War update

Well, troops, here we go.

After spending Sunday with his Indy cars and Natalie, the enemy combatant (aka President Trump) said he will nuke Canada with new 50% (yes, another 50%) tariffs on cars, heavy trucks, pickups, auto parts and steel, starting on the first of January.

He just posted this.

It’s hard to believe that he believes all this. If so, Trump has lost it. Canada is a trusted, reliable trading partner and energy supplier to America. The fabrications are immense. As Mark Carney said on Saturday, the Americans want to break us so they can own us.

The evidence mounts. The president has said he wants to economically destroy Canada unless it becomes the 51st state. Commerce secretary Lutnick stated flatly that, “Canada will not make cars.” On the weekend Trump’s transportation secretary Sean Duffy said the consequences of walking away from the trade negotiations on Friday night would be, “devastating” for Canada.

There’s more. The guy told American media that we are, “a country that doesn’t have a military,” that our, “single-payer health care system is failing” and that we kill defenseless people with a “record high” euthanasia rate (MAID).

So, recruits, this is what we face. Our general told the American president we would not cave, bend or bow. This made Carney the only world leader to do so, standing up to American imperialism and Trumpian ego and 19th Century economic policy.

It was the correct and principled thing to do. Our sovereignty was threatened when the Yanks sought to punish us with levies, tell us who we could trade with, bash our farmers and insist we get rid of cereal box French. The White House knows the separatist-leaning Parti Quebecois is strong in that province these days and that crazy Danielle Smith says an Alberta referendum on joining Montana will happen in the Spring. They’re trying to crash Canada.

“There are no winners in trade wars, only losers, including the United States and its consumers and businesses,” reminds economist Derek Holt. “The US had no right to be inserting language restricting French, flexibility in dealing with other nations, and other areas that all countries would view as germane to their national identity and sovereignty. They gave Canada no choice but to walk.”

So what’s happened thus far?

The TSX made modest gains in morning trading. The Canadian dollar lost half a per cent and stayed at the 72-cent range. Ottawa made it clear there is no desire to crawl back to Washington looking for salvation. Carney seems prepared to ride out the storm until after the US midterm elections, and perhaps until 47 has waddles off to Mar-a-Lago for the last time.

The new Trump salvo this morning escalates the war. As he intended.

Even before that missile hit, CIBC’s head economist Avery Shenfeld, was sounding dark.

“This story is not yet over, in terms of a further escalation of tariffs on Canada,” he warned. “The Trump administration could opt to retaliate to Canada’s retaliation to the US tariff that went into effect on midnight Friday, and therefore we could find ourselves looking at a dent to other Canadian exports. More broadly, an escalating trade war will be a negative for business sentiment, and run counter to our assumption that the worst economic hit would be behind us soon.”

It’s not. Obviously. Trump has responded emotionally, based on his own false view of the world. Carney shunned him. He can’t handle that.

One bank however, Scotia, says we should not worry excessively. The damage will be sustainable.

“Upon incorporation of the effects of new US tariffs, Canada’s expected retaliation, expected fiscal supports funded at least in part by tariff revenues, and other financial supports, we would lean toward lowering growth to 2.0% in 2027. CAD and the rates curve apply some shock absorption. It is likely that fiscal and other supports will also be offered by provinces which we have not yet incorporated. We do not estimate a material impact upon the national unemployment rate and only modest effects on CPI and core CPI over 2026–27.”

Of course, if you work in a sector affected by the new tariffs, or own a business in the crosshairs, this is devastating. It’s estimated the American president is about to wipe away almost 90,000 Canadian jobs.

Until the lights go off in New York, maybe.

About the picture: “This is a picture of our 4th dog,” writes Ralph. “His name is Trooper because he was born with a cleft palate and the breeder (very unusually) had the surgery done to correct that. That meant he was in a collar for over 6 months, but he put up with all of that like a real trooper. We got him when he was 4 during the second pandemic summer in 2021. He loves to run and jump. He jumps up on big rocks in the park, up onto the back of the couch to look out the window or into your lap when you are least expecting it. This is a picture of him on a walk in the park on a very windy day where he is being a ‘stormtrooper’”.

To be in touch or send a picture of your beast, email to ‘garth@garth.ca’.

Source: https://www.greaterfool.ca/2026/08/24/war-update/