My latest: war is declared – on us
Trump Tax™️.
President-elect Donald Trump may call it a “tariff,” but essentially that is what he is promising to impose on his first day in office: a tax. “Tariff” comes from a Turkish word meaning “prices.”
So, the price of just about everything is where the Trump tax will be most keenly felt. In his late-night post on his Truth Social platform, Trump wrote that he intended to slap tariffs “on ALL products coming into the United States.” His targets: China, Mexico and – notably – us.
For most of our history, we have been the closest allies and trading partners of the Americans. No more. If he carries through with even part of his tariff, Trump will effectively cripple the Canadian economy. He will be treating us like we are the enemy.
For Canada, the Trump Tax will mean that further interest rate cuts are over. Rates will likely need to go up, in fact, to shore up the Canadian dollar, which started to plunge the moment Trump made his announcement.
More broadly, the Trump Tax will strangle consumer spending just as the critical Christmas season kicks off. Many firms will scuttle Christmas bonuses, and not a few would now be contemplating layoffs – they’d be fools not to. Inflation will return with a vengeance, and some analysts are even quietly wondering if the Trump tax will usher in something akin to a depression.
Trump has fans in Canada, mainly on the political Right. Those partisans will dispute all of this, of course, just like the millions of Americans who ignored warnings from Kamala Harris that Trump’s tariffs would cost them, too.
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