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Canada could close its airspace to all planes not going to a Canadian city, or it could embargo electricity to the northern tier of states. Without Canadian electricity, NY State is hurting bad. Canada can also lease land to the PRC for bases. Violates NAFTA and NATO treaties,
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Yes, or kick out the DEA and other U.S. law enforcement (after a hushed backroom threat).
retaliatory tariffs are politically necessitated -- you'd get lampooned as a pushover if no action was taken.
On top of that, it's about future incentives too!
If we think of the tariffs as an exogenous shock, couldn’t it theoretically be economically efficient in the short-term for Canada to put a high US import tariffs on goods where we were net exporters
Small cost to domestic consumers, large benefit to domestic suppliers?
Placing additional excise taxes on tariffed exports might be a strategy …
Quote
Max
@max_sixty
canada should sanction the 30 companies in the dow jones
trump exactly the sort of guy to think in "dow points"
big headline, small collateral
Plane flight full of Palestinian refugees to Calgary and then bus trips to the Montana border would be really good retaliation.
Also highly dubious to cause more fracturing in the world when we currently have a full-blown land war in Europe and being surpassed in global trade by China
This is the essence of "Getting to Yes" -- Canada and Mexico should not take it personally, but should find the win-win solutions. Get creative!
Trump can increase software license tariffs by 10x, and Canada would crumble.
All Microsoft, Apple, Android and Red Hat licenses including app stores go up by 10x. Maybe 100x.
They would collapse in a day. They don't want to push their luck.
You have no idea how tariffs work or what is the purpose of this particular round of tariffs.
As the White House announced last night, the United States imposed 25% tariffs on Mexico/Canada and 10% on China. The tarrifs are temporary as long as conditions for their removal are
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This is the most dense and naive post you've made in a while. You seem to struggle with basic economics.
Canada and Mexico’s economies combine for one seventh of US GDP. 80% of their exports go to the US.
They will comply or get sent into a recession. Everything else is
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Odd that you choose to give advice to foreign counties to hurt your own.
>Maybe Mexico could offer bus rides from Guatemala to the border.
Human trafficking as revenge? that is illegal and why we are securing the border.
So psychos like you can no longer do this
Yes economic war is literally a lose/lose game.
But it is also like prisoners dilemma in a multiple round game—the best strategy is cooperate unless betrayed, but always retaliate.
blogs.cornell.edu/info2040/2015/
True in an economic sense minus the FX stuff. (Predicting FX rates based on trade balances is a fool's errand)
But it's wrong in a game theory sense. If your opponent senses they have leverage over you, they will push for more in the next round of negotiations.
In economic terms maybe, but it seems like there's a pretty good game theory rationale to inflict costs on the first mover in order to end the tariff war.
But this doesn't actually make sense, because Canada imports more consumer and manufactured goods, so letting the exchange rate float (I.e. depreciate) would just end up impoverishing us.
Very different than a US vs. China trade war that actually has a significant imbalance .
Why not? I think the point is that if you are Mexico or Canada, you want these choices of Trump's to hurt so that he gets voted out and these issues go away.
It makes economies less interconnected.
Not being connected so much to the US economy seems good in times of Trump.
Teslas are too popular, and telling citizens which cars you can buy is a lot more intrusive than eliminating a few brands of liquor. And I love alcohol! 
This feels like a horribly naïve approach to threatened annexation. I think there's a good case for Canada (and Mexico) to open up even more to the rest of the world, but you can't simple look the other way on this kind of existential threat to sovereignty.
I think tariffs should be heavily targeted at a American corporations which have been found criminally guilty in the last 5 years and all directors, officers, past and present of the corporations along with their associates. Both the companies and individuals should be levied
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Its to get them to stop, hence retaliation. Though this assumes Trump is reasonable. It will probably not amount to much.
I'm guessing this mentality of "we should do what we can to encourage the failure of Trump's more outlandish policies" will be rife throughout the executive branch.
Mexico can leverage the threat of inviting Chinese auto manufacturers to pressure the Japanese and Korean car companies and their suppliers to build out fully integrated operations within Mexico's borders.
This is clearly untrue. It’s like saying you will NOT launch yor nukes in a MAD staredown.
“You put a gun to the head of your consumers so I will put a gun to the head of my consumers in response”
Thanks for saying this. As a lay person, I was confused why, if we say tariffs are passed down to consumers, should Canada and Mexico be concerned and retaliate only to pass on their tariffs to their citizens
Why, if you were Canada/Mexico, do anything in response to tariffs? The tariffs hurt the us not them?? What am I missing?
Canada's market isn't big enough for a Tesla ban to mean shit. The only way to get rid of the tariffs is to make them so damaging to the United States, they become politically toxic.
Otherwise they'll be permanent.
They want to inflict real pain, not just political pain. The age of liberal democracy is over, both domestically and internationally.
Nations are run by humans not logic robots. Otherwise WWI would never have happened.
This ignores basic game theory. Trump thinks he can disrupt trade anytime he wants and that itself hurts trade. Trump needs to know this spars but, so this is the last one.
this can't be correct. ive been reliably informed that diversity is our strength
Maybe ban Twitter too? Daily health inspection at Trump hotels. Ban Trump shitcoins. Kick Cantor out.
Canada was smart by only retaliating against red states, given their biggest trade states are blue.
it's 12D chess
cut off your friends hand, cut off your own finger, to act as warning to China
dumbassine (new word I just invited - anyone can use it with my permission)
Skeptical this is necessarily about making the smartest of decisions as much as it is trying to send a message that nations won't be so easily bullied.
Canadians and Mexicans are not that much different than Americans. They want a knee jerk, punch back reaction w/o thinking too
across the board retaliatory tariffs are indeed probably a bad idea - it's what the orange fool is doing, so yeah, no.
but retaliation there must be. a 1000 % tariff on teslas and a complete block of x.com are nobrainers to start with.
(posting here, i know)
Can we all please just accept that neoliberals like this clown have absolutely no idea what they’re talking about. What planet does this guy live on? JFC 
This is a really shitty argument. Sorry that you’re this upset over America being back.
There has to be a response, obviously. Canada and Mexico will do what they have to do and you, meanwhile, should write to your congressman and have them speak out about the madman ravaging America. 
Mexico gov't will hire the coyotes and professionalize them and build them more tunnels into the US.
'No more river crossings. You have a subway right into Mexican America.'
Even you admit that illegals immigrants are a punishment to Americans.
I thought immigrants were good Matt - why are you making it sound like bussing Guatemalans in would hurt the country?
Giving into bullies is not a winning political position. Every Canadian political leader has called for retaliatory tariffs. They are Canuks not cucks.
"Maybe Mexico could offer bus rides from Guatemala to the border."
We will invade if it comes to that. This isn't your daddy's Republican government.
Ah yes, Mexico helps facilitate human trafficking of minors and women to be taken advantage of by cartels, coyotes and other criminals. Brilliant strategy Matthew.
A better idea would be for Canada to stop enforcing IP and patent laws for American products.
Would be cool to see Canada/Mexico/China join their trade powers, just to say a fuck you.
How about banning Canadian and Mexican companies from exporting supplies to Tesla?
I have a hard time seeing the political benefit of more or less not fighting trump when he does this.
It’s speaking Trump’s language, it doesn’t really make sense but it sends the right message to Trump. For sure banning Tesla’s and X is a good idea too, that’s what Brazil did.
Trump has openly stated his goal is to destroy our economy and annex us. And we should "ban Teslas" and hope for the best?
I'm not sure you actually understand what is going on here or who would lose worse in this scenario, but it is definitely mexico.
They could instead stop turning a blind eye to fentanyl manufacture and trafficking. Find some other way to stick it to America.
