Last week, Mr. Trump announced the US had ended all trade talks with Canada after the Great White North declared that it was moving forward with its digital services tax (DST). Canada, like every socialist nation on earth, needs revenue. The government meddles and crushes, and this planned decline would result in the government having to shrink or constituents being squeezed to the point of rebellion.
The government can never be allowed to shrink.
Hey, lets tax the crap out of America, which Canadin Tariffs have been doing for years, but the new boss isn’t like the old boss. Mr. Trump dropped the hammer before the DST was about to go into effect. We’re done and look forward to announcing some additional tariffs, which we’ll soon disclose.
Canada pretended to stand firm for about a day, then caved. The DST is in a coma until the Canadian Parliament can officially kill it.
I intended to write about why that was inevitable on Friday, but it got away from me, and I figured I had time. Not true, but the reasoning remains the same. Canda’s economy is in the shitter. Everything economically that matters is at or near a tipping point, some would argue past it. Real income is down, and costs are up. The country has the resources to be rich, but the Marxists want them left in the ground.
Much like Trade, Canada needs a Donald Trump to help it see straight. I don’t think that’ll happen on minerals or energy soon enough, but caving on Trade shows some signs of hope.
Canada needs good trade deals with the United States to continue functioning, and the paltry $ 2.7 billion it might gain from the DST tax would be dwarfed by the economic costs of losing a trade war that Trump knows he can win.
On a positive note for Canadians, Mr. Trump is not interested in screwing them over. He wants fair and balanced deals that benefit everyone, but understands that “free trade” is an idea that is impossible to achieve. The People’s Republic of Canada can’t operate that way, so whatever deal is arrived at will be better for America than what we have now and good for Canada.
Good and a lot better than what would happen if the new DST went into effect.
One more point, or perhaps problem, at least for the approved narrative. They’ve been complaining about a decline in Canadian tourism in American border states. I think they mean the slowing of illegal border crossings, foreign alien invaders being Canada’s chief export to states like New Hampshire and Vermont for the past few years. If they mean actual paying tourists instead of the ones who cost us money, a real trade deal will address that problem quickly enough.
And while we wait, even NHPR expects record tourism in the Granite State over the Fourth of July Holiday, presumably without the Canadians—affordable fireworks, more budget-friendly wine, beer, gas, cigarettes, and vape products. Beautiful views, lakes, mountains, no sales taxes (except on tourists (rooms and meals) and those are lower than they used to be.
Vermont could expect more tourists, I suppose, and maybe they do (I couldn’t find proof of that) but all the fun stuff – most stuff – is cheaper in New Hampshire. Beer, wine, tobacco, vape, gas, almost everything, and fireworks are legal. Y’all can buy sparklers across the river, but you can’t be trusted with anything else – so sayeth your political masters. Not that you always listen.
We notice those Vermont (and Massachusetts) license plates in the parking lots of the Beer and Wine Outlet and fireworks stores on the border.
I wonder if that counts as tourism, and if so, hint-hint to our neighboring states, you’re doing it wrong.
