It turns out, Prime Minister Mark Carney wasn't the man with the plan like he presented himself as in the 2019 federal election. President Donald Trump has announced he is going to put a 35% tariff on Canada starting on August 1st as an obvious shot across the bow on wanting us to get rid of our supply management program.
00:02:42.020It is a great honor for me to send you this letter in that it demonstrates the strength and commitment
00:02:47.500to our trading relationship and the fact that the United States of America has agreed to continue working with Canada despite Canada having financially retaliated against the United States.
00:02:58.340Now, the thing I want to highlight about this first sentence is that he's basically saying,
00:03:18.080We even agreed to come back to the table after you tried to put a tax on our tech companies.
00:03:23.220And again, I'm not even agreeing with the tone and tenor of how Trump does stuff.
00:03:29.040I think that it's a little bit too hard and fast all at once.
00:03:32.840I think he tends to like a 35% tariffs is pretty aggressive.
00:03:35.380But I think it's more so trying to play hardball ahead of the July 21st state because the Canadians are not actually negotiating with the Americans.
00:03:49.160As you will recall, the United States imposed tariffs on Canada to deal with our national fentanyl crisis, which is caused in part by Canada's failure to stop the drugs from pouring into our country.
00:04:02.440Instead of working with the United States, Canada retaliated with its own tariffs starting August 1st, 2025.
00:04:08.220We will charge Canada a tariff of 35% on Canadian products sent into the United States separate from all sectoral tariffs.
00:04:17.420Good transship to evade this higher, higher tariff will be subject to that higher tariff.
00:04:24.080As you are aware, there will be no tariff in Canada or companies within your country decide to build or manufacture projects within the United States.
00:04:32.060And in fact, we will do everything possible to get approvals quickly, professionally and routinely.
00:04:39.380Again, that last sentence is very key.
00:04:42.260He's saying we want to do things fast.
00:04:44.260And if Canadian companies want to move over to the United States, we'll try and sign agreements to make that transition happen as fast as possible within weeks.
00:04:53.580Because he's dealing with the Canadian government that is not it's just comatose.
00:04:58.220It's just sitting there not willing to play ball.
00:05:02.060Now, the fentanyl thing is a little overemphasized.
00:05:04.980It's not as bad as Trump says it is, but it's also not a non-issue like Justin Trudeau and other liberal politicians were trying to claim back in December and January.
00:05:19.380There's a drug problem across the country in Canada, just most acutely in places like Vancouver and in Toronto.
00:05:26.440You think the drug dealers only deal in Canada like they're Canadian patriots who only want to deal drugs to Canadians?
00:05:32.680No, they'll carry drugs over the border to go sell it in Seattle, too.
00:05:36.780And so that is something we need to like clean up.
00:05:39.580It's again, it's not like we're the majority of the issue for the United States.
00:05:42.300We're not the worst actor, but it's a problem.
00:05:45.200We are already working with them on that.
00:05:46.860So it was cheap for Trump to bring up because I don't think that's something the federal government isn't willing to do this stuff for.
00:05:52.940We're already trying to increase border security.
00:05:55.180But the bigger thing here is the supply management system.
00:05:58.900And later on, it says, if for any reason you decide to raise your tariffs, then whatever the number you choose to raise them by will be added on to the 35% that we charge.
00:06:11.140Also, I must mention that the flow of fentanyl is hardly the only challenge we have with Canada, which has many tariffs and non-tariff policies and trade barriers, which causes unsustainable trade deficits against the United States.
00:06:23.520Canada charges extraordinary tariffs to our dairy farmers up to 400%.
00:06:28.200And that is even assuming our dairy farmers even have access to sell the products to the people of Canada.
00:06:34.320So the big thing, we can just end it there for the letter.
00:06:37.300The big thing that Trump wants is probably to get Wisconsin, Dakota, Michigan, you know, New England, dairy farmers, chicken farmers, the people who make cheese, the ability to trade into Canada.
00:06:57.520He wants those people to like him for the midterm elections.
00:06:59.820And you can say it's an excuse, but it's a good excuse that if we're already like we're already charging big sectors, massive tariffs of 200 to 400% on specific products, you can say, well, I'm only charging you a 35% tariff across the board.
00:07:15.360So how about you get rid of your tariff and we'll get rid of ours?
00:07:18.720That is obviously what this is all triangulating towards.
00:07:22.280But Mark Carney and his liberal government seem more committed right now to the dairy cartel, to the trade, the supply management system than actually getting a deal done.
00:07:32.860So this is what Prime Minister Mark Carney had said yesterday on Twitter, shortly after this tariff announcement was made.
00:07:41.540Mark Carney said throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses.
00:07:49.500We will continue to do so as we work towards the revised deadline of August 1st.
00:07:54.440Canada has made vital progress to stop the scourge of fentanyl in North America.
00:07:59.040We are committed to continuing to work with the United States and save lives and protect communities in both our countries.
00:11:35.480Again, Trump actually forcing us to drop the digital services tax is probably a bigger tax break for Canadians than has been delivered by any party over the last 10 years so far.
00:11:45.740Absolutely hilarious that we need a U.S. president to attack us to actually get some tax relief for Canadians.
00:11:53.280But here's another post I want to highlight.
00:11:57.180I want to go through some of the takes I've seen from people.
00:11:59.660Well, Cosman from Juno News, I think he's from the True North Wire Service wing of it.
00:12:06.400He made this very funny post where he says, Mark Carney's advisors right now, quote, we have to we have we tried releasing another photo of him signing meaningless papers at his desk.
00:12:16.000Quick, go get the pen and all the photos here of Mark Carney signing stuff to show how committed he was to creating one Canadian economy and fighting back against tariffs or whatever.
00:12:27.620You know, I think some of these are from when he was getting rid of the carbon tax that he used to support.
00:12:31.860But yeah, the problem with all the elbows up stuff is that it's a great it's a great election slogan.
00:12:38.860I suppose, but it doesn't actually work in reality to just say elbows up when we actually need to, you know, give a little to get a little when it comes to making a trade deal.
00:13:03.900Like there's a lot of people rightfully pointing out how toxic this is for our country to be just dedicatedly fighting for like the supply management system over everything.
00:13:16.380And what was the thing I wanted to highlight here?
00:13:32.780And he was pointing out after CBC Watcher was posting a video of someone who's actually a more liberal commentator on the CBC saying what you can see this quote here.
00:13:42.380Quote, when I was listening, waiting to come on, I actually held up my hand and said, I oppose supply management as well, because the he was just the guest on.
00:13:52.720Basically, the CBC guest was saying before he came on the show, when you see her in the preamble, he was like thinking, sticking up his hand saying I'm against supply management because there's all this propaganda out there about how, you know, supply management is really what makes Canada.
00:14:06.740It's like the public health care system.
00:14:08.200What would Canada be without this terrible health care system?
00:14:31.480If he did, I think he would have done something a while ago or been open about negotiating with the United States over softening the supply management system in order to get some concessions or eliminate it.
00:14:43.160But, you know, maybe have it phased out over time.
00:14:45.320We're just not doing any of that because Canada is a weird country where we have to care more about the dairy cartel than average people's standard of living.
00:14:56.000But anyways, so that should be it for this video, guys.
00:15:00.460No doubt this tariff situation is going to cause me a lot of grief over the next couple of months.
00:15:07.700It's going to be annoying seeing Canadian politicians diving in front of, diving in front of the, like, in front of bullets to try and save the supply management system.
00:15:19.300It's not even good for us to begin with, like, all protectionism.
00:15:23.400It just protects weak industries that have basically become complacent, that have become inefficient because they don't have to be efficient.
00:15:33.000They are guaranteed a supply that they are allowed to sell.
00:15:36.400They aren't even allowed to be competed with by other Canadian farmers or for that part of the system.
00:15:41.360But, yeah, next couple of months, we are going to hear a lot of dumb takes about how, why the supply management system is actually what saved your life.
00:15:50.120I mean, you would all be dead right now if it wasn't for the supply management system.