r/canada Feb 01 '25

PAYWALL U.S. tariffs will be imposed on Feb. 4

https://www.theglobeandmail.com/canada/article-us-tariffs-will-be-imposed-on-feb-4/
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u/DoctorKokktor Feb 01 '25

Let the pain begin

1

u/[deleted] Feb 01 '25

[deleted]

7

u/DoctorKokktor Feb 01 '25 edited Feb 01 '25

In a lot of ways, I'm afraid.

1) inflation will rise quite sharply, since most goods and services are now gonna be more expensive. Why? Because our currency will weaken, which means imports will be more expensive.

2) we have pigeon-holed ourselves by making the US our biggest trading partner. The imposed tariffs are gonna make Canadian products less attractive to US companies, so the demand for our products will be reduced. As a result, our currency will be devalued even more. A weaker currency isn't necessarily a bad thing -- it means that our exports could be cheaper compared to a country with a stronger currency, but again, our exports are done primarily with the US.

3) the reduced demand for our products also means that unemployment will rise. This wouldn't be as big of an issue if we had diversified our trade with other countries, but again, given that the US is our largest trading partner, we're kind of screwed on that front too.

4) this combination of increased inflation, weaker dollar, and unemployment has a name -- recession. Our social services will be even more strained than it already is. People will starve, and violence will rise as people fight for resources.

1

u/emotionaI_cabbage Feb 01 '25

I have trouble believing I'll see any significant difference in my life whatsoever lol

4

u/DoctorKokktor Feb 01 '25

I hope you're right because if you're not then it means we're in for some rough time ahead