Lovely February, usually a traditional coastal reminder of the The threat of 25% tariffs on Canadian goods, proposed by the U.S. President, has resulted in a “pause” for 30 days.
Salt Spring Island
In this timeline, Canada will be required to show a serious response to the border issues of people illegally crossing into U.S., and also the passing of fentanyl into the U.S. from Canada. The Canadian government has taken solid measures to do this.
A similar response to the 25% proposed tariffs on Mexico, for southern U.S. border, also resulted in a 30 day pause.
Canada
It is essential that Canada would look into protecting its citizens from both illegal immigration and fentanyl drugs, quite apart from the U.S. request. This may be a long overdue response from the Canadian government, working on behalf of Canadians.
Meantime, there is a sense that a rupture of good relations between the U.S. and Canada occurred. That kind of easy trust may take time to rebuild. That said, it’s important to keep strong connections.
Inter-provincial trade is long overdue
However, the much vaunted idea of inter-provincial trade is long overdue. If this is the outcome of the initial tariff threat, that is definitely something that each province needs to address. If not done, then the provinces have misunderstood the importance of such a shift.
After a few days, while the dust settles, I will comment on current local market conditions and note any repercussions. Keep an eye, meantime, on our currency.
