His messing with trade agreements and tariffs. More importantly, his proposed tariff scheme will impact Canada sooner and harder than any other giiven the trade relationship. The most conservative estimate is 0.9% of GDP. Other projections are higher on up to 2.4% as well as potential recession depending on the ambient economic performance.
Yeah, l suspected as much. Eventhough Canada and Australia are similar in many ways, our economies are very different. Being geographically close, I suspect yours is very linked in with the United States.
The Australian economy is very unique; it is not tied in much with the U.S, but it is very tied into China for export income, and much of our economy is in natural resources from mining. Our mining sector has helped pay for many things in Australia, but we are also very vulnerable because our main incomes come from high substitution industries (farming and mining), and our country relies on China more than any other country, and we don't have much of a specialist high technology industry, and we have little manufacturing left either. Our lucky days are coming to an end though, and we are not diversifying enough to avoid the inevitable. We have too many dumb politicians taking the easy way out by putting most eggs in China's basket.
Economics school teaches to get rid of tariffs, but the reality is that we can't compete with low wages from Asia. We definitely need to protect certain industries, especially manufacturing and keep our jobs local. If we don't we get the following situation:
- China becomes the manufacturing base of the world
- China becomes the technology base of the world
- China becomes the energy powerhouse of the world (solar panels, batteries, and wind turbines manufacturing)
Of course, what Trump says and what I say are different things involving different economies, but l can see the basic principles of why Trump wants to introduce tariffs. I feel your pain
Thruth
, it ain't gonna be good when your local industries suffer from Trump's tariffs.
www.nbcnews.com
