Carney FAILS on trade deal - Spins NO deal as a good...
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Summary
Wyatt Claypool talks about the failure to get a trade deal with the U.S. and why it's time to get rid of supply management and get a deal that actually works for all of us.
Transcript
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Hey guys, Wyatt Claypool here. Well, the inevitable happened. Prime Minister Mark Carney and his
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Liberal government have effectively failed to get a trade deal done with the United States.
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I know the deadline isn't until August 1st when President Donald Trump says he will put a 35%
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tariff on Canadian imports, but Mark Carney said his deadline was July 21st and it is currently
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July 22nd. And the dates don't really matter. Carney is basically front-running the idea that
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he doesn't really want to get a deal done because he says that getting a deal done is not more
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important than getting the best possible deal for Canadians. The problem is the best possible deal
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is impossible based on the way that he defines it. Basically that Canada gets everything it wants and
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there's not going to be a tariff at the end of the day. That's not going to happen. To get a good deal,
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you need to be able to compromise. There is no best possible deal here based on the parameters
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that the Liberals have laid out. We should be sacrificing the terrible supply management system
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in order to actually go down to zero tariffs. The supply management system isn't even good for
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Canadians in the first place. Premier Daniel Smith in Alberta has pointed out that in the quota system
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that exists in Canada, Alberta has 12% of the population, but we only get access to 7% of the
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quota amount. And now we have farmers being arrested for producing eggs outside the quota system.
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It's a silly system, but for some reason we are going to sacrifice our economy on the altar of
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supply management. But I want to get into more of what Carney is saying and what he's been doing
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leading up to this moment because it's so dumb. When you consider the fact that he's saying that he's
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focused on getting the best deal for Canadians and he's at concerts and he's basically saying he's not
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actually serious about getting a deal done. This is supposedly the elbows up golden age and nothing's
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actually getting done. We are going to be under a large tariff, which is borderline self-imposed.
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Yes, Trump is imposing it on us and I don't like that. I don't like tariffs at all. But it's self-imposed
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because the action that we could do in order to get tariffs taken off is very simple. I know Trump has
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highlighted the fentanyl issue and it's probably a bit overblown, but the main thing he's talking about
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right now is supply management and we won't touch it because liberals need votes from the ridings
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where farmers really like the system. And again, most farmers don't even get access to it in a
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substantial way. For most farmers in most of the country, it's more of a burden than it's actually
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a boon to them. But before I get into it, guys, I just want to mention, hey, if you like this show,
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make sure to leave a like on the video, subscribe if you are not yet a subscriber, and leave a comment
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on what you think about what's going on. But anyways, I want to start off with this article
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from the CBC. This is the headline that I had seen at the beginning of the day. It says,
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Carney says he'll only sign a U.S. trade deal, quote, in the best interests of Canadians.
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PM says he and premiers are working to strengthen Canada as negotiations continue.
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And this is the concerning point in the article. He says, quote,
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the government of Canada will not accept a bad deal, unquote. Carney said in French
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in Huntsmanville, Ontario, Tuesday, quote, our objective is not to reach a deal, whatever it
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costs. We're pursuing a deal that will be in the best interests of Canadians. And I would say that
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the best interests of Canadians should at some point include a deal that gets done at all.
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It's not in the best interests of Canadians to suffer under tariffs for an entire year,
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just to sign something, you know, way later, that does not actually make up for the economic pain that
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we suffer. The stupid thing about tariffs is it's going to hurt the Americans a lot too,
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because they're making it more expensive for their own people to buy certain products that they maybe
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get a significant portion of their supply from Canada for. But at the same time, it's still not
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exactly good to be the country that gets tariffed. So in the best interests of the Canadians, we should
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be trying to get a deal done fast while also removing the supply management system, which is
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effectively a tax on our consumers. It's a tax because it raises artificially the price of certain
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goods by artificially keeping the amount of supply down. That's the funny thing about supply
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management. It's supposed to make sure that Canada has a supply of all these goods and isn't outsourcing,
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you know, milk, chicken and dairy, you know, cheese to different countries. When in fact, in our own
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country, although yes, we effectively run a monopoly within our country, we also don't actually supply
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that much because we try and guarantee prices for farmers by not letting dairy farmers produce too much
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or letting people who are not part of the quota system produce and sell anything. It's stupid.
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But now I want to get to a clip of Carney talking about this because this is truly silly. The way
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he is trying to pretend like this is all a good thing. This is actually exactly what I promised,
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just not getting a deal done because that's good for Canadians in theory.
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How realistic is it to get a deal by August 1st?
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Well, that depends. I mean, there's two sides to a deal. We will, obviously, we're working on behalf
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of Canadians, and we will agree a deal if there's one on the table that is in the best interest of Canadians.
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I thought he was trying to negotiate on behalf of Bosnians. It's good that he's clarifying that he is,
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in fact, trying to negotiate for Canadians. We're back to mumbly ums and ahs Mark Carney,
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where he doesn't have a good answer prepared for something he clearly messed up on. And so now he's just
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going to like describe how things in the world work, rather than actually giving us a solid answer.
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As the United States will do in the look for the best interests of the US, there have been a series
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of discussions. Um, senior ministers have been in Washington, they'll be returning Mr. LaVla,
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for example, will be in Washington for the balance of the week, as will be my chief of staff, other
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officials for those discussions. But you know, they're complex negotiations, and we'll use all the time
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that's necessary. And agree, something that's in the interest of Canadians, if that's available.
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If it's available? What happens if there's, it's not available in terms of like his perfect deal that
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he's imagining? If it's not available? Well, no, we should sign. Shockingly, we should probably sign the
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best thing we can get. That's really what the best deal for Canadians looks like. It's not the best
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possible deal we can imagine, like he's trying to pitch it as the best possible deal for Canadians
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is the thing that lowers our costs or keeps costs off. It keeps, you know, tariff costs off our
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economy by making it so that our businesses don't go under because they lose a significant area of
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business for themselves. And also, we don't want to have to overtax ourselves. This is why counter
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tariffs are really stupid. So I hope we don't impose them. A tariff being put on you is already bad
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enough. Doing a counter tariff means that you are also, you're going to eliminate a lot of business
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in your own country by not allowing people to import certain things that your own businesses need in
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order to operate. This is actually why the steel tariffs in general may be a little dumb. So far,
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they're actually good because they're on China. But if we start trying to tariff American steel
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because they tariff our steel, really all we are doing is in certain parts of the country where they
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maybe rely more on American steel because it's the more cheap and more easily, it's more available.
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We're just going to be paying higher costs in that particular area in order to gird up a steel
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industry, which could be saved by us just lowering taxes. And this is always my narrative and all this
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stuff for good reason. If you want to help the Canadian economy, lower taxes. But here is something
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that Pierre Polly have said back on July 16th, but I think it is quite, you know, it's very much
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pertinent right now. He says, how can anyone believe anything Mr. Carney says? Only a month
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ago, he ran an entire campaign promising he would never back down on trade. Now he's accepting
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permanent U.S. tariffs on Canada, a complete and utter capitulation. And Carney's going to argue
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he's not capitulating. In fact, Pierre would be capitulating because he's not going to sign a bad
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deal. Again, the man ran on the idea that he was some financial wizard who was going to keep us
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from actually having tariffs imposed on us. But this is the sort of thing that Carney is
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currently posting, sort of happy talk his way through a crisis. And he's saying,
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facing a shifting trade landscape, the premiers and I are focusing on what we can control,
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working together to get major projects off the ground, break down trade barriers and build a
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stronger Canadian economy. That was just two hours ago. Except at a First Nations convention,
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he effectively admitted that he is not going to build pipelines without their full consent,
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which you don't really need their consent. It's crown land you're building the pipelines on.
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But for some reason, we are now going to stall major projects unless we can get full sign off
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from First Nation band councils that are in the general area of the projects. So that's not quite
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true. Yeah, he'll probably try and force through renewable projects because that's part of his ideology
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that just green is good and oil and gas is bad. So he'll fast track that stuff, but not
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the actual productive energy programs, the energy projects like pipelines and new oil and gas
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developments and mines. Here's something else that he posted yesterday on the day that we are
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supposed to have a trade deal. He says, welcome to US senators for a productive meeting today on trade
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and the important economic impact of our Canadian businesses in their home states. As we negotiate a new
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economic and security relationship with the US, we remain focused on securing the best deal for
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Canadians. And when you look at the senators that are involved, I can't see all of them, but you see
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that you have Catherine Cortez Mastro, who is in fact, I believe, a Democrat. You have Lisa Murkowski,
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who is the Republican senator from Alaska. And then you have Ron Wyden, another Democrat senator.
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I just find it odd that we are trying to sign a deal with current Republican administration. And
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we're mainly talking to Democrat senators, as well as very moderate Republicans. We should be trying
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to engage with Ted Cruz. We should be trying to engage with Lindsey Graham, with Josh Hawley,
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people like that who are going to be able to actually maybe push the ball forward on a deal with
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Donald Trump. But we're not doing that because maybe they were the only people who actually wanted to
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come and talk to us. But we're not doing ourselves any favors. What really doesn't do Canada any
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favors is Carney saying he's trying to get us the best deal. But then he posts this.
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Alrighty, M4ite. I don't even know what that is. Great set at the Blue Fest by Peach Pit Music.
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I understand that people have free time, and I don't begrudge Mark Carney for taking free time
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in his job. But if you're trying to get the best deal signed for Canadians, and he's not,
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he's admitting that he's not trying to get a deal signed unless it's like perfect, which means that
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we're going to end up with tariffs, which means it's the worst possible deal. Don't post going to
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music concerts at the same time. Rock concerts, maybe go to them, but don't post about it. Because
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this makes me feel like you're not actually working that hard. And previously with the premier's thing,
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okay, we're working with premiers on things we can get done in our own country to, you know,
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help the economy out. Supply management, trying to actually get sign off on a pipeline? Nah,
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he's not interested in those things. He's interested in the fluffy rhetoric. But a lot of the stuff that
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he's claiming to deliver in terms of interprovincial trade is stuff that he doesn't really even need to
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start on in two or three years. Actually, that's even the funny thing about a pipeline. He can even say
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yes to a pipeline right now, but it's going to be years away from actually getting done,
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which is why it may behoove us to actually sign a better trade deal with the Americans,
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because we don't have an ability to ramp up trade to other countries right now. You know,
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it's easier, in fact, to drive products across the southern border than it is to try and ship
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things to Asia or Europe. And then also, and when it comes to even just trade between Alberta and
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Ontario or New Brunswick and British Columbia and Northwest Territories to Saskatchewan,
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is that this is all things that are going to be beneficial in the long run to knock down work
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regular, you know, labor regulations and other sort of tax codes and other like regulations on products
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between provinces that make it very difficult to actually move your business from one province or
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another or trade your goods from one province into another. It's really hampering Canada's economy.
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But that stuff, if you get rid of it, it will still take a year or two to actually start
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seeing the effects. So everything Carney's talking about getting stuff done doesn't really get stuff
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done. At best, there's a delay. And at worst, like I suspect, he's not actually serious about doing
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things like actually trying to, you know, get major projects done unless they fall within his renewables,
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you know, battery plant, solar and wind type ideology, his agenda. But yeah, that's it for me today, guys.
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So I would say at this point, I'm not very confident we are going to get a trade deal signed even by October.
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If it comes a little later than that, it's going to do a lot of damage to Canada's economy.
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We had a really, we had really strong growth in the first and second quarter of this year.
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But that was off of the back of the Canadian economy, basically doing a lot more buying and
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purchasing before trade before tariffs come into effect. We are already seeing the economy slow and
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a 35% tariff gets implemented, you will see it grind into probably a recession. But elbows up,
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everyone, I guess keep a smile on your face because the adults are in the room, not that dirty,
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nasty Pierre Polyev who would have given us back our own money and deregulated the horror.
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But that's it for me today, guys. Again, like the video, subscribe to the channel,
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leave a comment, do all that great stuff. And I will see you guys tomorrow.