Tariffs 101: Tariffs are not paid by countries. Canada does not pay them to the US. Likewise, the US does not pay them to Canada. The importer from that country imposing the tariffs, pays it. For example, if Trump imposes 50% tariffs on trucks made by GM, but GM... made them in Canada. GM is paying $50K in tariffs. Not Canada. And that $50K extra in tariffs, is ultimately paid by the consumer. Ultimately, it's a tax paid by businesses, passed down to the consumer of the country that imposed the tariffs. Likewise, Canada imposing tariffs on the US, only hurts Canadian customers. Countertariffs are done strategically, to prevent the flight of manufacturing, from Canada, to the US. In the end, during trade wars like this, consumers always end up paying the price.show more

Canada has been strategic . They tariff only on product that is also locally available. The US tariffing has been erratic and lands hitting the consumer.

Its more complicated than that. Consider how CPI works... Consumer Price Index. Let us say the price of a popular ketchup brand goes up significantly and that is in the basket of items tracked for CPI. Does that then cause CPI to rise? Not necessarily. Because CPI presumes customers will price shop competing brands and in so doing the relevant price is the price of the cheaper ketchup that customer is presumed to buy instead as the more expensive brand increases its prices. Let us go back tariffs. A given country imports various things from other countries and produces those things domestically as well. A product is made artificially more expensive that was being imported before. Does that then mean the cost of that product increases in the tariffing country? Not necessarily. Because there is often alternative supply. There is domestic supply and there are other countries the same product can be imported from. The US is not tariffing oil/gas/potash/minerals. What the US is tariffing is manufactured goods and lumber. Okay. Does the US have domestic and alternative supply for that? Yes... with abundance. So in fact, a tariff on Canada that hits these products but not the others can have little to no impact on prices in the US as alternative supply can pick it up. Can Canada do the same thing in the other direction? With their imports they probably can do the same thing. But they can't with their exports. Canada's export market is hosed. Much is made of other trade markets but that is naive. The rest of the world is already saturated, being forced to have rock bottom prices to compete with china, or are already protected markets and won't accept inputs. Canada's export market has nothing out there. It is the US or economic depression. Canada would find good markets for its energy, its lumber, and its minerals. But that mostly comes from one or two western provinces and the rest of the country has little to nothing. Further, this doesn't match population distribution. The populations that are losing economic viability are the largest populations. Further, the government has undermined exploitation and logistical movement of these extracted resources. So they can only be exported to the US for probably a decade regardless. And it is unlikely that will even change in a decade as canada would need to invest to change that and they're not. Here comes the power play of "well, we'll tell the americans we won't export X Y and Z if unless they make a deal that lets our eastern manufacturing base function." You could do that but it will likely lead to insurrection from the west. And further, the eastern provinces rely on the money from the west. If they stop exporting that money stops and their whole welfare system collapses. Canadian trade negotiators were clearly idiots. This is dumb. They shouldn't be making mistakes in real time that any jackhole on the internet can spot easily and sound smarter than them. This is supposed to be their job and specialization. But they're actually not professionals. They're nepotistic activist parasites that have no business being in the building much less the room where these negotiations are happening.

Consumers pay, it's that simple. Once prices get inflated and tariffs (taxes) are factored in, they will not return to previous levels.

Notice Mario doesn’t want to talk about Trump admitting to scuttling the trade deal. Hurts the ego to admit he bought into a con

Incorrect - Canadian companies will relocate to the US.

🇨🇦 lost this trade war before it started, see the chart below. Without America your economy would tank even worse than it has. Choosing to partner with China & disguising there goods as your own is incontestable.

By the way... >USA gives tariff rebates to Corporations, not consumers. Thats why Lutnik's tariff agenda is becoming incredibly unpopular down south.

GM stops buying Canadian cars/trucks, build them in USA, exactly what POTUS wants,the plants will shut down & move (started already). Canada needs either find other markets or build an economy not relying on anything that wont sell.Enterprise Architecture is needed to change LoB.

What you’re missing with tariffs Mario, it that the tariffing Country(USA)uses the tariff as revenue in lieu of income taxes, Texas, Florida, and most red states are lowering or have already lowered their state taxes and in some states property taxes to Zero - that’s the American system. I’ll take no taxes or lower taxes all day long.

We pay the tariff!

I think that President Trump should close the border and cut all trade with this corrupt regime

Your theory about tariffs are basically correct but ask yourself; where is the tariff money going in the US? Trump is divorcing the US from the central bank system that has put every country in the world in a spiraling debt. In a couple years, the US citizens won’t be in debt and won’t be imposing income tax on their citizens anymore. They won’t notice the tariffs.

Mario, I was thinking today that the best analogy of tariffs is PIMPING. LOL Two parties agree to conduct business under mutually agreeable terms but in steps the pimp (the gov't) to say "You can't have access to that PERSON over there until you pay me first."

I agree so saying that why do you continue to accept US tariffs on Canada?

No one gets Trump, hes playing the long game. He doesn't care about short term, he wants thing made in America, American manufacturing jobs, support jobs, payroll taxes. Tarriffs, we get the potential one time price increases. We'll worth the long term gain.

I couldn't help but focus on the chemtrails above..and think about how much that has hurt Canada..over the decades.. Nothing good is happening for the people..pretty much anywhere..

No shit Sherlock… thanks, tips.

The “customer” pays the tariff, if they WANT to buy that product for that price. The concept is- how badly do you want my product, and how much better is my product for that price point? Try to make up for it by shipping in cheaply made Chinese sh*t~ learn the hard way.

The difference is .Canada has choice to Buy Canadian agaisnt US as Canada still has manufacturing but US doesn't have much option to buy US made

Nice Chemtrails

Thanks for explaining. You are right about this. Watch how US will fold soon and sign a deal asap with Canada 🇨🇦 They can't mess with an economist PM!

There is a major component missing from your tariff explanation and that is choice. so long as choice exist, the tariff doesn't have to get paid. For example Canadain cars at tariffed at 50% but Japanese cars are tariffed at 15% and US cars are not tariffed at all.

Consumers... consumers pay ALL TAXES, tariffs, and "duties" Always There is only ONE taxpayer

That’s why you stop buying made in Canada and buy a car made in USA. Duh

Video is flipped right? Does that mean you’re creating content while driving?

The importer pays the tariffs...yes, but there is also the equilibrium pricing involved too. A product's price determine's if it is bought...meaning, importers may get the product, but if nobody buys it, then the importer would eventually go out of business (expenses vs revenue)

Carney should be putting tariffs on Mexico, not us. We’re running a $32 billion trade deficit with Mexico. They barely buy anything from us while selling us just about everything

This also don’t include just the regular federal and local taxes on the items. Are they taxing the whole amount or just the amount before tariffs. That also could add a lot of money to the product. Depending on how it is written up.

It’s almost as if GMC should be manufacturing in the United States instead of Canada…

Tariffs: hidden tax on everyday buyers.

Intentionally dense or gaslighting?

Its litteraly a redistribution of wealth.. Im thinking liberal aligned kickback companies get Tarrifs relief. Small companies will be ignored and go under.