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this post was submitted on 26 Nov 2024
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The tariffs won't be effective on jan 20th. Certainly there will be specific ultimatums made to both countries, and it is irresponsible to set a tariff date, and then later "negotiate the specific threats/ultimatums" to reverse the tariffs. There are government agencies that need to prepare for policy.
Specific to Canada, there is a long history of free trade with comparable wages in auto sector, such that even some parts are shipped across the border for processing and shipped back. A conflict of interest with Musk, is that he doesn't mind destroying North American Auto sector, or big 3 anyway.
Trump himself signed the United States-Mexico-Canada Agreement (which replaced NAFTA) in his first term ensuring tariff free trade between the 3 nations. So Canada and Mexico are about to learn the lesson that trump's own signed legislation doesn't hold water.
That ended up as pretty minimal changes to NAFTA after a giant fuss.
Looks like Mexico and Canada will get to enjoy some free and prosperous trade between two abiding nations with a beligerant middle child crying about it.