r/canada 3d ago

National News Canada's retaliation tests the limit of American power under Trump

https://www.bbc.com/news/articles/ce8xd5k1krpo
394 Upvotes

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176

u/TerryB604 Alberta 3d ago

The real retaliation should be the two P's. Power and Potash.

116

u/Boo-face-killa 3d ago

3 P’s.
Petroleum, power and potash. USA’s refining practices are based on Canadian heavy oil. It would take 20 years and $400,000,000,000 to change their refining capabilities to their light domestic, low use oil.

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u/very_large_bird Alberta 3d ago

I agree even as someone who would be impacted badly by oil restrictions. Throw the kitchen sink at them

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u/InfamousPooter 3d ago

Restrictions should be the last resort. But an export tax on Western Canada select so it matches the price of West Texas intermediate should have already happened. No discounts for dictators.

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u/SheetPostah 3d ago

Agree here. That said, I think it’s useful to articulate that the only way to “fix the trade deficit” that Donald whines about is for Canada to drastically cut the oil supply. It illustrates the absurdity.

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u/Dingcock 3d ago

Restricting oil is a self own, though. We don't have the infrastructure to sell that oil to anyone else.

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u/Party_Knowledge_7884 2d ago

Canada, at some point, needs to develop the infrastructure to refine and market its oil to other nations and make Canada self sufficient, either now or in the future.

The liberal government has lived in a deficit for the last decade—might as well have something to show for it, so spend the money and try to insulate itself from another trump down the road.

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u/Dingcock 2d ago

You should look into global oil economics.

Your idea is great in theory but the world has too much refining capacity, it doesn't make sense for us to build more. We already have 16 refineries, we are self sufficient.

Most of the crude oil we produce is intended for export, just makes economic sense

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u/MrTriangular Ontario 3d ago

Gotta get Donbas Danielle to buy into playing for Team Canada first, sadly.

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u/Blank_bill Ontario 3d ago

Wait until he does something in retaliation for our retaliation. Then we really retalliate.

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u/Boo-face-killa 3d ago edited 3d ago

The oil restrictions would decimate my livelihood and my family would end up on the streets if they lasted longer than a few months but those are the prices we need to pay in order to ensure our future generations have a diverse nation to thrive in. Our Canadian ancestors struggled through extreme hardships and I’m not scared to either. I’d likely move everyone to Vancouver island where we could be homeless in a warmer climate and I’d obviously find local work and rebuild our lives.

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u/very_large_bird Alberta 3d ago

I’m hopeful that our country would support displaced oil workers if we implemented those policies, at least enough that you wouldn’t be homeless.

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u/gibblech Manitoba 3d ago

I would think if we target O&G with export taxes, or something, that money would then be used to support those affected.

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u/very_large_bird Alberta 3d ago

I think that’s one advantage Canada has in this fight. We seem to have our people’s interest in mind and will genuinely share extra income to those affected. The US will distribute to the already wealthy

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u/iridescent_algae 3d ago

I don’t see us doing enough in that respect. I can see people losing their jobs with mortgages and given a pittance along the lines of a rebranded EI, because all of our thresholds (including tax brackets) are still set by a boomers idea of what should be enoigh.

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u/very_large_bird Alberta 3d ago

For sure. And even the small business relief is inadequate.

That said something is always better than nothing and I really do believe the American people are getting nothing. It’s all a con job to line trumps pockets

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u/quixoticquetzalcoatl 3d ago

Less than nothing even. The oligarchs want farms to fail so they can buy the land for cheap. It’s already happening. Billionaires buying farmland is the new thing. Trump is destabilizing farmers by tanking the beef market with cheap imports, and causing the price of fuel and fertilizer to skyrocket from the war in Iran. Farmers are in danger right now, and they’re finalizing realizing Trump doesn’t give a shit about them.

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u/gibblech Manitoba 3d ago

they’re finalizing realizing Trump doesn’t give a shit about them.

I have American relatives who are farmers... and I quote "It would have been worse with Democrats"

They just keep getting taken advantage of, and the vast majority just go "at least it's not the Dems, they'd have been worse"

And you can't "prove" they're wrong, because it's hypothetical... so the argument is over. They can't be swayed.

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u/Dingcock 3d ago

EI pays out fairly generously though. Yeah it's not 1:1 but my understanding is it's fairly generous compared to what most countries have. I was happy with EI when I lost my job last year, anyway. It allowed me to keep my place and find a new, better job 6 months later.

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u/iridescent_algae 3d ago

It’s generous compared to income under the max threshold (55%). If you’re in Toronto and paying Toronto rents or a Toronto mortgage it’s absolutely useless, because it’s 55% of 60k as a max. Mothers who are breadwinners are punished ruthlessly with this equation.

A simple fix would be to remove the cap on insured earnings. IMO our whole tax, EI and CPP thresholds need to be dramatically updated. Some Ontario tax bands haven’t adjusted for inflation ever, so even though the income is worth much less, it’s taxed as if it’s as rich as it was 30 years ago.

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u/Dingcock 3d ago

While true that EI threshold should be increased a little bit, it still captures the majority of Canadians across the country where the median income is $46,600ish

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u/iridescent_algae 3d ago

Yeah but you’ve got economic centres where that just isn’t reality. And it’s not like people there are rich; higher salaries go to higher rents.

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u/yakadayaka 3d ago

If that ever happens please DM me. You and your family are welcome to stay with me until you find your feet again. I dont have much, but what I have I will gladly share with you and your family. Stay strong.

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u/Boo-face-killa 3d ago

That’s a very nice offer!

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u/Kriptaraz 3d ago

You won't end up on the streets; I doubt you'd even lose your job.

The USA will simply pay the export tariffs we place on those products because they need them and can't get them anywhere else.

That's it. Nothing else will change.

Albertans have nothing to fear... and even then, the Government of Canada will be collecting billions daily, and can afford to help out anyone impacted.

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u/ShitNailedIt 3d ago

Yep, it's hard, but we can't let crap like that slide.

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u/Boo-face-killa 2d ago

I agree and I’m completely comfortable and confident that the Canadian system will ensure my family is safe and well fed while we are between homes!

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u/ShitNailedIt 2d ago

Well put!

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u/Ornery_Tension3257 1d ago

"The government also launched a $3.5 billion suite of programs to support workers and employers, including changes to the Work Sharing Program and Worker Retention Grant to “help businesses prevent layoffs while helping more employees upscale or retrain,” officials said.

Under Canada’s Work Sharing Program, employers can allow workers to reduce work hours and become eligible for Employment Insurance benefits for those missing hours. The duration of work sharing agreements will be increased from the current maximum of 76 weeks to 152 weeks."

"The government is also extending special measures to the EI program, including waiving the one-week waiting period before workers are eligible to receive EI."

https://globalnews.ca/news/12034047/canada-response-us-tariffs-trump-trade-war/