the line, suppliers in small towns, and dealerships that depend
- on steady sales. When prices rise and production slows,
- the shock travels outward, fewer shifts in factories, less demand for parts,
- shrinking paychecks and households that have already endured decades of economic turbulence. Analysts say that once trust
- 31:00
- in stable supply chains is broken, rebuilding it takes years, sometimes
- decades. In the meantime, competitors in Asia and Europe are waiting to capture
- market share, selling vehicles at lower costs and accelerating technology
- adoption, especially in electric cars. Rising costs are already bleeding into
- consumer prices. And for companies and communities alike, exhaustion is no longer a future risk. It is the reality
- of today. If the uh White House does things that are good for Detroit, they're going to be good for Ontario.
- The problem is they're aiming at everywhere and hitting us all and they're going to sink uh important can uh American
- companies along the way. Trump's steel tariffs were launched as a punishment aimed at a neighbor. But in practice, it
- is America that is taking the heaviest blow. While Canada has moved quickly to pivot,
- pouring money into domestic investment and widening its reach beyond the US market, the American auto sector is
- 32:04
- stuck in a fractured supply chain. Costs are climbing day by day with no clear
- escape in sight. This is no longer just a trade dispute. It has become a brutal
- test of economic leadership. And as the pressure keeps mounting, the truth is undeniable. Canada can endure the pain,
- but it is US industry that is bleeding and in some cases beginning to collapse under the weight of its own policy. In
- Ontario, the largest hub for auto and steel production in Canada, provincial leaders have signaled that if tariffs
- continue, they are prepared to strike back. That response could include retaliatory tariffs aimed at sectors of
- the American economy that depend heavily on the Ontario market, agriculture,
- chemicals, and industrial machinery. With more than 100,000 jobs tied
- directly to the auto sector and related industries, and an export network worth
- 33:00
- tens of billions of dollars each year flowing into the United States, Ontario
- is not just a bystander. It is the front line of Canada's trade war strategy and
- it has the power to inflict real pressure if Washington refuses to change course. What makes this moment
- particularly volatile is the interconnectedness between Detroit and Ontario. The two regions have built
- decades of joint production where car parts cross the border multiple times
- before a vehicle is fully assembled. Any tariff shock disrupts that rhythm instantly, leaving both sides scrambling
- to absorb the hit. But the difference is in resilience. Canada through Ontario is
- hedging its bets with Europe and Asia, diversifying its trade and investing in long-term stability.
- The US, on the other hand, has doubled down on a tariff first policy that is
- cornering its own industries. Analysts warned that if this continues, the very
- 34:02
- companies meant to be protected, Ford, GM, Stellantis, could see their
- competitiveness eroded, not by foreign rivals, but by domestic policy missteps.
- In simple terms, Trump's tariffs were supposed to deliver leverage. Instead,
- they are setting up a lose-lose scenario where both Detroit and Ontario suffer,
- but America shoulders the deeper, more lasting wounds.
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