Tariff war and it's impact on trucking

Hate to break it to you, but American independence was only won with the assistance of France, Spain and the Dutch - not to mention the 'neutral powers' that actively traded/provided credit with the rebellious colonies while restricting trade with England.



Remember it was the French Navy which prevented Cornwallis from being resupplied, and it was French artillery which pounded Cornwallis' defenses. After Yorktown, Washington wanted to push on New York and Charleston. The French decided to try and take Jamaica instead. Washington was only able to stop English forces from pushing out from their coastal strongholds. King George III gave up the 13 colonies to save Canada, Jamaica, and India.

NAFTA was revised in 2018, did Trump make a bad deal then that now requires readjustment? Biden didn't change any of the China tariffs either. Mexico is sending drugs to the US? Yep, but the US is sending guns to Mexico which make it difficult for the Mexican government to deal with the Cartels.

I'm willing to fight, and I'm willing to sacrifice - just give me clear reasons and clearer goals. Right now, Trump has given me neither.

 

"Goliath is to big, David should just give up!"

When an entity is forced to the bargaining table on their knees and a gun in their mouth, it's hard to negotiate. Canada and Mexico tried talking in 2018, came to an agreement and now are staring down the barrel of a gun again. If they don't show a willingness to fight, they're screwed. They also know that current American paradigms means there are deals to be made with OATUU, ASEAN, the EU, and South America.

 

Judging from the booing of the US National Anthem over the weekend, similar to the Bud Light kerfuffle - in the short term demand is going to drop. Once people get over their feelings - if Jim, Jack, and Johnny cost 25% more than Canadian Club and Crown Royal, it's not going to matter what's on the shelf.

 

Canada RUNS on the US!

I worked for the US branch of a Canadian tank/chemical carrier and the amount of various liquid commodities hauled into Canada and delivered to a multitude of their industries as BLIND shipments where we delivered on papers from the importing chemical distributor instead of the US producer keeps a lot of their industries running.

Guess where those industries can turn for an alternate supply?

USA!

Also; please remember that tariffs are based on the actual value of the imported goods so the China to US cost before any added 'in-country' markup and distribution costs.

 

Bad times make strong men , strong men make good times , good times make weak men , weak men make bad times .

 

That’s it!!
I’m taking my ball and going home.

 

We’re far too dependent on foreign goods. It’s not only short sighted profits over long term economic stability. It’s more importantly about our ability to survive without relying on others. NAFTA sold out the Workers. Can’t compete with Mexican and especially Chinese wages. Not to mention China is a Communist Country. To turn a blind eye to the Sweat Shops Slavery just to make a Buck is wrong. I think we should use our Market buying power in every way possible to benefit this Country. Before it’s too late.

 

I don't have much to add to the cause/effect discussion going on in this thread, because I'm not that smart of a man to comment intellectually. All I've got is I've seen 2 trucks pulled over by state troopers and border patrol these past two weeks, where LEO is rifling through the cab of border affiliated trucking companies. 1 on the AR side of Texarkana and a Forza truck south of Shreveport.

I know Trump and BP are not ##### around anymore.

 

Well tarriffs, or even the threat of them will have impacts on both sides of the border.

One of the family businesses down in Eastern Canada is the sales of minerals to, currently, 5 businesses in the USA. It's processed ore being sold. Primarily cobalt and platinum,

2 contracts expire this year, the contracts are not being renewed or extended and new buyers have been secured in Asia and Europe.

These two business holders have been advised of the end of the supply contract and will have to seek the mineral stocks elsewhere.

1 contract expires in 2025, 2 more in 2027.
We will likely extend the 2025 contract as it's a client we have been with since we started the business decades ago

2027 contracts will likely not be extended or renewed.

Why? Simple...the uncertainty and chaotic nature of the current policies to sell goods into the United States provides more risk than it is worth.

Stable policies relating to the movement of goods and the associated costs into the United States are needed, otherwise there is associated risk that we don't have in other markets..businesses like predictable rules and regulations. Currently the rules change on a moments notice, the product we sell is easily sold elsewhere and we are proceeding to do that.

It is unfortunate, but on the upside, it will reduce the trade deficit that the United States has with Canada by the value of those contracts, so there is one result the US wants.

Downside of course is the loss of minerals used in manufacturing by these companies in the US.

The minerals can be sourced elsewhere, if other suppliers don't decide to reduce or eliminate their business with the US and sell to Asian and Europe instead, and if available supply that is not already under contract.

Just a small look at how this all results in canadian businesses looking to diversify to be less reliant on sales to the US.

For a Canadian business the US market has always been an easy maket to work with. Same language, similar laws, transportation is simple and direct, timezones are complimentary,banking is reliable and easy, large vibrant economy etc.

Many businesses, like ours, have put all pur eggs into one basket, the uncertainty now surrounding the ease of trade with the US has us diversifying to other markets.

Having said that, investments(stocks/bonds/debentures) I hold in the US in US dollars are not moving anywhere as that's a whole different beast compared to selling product,