David Vance SubstackRead More
Isn’t it strange watching Canada grovel to China, desperate for some crumbs from the Chinese table? Of course I expect the UK will follow the same course in the next few week as Starmer jets to Beijing to also beg for more crumbs but it is Canada that I want to focus on as I think it illustrates the folly being commited by Carney et al.
Let’s take a look ahead how liberal loving Canada has been doing ecomically over recent times.
The Trudeau years saw Canada shrink to almost zero growth. Carney thinks he can do something about this by cutting a deal with Xi Jingping. That’s why he went to China.
However, he has a problem. You see around 77% of Canada’s trade is with the USA and the Trump regime is not going to sit back and allow Canada to become a base for cheap Chinese exports. Here is what he has just said on the topic!
Note the “Governor Carney” taunt as well as the 100% tariff threat!
The immediate economic consequence of what Trump threatens is Canadian exports would collapse due to uncompetitive pricing. This would slash GDP growth by 3–4 percentage points initially and wipe out expansion for 2–3 years. Manufacturing (9% of GDP, 70% U.S.-exposed) and autos would face massive layoffs, while the Canadian dollar would be in free fall.
Would Carney REALLY risk this?
