Canada hits back at 'punitive' U.S. tariffs in 'turning point' in relations

Tariffs, and protectionism, are such an extreme measure. It should only be used against countries that you're going to war with. They should never be used in the course of normal trade.

America is like 50 countries with open border & free trade policy between them. Can you imagine what would happen if states decided to impose tariffs on each other?

Even though this decision may potentially affect my TN status in the states and more importantly will result in negative consequences for both countries, I am 100% behind Trudeau on this.

Canada's dairy industry has had a long history of protection. It is likely that this industry would not exist without this protection.

Not quite.

When 2 nations are each protective, it's bad for both.

If they are both open, it's generally good for both.

But - if one protects in a sneaky way, and the other is open - the it's amazing for the protectionist country.

So nations strive to be 'open' but then to sneak in stuff, or rather, sometimes they are open, but really are not.

It's impossible for American companies to sell into Japan for many reasons, arguably quality, but the way Japanese business syndicates work, they'll keep America out, irrespective of what the government says.

This was a huge thing in the 1980's and is the 'memory' that gripes Trump.

As for China - we don't have open trade with them.

America is considerably more open than China.

+ China has massive state-owned agencies, the subsidized markets

+ They have a 100% politically controlled currency

+ They have political capital controls

+ They require foreign entities to hand over key IP

+ They have any number of barriers (some on purpose, some not so much) to foreign participation.

+ China does not pursue those breaking IP rules.

China has had these advantages for some time, it's just that when they were poor, nobody really cared, but as they get powerful, it becomes an issue.

So the only choice is to play 'hardball' with such nations - because these nations won't react to anything else, and they'll only react to threats that are credible.

As for Europe, it's a different bag, but America has some decent beefs with Germany in particular.

As for NAFTA - that's a tough one. I don't think America has such a huge advantage, but wages are weaker in Cana/Mex which gives big opportunities in some ways ... but it also keeps Can/Mex standard of living lower in many ways. So the NAFTA gripe is more difficult to understand.

Put another way - the US has been having a 'trade war' with China for 30 years, it just wasn't ever a big deal.

And there are some issues (cars) that America has a reasonable beef with on Germany, for example.

I think Trump is a douche but he's not 'all wrong' on these things.

The way to "negotiate" with the Trump administration involves contributing to the Trump businesses.