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True Patriot Love
- February 19, 2026
Carney’s EV “Mandate” Flip CUSMA - Part 2
Episode Stats
Length
43 minutes
Words per Minute
182.2801
Word Count
7,964
Sentence Count
647
Misogynist Sentences
3
Hate Speech Sentences
5
Summary
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.
Transcript
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Whisper
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).
Misogyny classification is done with
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Hate speech classification is done with
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.
00:00:00.000
Well, Thursday morning, Prime Minister Mark Carney had an announcement in Ontario speaking
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to the media, speaking to workers, speaking to the nation about the auto industry and
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electric vehicles.
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And some people like what he said, and some people don't.
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As always, thrilled to be joined by Paul Micucci from True Patriot Love Media.
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Paul, how are you?
00:00:20.940
Good, Jim.
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Yeah, interesting.
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You know, we're getting ready for the show, and we're just going to talk about Kuzma,
00:00:26.100
which is pretty simple, quite frankly, and just get up to speed before, you know, that
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July deadline.
00:00:31.680
And boom, pops on the screen.
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You know, our Prime Minister is talking about auto.
00:00:37.220
So Brian Platt from Bloomberg News had an interesting quote on social media.
00:00:41.400
Confirm, the hated EV mandate is out, replacing it with a fuel efficiency credit system.
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Huge win for automakers who lobbied hard for this flexibility under the shadow of U.S. tariffs.
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Well, it's interesting.
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And Pierre Polyev, the real Pierre Polyev, said, common sense prevails.
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Mark Carney finally admits that the conservative plan to scrap the punitive EV mandate was right
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all along.
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But Canadians won't forget this original flip-flop.
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We love lower taxes, not more targeted subsidies.
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And interesting, and one more, Jim, I wanted to go through.
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Auto expert, this is what, don't be fooled by the 75% target.
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It's still a mandate by any other name.
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If the infrastructure isn't there, these efficiency credits will just become a hidden tax on gas
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vehicles.
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Yeah, and then just a quick quote, I'll paraphrase what Doug Ford had to say.
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We're on the same page for Team Canada.
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If you want to sell cars here, you have to build them here.
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Protecting our auto workers Ontario is my number one priority.
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So Ford's conceding that, look, if whatever, out of what car it is, if you build it in Ontario,
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he's like, as long as the jobs are here and the money staying in the province and going
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to tax and everything, infrastructure, then he's fine with it.
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And in the auto industry, we looked it up.
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They started building cars in Canada in 1904.
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It's been a big part of our history.
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Oh, yeah.
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For the majority part of our history, building vehicles, cars and trucks and minivans in
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this country, especially in Ontario, which is the center of it.
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Oh, yeah.
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We will.
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And, you know, through the bad times, we've actually put about $2 billion in subsidies
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into the industry to keep it alive in Ontario.
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Yeah.
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You know, when recessions hit, we stepped in.
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We kept basically GM alive.
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Absolutely.
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You know, definitely by the loans and grants that we gave to the company to keep them here
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and keep them functional.
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I kind of feel that this announcement by Carney in the direction, Paul, is a tweaking, an adjustment
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of the auto industry in the country that maybe the kinds of vehicles, the way they're built,
00:02:52.360
the auto industry, how it functions, is evolving with the changing economy and the changing
00:02:58.220
geopolitical issues we're dealing with, especially south of the border.
00:03:01.960
Yeah.
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Oh, no, I think it is.
00:03:03.500
But, you know, it's interesting.
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So, you know, he's always and, you know, Doug Ford, you know, you're just on Doug Ford
00:03:09.460
a minute.
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Their conversations, you know, they've been back and forth.
00:03:12.880
We've doubled down on EV cars.
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Absolutely.
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We said this on previous shows, like, you know, we basically, whether it be new nuclear
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plants, maybe it'd be hydro, whether the battery plants up by Windsor and London and
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all up there, we've really doubled down on it.
00:03:29.600
So when all this was happening and the Trump tariffs and the kerfuffle with Kuzma and everything
00:03:36.100
was happening, I'm sure there was a lot of sweating going on, right?
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Because it looked like, quite frankly, with no backup and the big three automakers kind
00:03:45.080
of on the way out, it was going to mean some terrible times for Ontario.
00:03:50.240
So it's interesting.
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Let's go in for a minute.
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So we just got this.
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So I just wanted to walk through before we start the show.
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So, you know, he called it pillars.
00:03:58.900
So on the show, which I love pillars, we have nine pillars for true patriot love, true patriot
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love, you know, is, is based on pillars.
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So his nine pillars for his new auto strategy, the first one to accelerate investment in Canada's
00:04:12.680
auto sector, the Canada's government will allocate 3 billion from the strategic response fund.
00:04:19.620
So in the budget, we did the budget show.
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There's a huge budget set aside for, for just these types of issues.
00:04:26.480
And he's going to basically allocate 3 billion.
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Now, I don't know what that's for.
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He didn't really spell it out.
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I guess they're going to put a sub-
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Retooling and stuff?
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That's what I guess.
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Yeah.
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They're going to put a subcommittee together.
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I think in the Q&A, they were talking about a committee that was going to figure out how
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to allocate the monies.
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If they're going to go to EVs and retool their plants or bring new plants in, I assume they're
00:04:50.880
going to need to build those plants or they're going to need to retool those plants.
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Tax breaks and whatnot, right?
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Yeah.
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Yeah.
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Well, this is funding.
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So tax breaks are on top of it.
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There's a lot of, he did mention that inside the budget, there's a lot of basically tax
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breaks that make the effective tax rate on capital investment only about 13%.
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So he's dropped, I think he said 4% less than the US, making it worth people's money or
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companies' monies to make capital expenditures in Canada.
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So you can directly expense it.
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The tax rates dropped.
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So those are all good things.
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And that's the product super deduction, which will reduce the tax burden of those companies.
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So, and then a hundred million from the regional tariff response initiative.
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So there's a lot of capital put on the table here.
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Absolutely.
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How it gets spent and how it gets retooled, you know, and who it goes to.
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And there was questions after whether it went to China, whether it had Chinese companies
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coming in, which, you know, the, the, uh, energy initiative, there was interesting yesterday.
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I don't know if you watched the energy minister on TV at CBC yesterday, but they were asking
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him several questions about the pipelines and Chinese companies coming in and actually investing
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and building the pipelines.
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And he, and he was very elusive.
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He basically said, you know, if it, if it works with the Canada act, we're up for it,
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right?
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If, if the Canada act allows it, we're up for it.
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So, you know, if you look at this, you know, this business, the auto automotive business,
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the Chinese are the leaders by far, right?
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So, and they make them cheaper.
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They make them Chinese electric cars in Canada would cost approximately 35,000.
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Exactly.
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But they make the, the, they more than double the number of cars sold around the world from
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the U S so the U S sells roughly 13 million a year.
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The Chinese sell 31 million cars a year around the world.
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That's a big number, Paul, right?
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Oh, it's huge number.
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It's huge number because we put in perspective, Canada buys.
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So our cars sold new cars sold on an annual basis is slightly less than 2 million, 1.9
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million.
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Yeah.
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So let's say for just our today, 2 million, right?
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So, you know, it's six times bigger in the U S you know, and 15 times bigger in China and
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it's a trillion dollar business in China and it's, you know, it's cars.
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I was taking a look last night, getting ready for the show.
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The number, number one sales, uh, group in China or one of the number one sales, it was
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a group called cherry.
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So cherry cars, uh, SAIC, uh, Chen gang, GD great wall motor, BYD Tesla, China, and GAC.
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So those are kind of the top.
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So, so those are the cars that they see.
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And when they produce them, they're rolling them around the world at a low cost target.
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And right now with the, the economy and people strapped for hard currency, if you can get
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electric vehicle at a cheaper price than a Tesla or anything else, well, I mean, it's
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too, it's too appetizing to buy it.
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If you're going to sell 20, save 20, 25,000 to buy the Chinese one, eventually you're like,
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well, okay, I'll buy that one.
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Oh yeah.
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Yeah.
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We remember you and I are old enough to remember the hue and cry with Japanese cars coming to
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North America.
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Oh yeah.
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And Honda and Toyota, and they were cheaper in that.
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And eventually people started buying them a big numbers because they were more affordable,
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dependable and cheaper.
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Yeah.
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Yeah.
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Big time.
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You know, it's interesting.
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So pillar two.
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So Jim, and it comes to, to rationalize emissions reduction policies, to focus on outcomes that matter
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to Canadians.
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It's the Canadian, Canada's government, new government will introduce stronger greenhouse
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gas emission standards that put Canada on the path to achieve a goal of 75% EV sales
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by 2035.
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That's not that far away.
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No, it's not.
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And 90% EV sales by 2040.
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So what they're saying, you know, reading between the lines here is they're saying we're going
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to be given some greenhouse gas emission standards and those are going to actually influence us
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to switch over to EV cars.
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So it's, you know, that comment that I read at the beginning, that's what he's saying,
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right?
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He's basically saying it might not be a mandate, but it is a reverse mandate.
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So, you know, the old days, you remember it.
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We're not telling you, but we're telling you.
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Remember, we used to go to our mechanic and he used to hook up that hose.
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Yeah.
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And you used to think, oh, I hope I pass.
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Otherwise, I don't know, Paul.
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They used to come out and go, oh, we have to test again.
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You just go, oh my God.
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Here's some more money.
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Yeah, exactly.
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But it looks like we're kind of going to be back down that path again, where we're going
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to go for admissions testings on our vehicles.
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So three, to strengthen domestic demand by making EVs more affordable and reliable for
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Canadians, Canada's new government, I hate when he says that, will launch a five-year
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EV affordability program?
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Hmm.
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So this is the one where they're going to give rebates.
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So they're going to basically put $2.3 billion to provide rebates or incentives up to $5,000
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for battery, electric, and fuel EVs, and up to $2,500 for plug-in hybrids with a final
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transaction value of up to $50,000 on cars made by countries Canada has free trade agreements
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with.
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Okay.
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So just to go back to your one pillar.
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That's a load.
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That's a load.
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So the rebates, they hope will get us to the 75% of EV sales, right?
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They're hoping that with the rebates and all that.
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Well, no, I think it's a little different.
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I think they're thinking, with the admissions testing, they're going to force us to EVs.
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But I just want to point out, you're saying 75%.
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I just double-checked it.
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15% of cars in Canada in 2024 were EVs.
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15%.
00:11:00.880
Yeah.
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And we want to go to 75%.
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Yeah, yeah.
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It's a big jump.
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It's a huge jump.
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Huge jump.
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So, but we're going there, right?
00:11:10.300
Well, no.
00:11:11.780
So here's the thing.
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No.
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Yeah, we are going there.
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So the way this is written, again, we'd like to work with the U.S.
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So when he did the press conference, he said, we'd like to work with the U.S.
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and we'd like not to have tariffs.
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But if we have tariffs, we have to go on our own path.
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Therefore, this plan will get us to the new path.
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And the new path, and this is where I was a little confused with it, the new path really
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speaks to the fact that we'd be producing a couple million cars for sale on an annual
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basis in Canada.
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Because that's what the appetite is for new cars in Canada.
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And that would keep the auto industry thriving and surviving in the country?
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No, it really wouldn't.
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Two million a year?
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It would be okay.
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But right now, because right now we're selling another two million into the U.S.
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Like, you know, our, you know, crossing the border eight times and going back in the fourth.
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So our traffic in the auto business, the automotive business, and whether it be parts or whether
00:12:14.620
it be cars built, is roughly another two million cars that are going across border built.
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So yeah, no, I don't think this, it does something.
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I'm not sure, it definitely will not get us back to where we are today.
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My first thing is, I wish I was smart enough as an engineer or an inventor to come up with
00:12:34.660
an additive to putting your fuel tank before you get your testing.
00:12:38.520
And then you come up, oh, geez, Mr. Makutu, your EV numbers are fantastic.
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Pass, keep driving your truck.
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But pillar number three is your rebates that you get if you buy an EV car.
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Yeah, yeah.
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Yeah.
00:12:51.580
So four, this is to establish a comprehensive trade regime that strengthens the competitiveness
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of the auto sector.
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Canada's new government will.
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And then it goes on and takes you through all the things that we'll do.
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But, and it talks about Canada recently deepened its strategic partnership with the Republic
00:13:11.820
of Korea by signing a memorandum of understanding to strengthen Canada-Korea industrial collaboration
00:13:17.480
for future mobility.
00:13:19.480
This MOU builds other MOUs that Canada has signed with global automakers to promote cooperation.
00:13:26.080
Now, this is tied also to the potential deal to buy 12 state-of-the-art new submarines from
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South Korea and to Republic of Korea.
00:13:35.460
Now, it just came out yesterday that to even sweeten the deal, not only will they have special
00:13:41.260
docks and dry docks in Victoria, B.C., and CBS-Kleimalt to service the submarines, the Republic of
00:13:50.200
Korea is saying we'll build new mobile artillery units and vehicles in Canada as well.
00:13:56.660
Yeah.
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Oh, congrats.
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We did a show on this.
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Right.
00:13:59.980
We did a show on this.
00:14:01.020
And so they already have the idea of building SOB jets in Quebec.
00:14:05.780
Yeah.
00:14:06.020
And somewhere in Canada, they would build these Korean mobile artillery pieces.
00:14:11.400
They're doing it.
00:14:12.180
So this is where I see he's like, okay, we'll buy the subs, but build a factory and build
00:14:17.140
those things here.
00:14:18.280
Yeah.
00:14:18.980
Well, and he also goes on.
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Canada has agreed to a new strategic partnership with China, a global leader in EV manufacturing,
00:14:25.820
to further diversify trade and catalyze new investment in the auto sector.
00:14:31.680
So, and he's talking about the fixed volume of EVs, but quite frankly, you know, I think
00:14:37.160
where we're going, I think we all know where we're going, but eventually if the market drops
00:14:41.740
out and the big three automakers don't retool themselves to get into the EV game.
00:14:46.540
Then what?
00:14:47.360
Well, then the Chinese will expand their quotas.
00:14:49.520
You know, as much as a lot of people are upset about this and wring their hands over Chinese
00:14:54.900
investment, find me a country where China doesn't have a foothold in that, that country's
00:15:02.200
economy.
00:15:03.140
Yeah.
00:15:03.580
They're all over the world, Paul.
00:15:04.940
Oh yeah, for sure.
00:15:05.920
All over the world.
00:15:06.980
And if it, if it can benefit Canadians to build some Chinese made Chinese design electric
00:15:13.320
vehicles in the province and keeps people employed and tax review coming to the system
00:15:18.600
for social services and infrastructure, is it a bad thing?
00:15:21.780
I don't think so.
00:15:23.640
No.
00:15:24.160
Does it have to be GM or Ford always?
00:15:27.160
And if they're not going to do business with us, don't we have a moral obligation for the
00:15:32.200
people and the workers of Canada to figure out if someone will do a job here and we'll
00:15:36.540
keep these plants open somehow, some way.
00:15:38.980
I mean, if they're, if Carney's saying, as you're saying like, Hey, this is the reality of what's
00:15:44.100
going to happen in the next decade, the testing, the emissions, the EVs, we're going to have to
00:15:49.000
get them somewhere and make them affordable.
00:15:52.080
Well, and if, if the tariffs are prohibited from the U S and you know, the U S the big three
00:15:57.700
automakers are going to pack up and leave, which kind of ties into pillar five, right?
00:16:03.120
To protect Canadian auto workers and business for immediate pressure while helping them bridge,
00:16:07.940
helping them bridge them to the future.
00:16:10.220
Canada's new government will, and basically provide a grant sharing, prevent supports and
00:16:18.240
established workforce alliances.
00:16:19.940
So provide employment assistance and reskilling supports to 66,000 workers across Canada, including
00:16:28.780
displaced workers with a $570 million investment.
00:16:33.940
Well, they're going to need to, if some of the, I mean, we're already seeing some of the
00:16:36.980
car plants or cutting shifts.
00:16:38.780
Well, so the interesting thing, so just think about it, how many people are in the auto?
00:16:41.800
So I think if I remember correctly, there's 130,000 people in the auto industry in Canada.
00:16:48.120
That sounds about right.
00:16:48.880
Yeah.
00:16:49.120
Yeah.
00:16:49.360
That might be off by some.
00:16:50.760
And if I am, let me know.
00:16:51.800
But, uh, so now you're talking about 66,000 workers possibly being displaced.
00:16:57.680
So, but I, you know, if I, you know, it's, it's a fairly mature industry.
00:17:01.960
So I, I assume by the time they retire and do everything else, you know, and the rest of
00:17:07.440
them are going to be on the line, uh, looking for work.
00:17:10.680
Yeah.
00:17:11.160
And quite frankly, they're going to have to find something to do with them.
00:17:14.560
Right.
00:17:15.480
Whether it's building the Republic of Korea design, artillery pieces or Chinese electric
00:17:20.940
vehicles or electric buses and trucks, it will be something.
00:17:24.960
Well, and hopefully, and hopefully we make it a requirement, you know, whether it's Chinese,
00:17:28.960
Korea, wherever these new cars are coming from, to your point is to set down in Canada and
00:17:33.300
use our steel and aluminum and those things.
00:17:35.440
Cause we have to, right?
00:17:36.440
Yeah, yeah, we have to.
00:17:37.760
So, so, you know, it's interesting, Jim, I, you know, went through and, you know, I was
00:17:42.480
getting ready for the show and I spent a lot of time on Kuzma.
00:17:45.360
So, and, you know, uh, with, with vehicles, vehicles have been a funny thing for North America
00:17:53.180
as far as how countries have coveted.
00:17:56.600
And I remember this back to when I was first starting in business, you know, you could show
00:18:01.640
up and you could be pitching, you know, a product or something going on.
00:18:06.140
You got off a plane and said, you were going to build an auto plant.
00:18:09.400
You were given tax breaks.
00:18:10.920
You were given employment incentives.
00:18:12.580
You were given like, people just went bananas.
00:18:15.080
If you said, and you know, and I remember that made a town, I remember the Magna guys,
00:18:19.300
you know, wherever they went, they were coveted to go there.
00:18:21.640
Right.
00:18:21.880
They were basically, you know, oh my goodness, they're here.
00:18:24.900
Let's roll out the red carpet.
00:18:26.760
And it was very interesting, right?
00:18:28.440
Because a lot of times there was a net negative to the community from a tax perspective or from
00:18:35.320
a revenue perspective.
00:18:36.320
It created jobs, but quite frankly, uh, you know, they had to fund it.
00:18:41.500
They had to fund the infrastructure and they did quite frankly.
00:18:44.380
So, you know, when Kuzma came up, it was the same type of, you know, tug and pull that happened
00:18:50.740
amongst the politicians of the time, as we talked about, you know, whether it's, uh, Trump and,
00:18:55.940
and, uh, Trudeau and, and all those people, they still were battling over components and,
00:19:01.560
and basically, and with a real specific attitude that they want to make sure that foreign, uh,
00:19:09.760
entities could not surface in the automotive market in North America.
00:19:13.740
So it's interesting how things have shifted.
00:19:15.940
And I, you know, I was going to get more into it today, but then I looked at this and I thought,
00:19:19.900
wow, what a paradigm shift.
00:19:22.720
Absolutely.
00:19:23.380
It is like this whole agreement.
00:19:24.840
When you read all the, you know, labor value content and, and, uh, uh, uh, how they determined
00:19:33.040
components and the percentage of, uh, qualifying original destination of parts that go into vehicles
00:19:40.920
and content and all the formulas that went into determining Kuzma for vehicles to make sure
00:19:46.800
that those parts were made in North America, made sure the labor rates that were used and
00:19:51.440
the labor quality of the people that worked on them was, uh, fair and equal that then it
00:19:57.820
was months and months of hard negotiation went into figuring that out.
00:20:02.360
And now we've broken, it appears we're going to break that, you know, that's what's signaling
00:20:08.340
is that that's not going to happen.
00:20:10.000
And we're going to end up in Canada going in the opposite direction.
00:20:14.760
Well, and I do find something interesting.
00:20:17.420
So every modern car now, when you go to mechanic, they plug a computer because that's how they
00:20:23.400
diagnose the car.
00:20:24.700
Yeah.
00:20:25.000
That's the diagnostics in that computer are microchips that are made in Taiwan.
00:20:29.580
Yeah.
00:20:30.100
So it's not possible to have a vehicle now basically around the world that is a hundred
00:20:36.000
percent, all domestic parts.
00:20:37.680
There will be some part of it that comes from some other country.
00:20:40.980
That's the way it is right now.
00:20:42.420
Yeah.
00:20:43.320
Oh yeah, it is.
00:20:44.340
And it goes back and forth, but you know, and there's, there's, you know, I brought up
00:20:48.400
Magnum, there's a few other ones, quite frankly, but aftermarket parts became a huge market in
00:20:53.740
Canada that has, I think 700 parts suppliers in Canada right now.
00:20:58.840
And, uh, you know, I was wrong early on.
00:21:00.660
I just came to a stat here that basically 12% of cars manufactured in Canada are sold in
00:21:06.600
Canada.
00:21:07.220
Yeah.
00:21:07.920
So it's a huge number that goes outside of Canada.
00:21:10.160
It's bigger than I thought, quite frankly.
00:21:12.420
And, and that's where we've come to.
00:21:14.240
So now, you know, how do we, how do we function with that going away?
00:21:20.000
That's where he's at.
00:21:20.940
So, you know, and that was today, that was where he said, now I didn't think the EV, I'll
00:21:25.320
be truthful with it.
00:21:26.060
I was, I was thinking, uh, when all the press releases were coming out last night, I thought
00:21:31.660
he would, uh, eliminate the quote, the quotas, you know, the mandate to go to electric cars
00:21:37.180
and he wouldn't bring it in, but he did.
00:21:39.540
He did it in a reverse methodology.
00:21:42.040
And I guess the reason Doug Ford was so happy with those conversation is he's still going
00:21:48.080
down the EV.
00:21:49.480
Yeah.
00:21:49.900
Yeah.
00:21:50.220
The EV way.
00:21:50.980
So find me a country that isn't thinking, well, Western countries, the middle power,
00:21:58.860
central Europe and all that.
00:22:00.640
They're going to electric, this electric, that, I mean, I've traveled on the high-speed
00:22:04.180
electric train in France.
00:22:05.520
It was fabulous.
00:22:06.560
So for a lot of countries around the world, electric trains, trucks, cars, and vehicles
00:22:11.420
are just a way of life.
00:22:13.440
And it's, it's, it's great that he's doing all this, but part of his Mark Carney and all
00:22:20.500
levels of government is building a hydroelectric infrastructure to the point in this country
00:22:25.660
where you can be in a small and medium-sized town far away from a big city and be able to
00:22:31.100
plug your vehicle in.
00:22:32.440
And until that happens, that's the big challenge, Paul.
00:22:35.240
Yeah, no, it is a big challenge.
00:22:37.160
Now he's got to, again, it's transitioning into that challenge and then figuring out what
00:22:41.980
to do with those people who are currently here.
00:22:44.580
Yeah.
00:22:45.080
And there's, I was right.
00:22:46.320
There's 130,000 people directly in the auto industry.
00:22:50.140
Indirectly, there's 473,000 people in motor, motor vehicle sales and services.
00:22:57.520
Yeah.
00:22:57.940
So that's 2024 stats.
00:22:59.600
So it, it is bigger than I thought, you know, and, and that's going to be the
00:23:05.080
challenge is getting them through it.
00:23:06.680
Now it's interesting, you know, you look at, so let's, let's talk about it for a minute.
00:23:10.900
And this is something that I know, uh, Ian Lee, he's a professor at, uh, Sprott school
00:23:17.620
of business.
00:23:18.320
He's talked about, I know Dan McTaggs talked about it, right?
00:23:22.000
The, the auto industry gets this, as I mentioned, a lot of this focus, but there are people that
00:23:27.260
believe that the contribution to GDP outside of all the subsidies and everything we give to
00:23:31.620
it isn't as big as we think.
00:23:34.120
Well, and it's funny to say that because if you talk to Doug Ford, that's the holy trinity
00:23:38.620
of the economy in the country is the auto industry.
00:23:41.280
How dare you even mention that?
00:23:43.020
Yes.
00:23:43.560
So the separating fact from fiction is not easy.
00:23:46.300
No.
00:23:46.880
Both with the political spin in the media or the reporting.
00:23:50.200
Yeah.
00:23:50.560
Because it's a lot of, it's like, if we lose the auto industry, we lose our economy.
00:23:54.400
Yeah.
00:23:54.800
But as you're saying, that's not necessarily true.
00:23:56.980
A lot of times when they report the stats for the auto industry, they put kind of oil
00:24:01.260
and gas in there.
00:24:02.240
So when you kind of take everything out and you take a look at it, it tends not to be as
00:24:07.020
big as we think.
00:24:08.140
So, and I'm not downplaying it.
00:24:09.700
It's a lot of jobs and it really is jobs and politics and unions.
00:24:12.980
And what hurt the towns that they lose.
00:24:14.440
And the towns.
00:24:15.260
So it's very, it's very targeted and specific to areas that, that basically their ecosystem
00:24:20.200
is based on those auto plants, which very, you know, how do we see, you remember a lot
00:24:24.740
of American cities, you know, in the old days when their mining dried up or when the
00:24:29.200
manufacturing dried up.
00:24:30.100
The Rust Belt.
00:24:30.840
The Rust Belt.
00:24:31.420
Yeah.
00:24:31.560
Yes, exactly.
00:24:32.520
Right.
00:24:33.040
Pennsylvania and Cleveland, Ohio, Erie, Buffalo, all those places.
00:24:37.140
Yeah.
00:24:37.380
They remember when it all dried up and the, it just, that's it.
00:24:41.680
Right.
00:24:41.900
It was over.
00:24:43.060
And for a lot of them, nothing came back.
00:24:45.100
Well, and that's part of the Trump scenario, right?
00:24:47.560
He wants to bring them back.
00:24:49.100
He wants to open them back up.
00:24:51.160
And again, I've always struggled with where he was going to find the people and the resources
00:24:55.740
to do that.
00:24:56.420
But, you know, that's to be seen, I guess, as we go forward.
00:24:59.900
So auto, I guess now we wait, now we're waiting now again, as we talked about on the other
00:25:05.080
show, we wait till July.
00:25:08.380
And in the interim, I guess we've put our cards on the table.
00:25:12.460
So this is an interesting, a very interesting negotiating strategy, right?
00:25:16.340
We've put our cards on the table and we've said, here's where we're going to go.
00:25:21.640
You tell us what you want to do next.
00:25:23.280
So it's, again, you know, whether it be a Davos or whatever we're doing, our, our prime
00:25:28.700
minister has taken the stance that he's going to lead in this conversation.
00:25:35.180
Which goes back to the previous show.
00:25:36.960
You'd mentioned that, Hey, we've done deals.
00:25:39.360
We're ready to go.
00:25:40.640
We're not waiting for July 1st.
00:25:43.120
Yeah.
00:25:43.400
We're just simply not going to wait around.
00:25:45.000
There's too much at stake here.
00:25:46.380
Yeah.
00:25:46.720
We have a plan.
00:25:47.700
And, you know, if you, if you say you're not interested on July 1st, here we go.
00:25:51.780
Yeah.
00:25:51.980
All right.
00:25:52.440
Now let's go to another industry for a minute.
00:25:54.880
So I'm going to kind of move away from auto, from a steel and aluminum.
00:25:58.140
Yeah.
00:25:58.680
So now we're in the steel and aluminum.
00:26:00.220
So primarily Ontario and Quebec, you know, Hamilton, Saginaw in Quebec, that's where we,
00:26:07.720
you know, see our smelters in our, our mills.
00:26:10.540
And so the issue now is becoming, you know, we've, we've been living with tariffs.
00:26:17.600
You know, this started in our previous show, I think in 2018 when Trump or 2017, when Trump
00:26:23.380
got in right away, tariff, steel and aluminum tariff.
00:26:26.720
Right.
00:26:27.080
Uh, and then, you know, we reciprocated with tariffs.
00:26:31.620
And so we've been doing these reciprocating tariffs on steel and aluminum for, you know,
00:26:36.820
a decade and it continues, you know, uh, I forget which address it was recently, but he
00:26:44.620
actually came out and he said, we have more steel plants opening up in America now than
00:26:50.960
you can believe.
00:26:52.340
Oh, Davos.
00:26:53.740
It was Davos in his Davos speech.
00:26:55.380
He actually said that he said, I don't need any of you now.
00:26:58.640
He says, I have more steel plants opening up.
00:27:00.960
So now, you know, uh, unfortunately Canada has been fairly reliant, very reliant on the
00:27:09.060
U S you know, we talked about it earlier.
00:27:11.120
Most of our steel, uh, is exported to the U S there's only a small amount.
00:27:18.140
It's a very tiny amount goes internationally.
00:27:20.460
Our aluminum, we're in a little more robust, uh, situation because, uh, we have the ability
00:27:26.400
to use our aluminum for, uh, power generation and other things that are more valuable and
00:27:32.560
we can keep producing it.
00:27:33.740
And given, you know, uh, Quebec and bauxite and everything we have, we have the ability
00:27:40.180
to produce very good aluminum.
00:27:42.080
So we do have some advantages there, but I think in our steel world, we're going to struggle
00:27:47.200
a little, and I think our market is probably going to contract substantially, but that's
00:27:52.000
ties into some of the deals that Mark Carney is making.
00:27:54.920
If he makes this submarine deal with South Korea, right?
00:27:57.880
Part of his, he's going to use Canadian steel to ship to Korea to make those submarines.
00:28:03.720
So that's creating a market there using steel for all sorts of different major projects.
00:28:10.580
They're building a whole series of state of the art guided missile destroyers in Halifax
00:28:15.080
at Irving shipyard, shipping Canadian steel down to the dockyards and the dry docks on Halifax
00:28:20.700
to cut the steel, to build those ships.
00:28:22.920
So by doing a lot of these, especially with the armed forces, the huge spending spree and
00:28:28.120
some of these other major infrastructure projects he's talking about, he's trying to think doing
00:28:32.400
it with an eye to Canadian steel and aluminum.
00:28:34.580
So at least there's some business happening there.
00:28:37.720
Algoma in Sault Ste.
00:28:39.500
Marie and the big steel plants in Hamilton.
00:28:41.840
Yeah.
00:28:42.400
Well, and you know, it's interesting.
00:28:43.940
So I think it was, we shipped $6.3 billion worth of steel in 2024 to the US.
00:28:50.180
The US shipped 3 billion back to us.
00:28:52.640
And there's different types.
00:28:53.960
You know, we did a show as a really great guy.
00:28:57.200
It was when we started and he owned a steel mart or he ran a steel mart.
00:29:01.900
And quite frankly, it was a really good show.
00:29:04.220
And he educated us on the types of different steels.
00:29:07.220
They're not all equal.
00:29:08.420
Round steel, flat steels, aluminum.
00:29:10.580
So he took us through it all and which ones come from where and why Chinese steel tends
00:29:15.140
to have some challenges with imperfections and quality.
00:29:18.080
So he took us through why and how.
00:29:20.100
And it was very good.
00:29:21.160
And his analysis was we weren't going to have a problem.
00:29:24.480
And I hope he's right.
00:29:25.860
But he basically said that we would, over time, we would gravitate if the US went away
00:29:32.780
to make the steels they were providing.
00:29:34.780
So we would lose the $6.3 billion that we shipped to the US.
00:29:40.420
We would do our own internal trade, which is roughly $3 billion inside of Canada.
00:29:45.140
And we would replace what the US was shipping.
00:29:47.540
So our net-net $6 billion would be the same.
00:29:50.640
I hope he's right.
00:29:51.640
Yeah.
00:29:52.120
And it was a very interesting conversation.
00:29:54.680
That gentleman definitely sounded like he knew what he was talking about.
00:29:57.440
Yeah.
00:29:57.660
He was very knowledgeable on the subject, Paul.
00:29:59.140
He was very good.
00:29:59.880
And so he thought that the net-net of over time would balance out.
00:30:04.400
Yeah.
00:30:04.600
So fingers crossed, I'm hoping that would happen.
00:30:06.620
But I think we all know at this point, the steel and aluminum business to the US is eventually
00:30:13.240
going to disappear.
00:30:15.200
But that is why Carney is working so hard, traveling around the world, trying to cut different deals
00:30:21.980
to different countries, maybe markets we've never thought about before.
00:30:25.500
Because every year, if you're selling that much aluminum and steel to America, why would
00:30:29.600
you break your back to cut deals with other countries?
00:30:31.860
You don't need to.
00:30:32.820
It's right there.
00:30:33.940
But now they have an incentive to sell huge amounts of steel and aluminum to countries
00:30:39.620
around the world that are not America.
00:30:42.140
Yeah.
00:30:42.280
And that's, I mean, that's really one of the reasons Carney got elected, because everyone
00:30:45.940
thinks he's the one that can cut those deals.
00:30:48.340
Yeah.
00:30:48.820
Well, and it's time now, right?
00:30:50.240
So I think the pressure is on to actually, because as we get closer to July and that
00:30:55.140
conversation takes place, I think we're there.
00:30:57.620
So, you know, Quebec, nine aluminum smelters.
00:31:01.100
I didn't know there were nine.
00:31:03.540
Kitimat actually has a smelter for aluminum smelters, right?
00:31:08.420
And of course, you know, Ontario, as we know, we have Algoma and, you know, all the stuff
00:31:13.540
going on.
00:31:13.780
Those are huge plants.
00:31:14.720
They're huge plants and a huge number of people.
00:31:18.080
So that's why I believe in the next, the next four to six weeks, Paul, sometime late
00:31:23.180
February, early mid-March, Carney will make the announcement about the submarines and
00:31:27.600
that deal would include Canadian steel and aluminum.
00:31:30.540
Well, the military, you know, you were before the show.
00:31:32.440
It's interesting.
00:31:33.040
You and I were sitting there, you know, you were on your phone, you were talking to me
00:31:36.120
about defense and you were saying, you know, we got to get to 3% and that's about
00:31:42.720
35 billion extra, extra dollars we got to spend.
00:31:46.200
So now's the time if we're going to dump, you know, dump, I don't mean dump, but if
00:31:51.560
we're going to move to do that, it's the time to do that because that'll create, that'll
00:31:55.740
backfill what's being that 3 billion that needs to be transitioned can be rejigged to
00:32:03.340
use the aluminum and steel from our existing plants and smelters.
00:32:07.420
And that'll last a few years because unfortunately the timeline to build some of these things
00:32:11.360
are pretty complex and complicated.
00:32:13.280
So it's not like this short term thing.
00:32:15.160
This is four or five, 10 years of work to build everything they're trying to plan to buy and
00:32:21.120
create.
00:32:21.780
Right.
00:32:22.360
And that, that helps.
00:32:23.720
And he's put, you know, as far as programs, you know, they've basically, uh, uh, they've
00:32:29.840
allocated about $2 billion.
00:32:31.460
I was looking at it before the show, about $2 billion in assistance to help that happen.
00:32:36.400
So the funds he's, you know, the budget, as we went through, had a lot of questions and
00:32:42.380
a huge deficit.
00:32:43.840
But the one thing I think that I commend them for doing is they put a big enough, uh, let's
00:32:49.040
call it not a slush fund, but it's a big enough fund contingency fund that's available
00:32:54.040
so they can, uh, use it for things like this.
00:32:57.000
So now's the time to transition those, those plants and smelters and all those things over
00:33:01.820
to actually get ready for what's coming.
00:33:03.440
And I'll give Carney enough benefit of the doubt that when he's doing these announcements
00:33:09.640
and pronouncements, you may quibble with some of his language and what he's saying and what
00:33:14.060
it means in the longterm, but he's not thinking that day.
00:33:17.780
He's thinking six months, two years, 10 years from now, how it'll benefit these plants and
00:33:24.600
these manufacturers and these industries in Canada.
00:33:27.300
He's trying to play the long game where Trump is just every day waking up when he goes to
00:33:31.360
the bathroom, sits in the toilet and tweets something crazy.
00:33:34.740
He's not, Carney is.
00:33:37.380
A little bit of, you know, and again, having, having lived in both places, it's a little bit
00:33:42.040
of different characters, right?
00:33:43.500
So, you know, the American go, go, rah, rah scenario.
00:33:47.740
You know, he's like, I want to build, uh, uh, you know, I want to go and build, uh, steel
00:33:52.920
mills, they go and build steel mills, right?
00:33:55.440
It's just like overnight they're in play and there's, you know, and I, I don't disagree
00:33:59.540
with him.
00:33:59.740
He's probably, he probably does have a hundred mills coming up.
00:34:03.520
Maybe, maybe I know he wants to build battleships with no one's built a battleship in any Navy
00:34:08.800
since the 1940s.
00:34:10.140
And he's declared he wants to build them now.
00:34:11.940
That's the problem.
00:34:12.540
They're going to need a lot of steel if they're doing that.
00:34:14.580
The problem is people.
00:34:16.000
Yeah.
00:34:16.940
Right.
00:34:17.320
The problem is people in training.
00:34:19.460
That's where he's, that's where I think he falls short.
00:34:21.300
I don't think he fully gets it how, and, you know, having worked there and having spent
00:34:26.260
time there, quite frankly, you know, as you do all these things to remove people and you're,
00:34:31.500
you're, you know, going through and looking at your immigration policies, you know, you
00:34:36.880
do need to have a healthy population that's willing to go back into that plant and stand
00:34:42.380
on that line and do that work.
00:34:43.960
And that's something that I just didn't see when I was in America.
00:34:47.380
I'll be truth with you.
00:34:48.160
When I left America, uh, there was none of that happening.
00:34:51.320
So if you're, if you're going to the bowels of a ship and welding and upside down, yeah.
00:34:57.780
Right.
00:34:58.360
I mean, that talk about specialized skills and some of the jobs in, in the skillset it takes
00:35:04.220
to do things.
00:35:05.280
Uh, if you watch the show land, man, uh, you know, uh, Taylor shared, and they do a great
00:35:10.920
depiction of what it is to be in an oil rig and drill.
00:35:14.160
How bloody dangerous it is and how hard it is.
00:35:17.160
Oh, they get killed.
00:35:18.040
They get, they get limbs cut off.
00:35:19.980
Oh yeah.
00:35:20.660
All the time.
00:35:21.520
And so maybe an 18 year old graduating high school and a middle class in Oxnard, California
00:35:28.420
doesn't want to go work in an oil rig offshore and maybe get his arm ripped off.
00:35:33.000
Right.
00:35:33.160
Well, that is, if you avoid a drug problem, gambling problem, you know, you don't get
00:35:38.180
killed or murdered in one of the camps and you get to actually survive working every day
00:35:43.140
to get out and get done.
00:35:44.360
They get some money.
00:35:45.080
Well, they say, you know, you gotta, it's basically, you got a 10 year, you got a decade
00:35:48.700
lifeline on it.
00:35:49.480
So if you're going to go do that for a decade, you're running.
00:35:52.640
And if you make it, if you make it, which in the show they talk about, right.
00:35:56.560
It's time for me to retire.
00:35:58.000
Right.
00:35:58.420
Yeah.
00:35:58.780
Before it gets me.
00:36:00.180
And it does get you.
00:36:01.500
It does get them.
00:36:02.280
Right.
00:36:02.560
So that's why there's only so long you can do it.
00:36:05.420
You know, because the reason I'm bringing it up is Trump is talking about, as you say,
00:36:09.160
we're going to do this and this and get these.
00:36:11.200
Well, you, okay.
00:36:12.000
There's all these young people graduating high school, college, university that he thinks
00:36:17.320
are going to take all these jobs, but the stats and demographics have shown Paul that
00:36:22.940
they'd rather do these jobs.
00:36:24.540
Oh, I don't want to do that job.
00:36:26.120
So then what do you have to, well, you're going to have to bring people in from out
00:36:29.480
of country who are willing and able to do those jobs.
00:36:32.140
You have no choice because that's not for everybody.
00:36:36.280
But, but then they'll become wealthy.
00:36:39.000
Absolutely.
00:36:39.400
They will.
00:36:40.320
Imagine what a welder makes in some of those shipyards.
00:36:43.220
Exactly.
00:36:43.500
How dangerous it is.
00:36:44.920
Yeah.
00:36:45.480
Well, that's the, the, the higher, you know, the higher education, uh, conundrum right now.
00:36:49.940
Right.
00:36:50.220
Do I, do I go get a trade or do I go get a higher, you know, higher education, quite frankly,
00:36:54.840
in America right now, you'd probably be going the other way.
00:36:58.200
To get a trade.
00:36:58.980
Yeah.
00:36:59.160
You'd be crazy.
00:36:59.900
Yeah.
00:37:00.160
You'd be crazy.
00:37:00.740
If your kids are coming out, would you want to take the loans and the challenge and hope
00:37:04.600
that they can, you know, make it through the competition?
00:37:08.120
I'm living it right now.
00:37:09.400
Yeah, exactly.
00:37:11.500
So the last one I had for today, right.
00:37:13.580
And I want to go through is energy.
00:37:14.940
Yeah.
00:37:15.080
And I left it for last because it really isn't last for Canada.
00:37:19.300
It should be first.
00:37:20.820
Oh, I agree.
00:37:22.060
And I just wanted to, I wanted to hit on it because it is our biggest leverage.
00:37:26.560
Absolutely it is.
00:37:27.280
It is.
00:37:27.540
And we don't talk about it and I'm sure they're talking about it.
00:37:30.620
I'm sure behind the scenes in, in, you know, the liberal caucus and around the table,
00:37:36.000
they're talking about all the time, but you know, from a natural gas perspective, I was
00:37:40.300
taking a look this morning in 2024, Canada exported 8.8 billion cubic feet per day of
00:37:47.840
natural gas to the United States.
00:37:49.900
This marked an increase of 8.1% from previous year.
00:37:53.840
Canada supplies approximately 99% of its natural gas imported into the U.S. and accounts for
00:37:59.920
9% of the U.S.'s natural gas demand.
00:38:02.800
That's a big, big number.
00:38:04.400
Yeah.
00:38:04.600
We're a big player.
00:38:05.340
Like we're a big player in that.
00:38:06.820
And we haven't even tapped that.
00:38:09.200
No.
00:38:09.720
And we're just starting to do the liquid natural gas and ship it to the Asian markets.
00:38:14.940
Exactly.
00:38:15.600
Right.
00:38:16.340
And we export into the Midwest, West and East, you know, primarily into the Midwest and
00:38:22.100
West of the United States.
00:38:23.600
You're talking Chicago, St. Louis, Denver, all those kinds of cities rely on our natural
00:38:28.180
gas.
00:38:28.680
Yeah.
00:38:28.900
Midwest into Oklahoma.
00:38:30.300
Yeah.
00:38:30.540
Yeah.
00:38:30.780
So, yeah.
00:38:31.740
So that's where we were sending our natural gas.
00:38:33.920
And we're a huge player in that.
00:38:35.520
And quite frankly, that's not an overnight disappearance.
00:38:38.980
So at the end of the day, if we said we need a tariff on that, over time, they might replace
00:38:47.380
it.
00:38:47.580
Over time, they'd find.
00:38:48.440
But I still think this is why it's such an urgent need to expand pipelines to Churchill,
00:38:57.140
to the BC coast and create other markets and sell natural liquefied natural gas and
00:39:03.600
heavy oil to all these Asian and European countries.
00:39:06.420
So if anything happens with America, they still have markets and still have the way to get
00:39:11.220
it there.
00:39:12.100
Right.
00:39:12.280
Well, and that was the conversation yesterday with the energy minister.
00:39:15.260
Yeah.
00:39:15.860
You know, when he was questioned about whether the Chinese investors were going to actually
00:39:19.900
build the pipeline.
00:39:20.700
So now pipelines, oil and gas or crude oil exports, right?
00:39:25.580
4 million barrels to the U.S. each day.
00:39:30.500
That's a lot.
00:39:31.760
That is a lot.
00:39:32.280
Yeah.
00:39:32.440
It's about 130 billion a year.
00:39:34.760
Right.
00:39:35.380
Is what's moving back and forth.
00:39:37.260
Right.
00:39:38.460
So, and we make up 60% of imported oil to the U.S.
00:39:45.480
I mean, it's a huge amount, it's a huge amount, right?
00:39:49.560
And think about how cost effective it is.
00:39:51.740
You're just laying a pipeline from one field on Canadian side to another field to the American
00:39:56.900
side.
00:39:57.440
You're not crossing oceans.
00:39:59.160
You're not worried about super tankers.
00:40:01.180
I know.
00:40:01.540
It's the easiest transaction of oil and gas on the planet is from one country to the other.
00:40:06.780
And we've, unfortunately, we've picked a fight in Canada amongst ourself over it, which
00:40:11.720
it seems, again, I get why, you know, we do the Dan shows and we do a bunch of shows on
00:40:17.100
this all the time.
00:40:18.580
It just, it's, it's, it's almost like, it's almost like EVs at some point, whether I like
00:40:24.820
it or not, I might not love EVs.
00:40:27.640
I don't.
00:40:28.640
But we're probably going to be driving them someday.
00:40:30.180
But it looks like we're going in that direction.
00:40:32.260
Yeah.
00:40:32.540
But we picked the lane.
00:40:33.920
Yeah.
00:40:34.660
So good.
00:40:35.240
We picked the lane now, you know, let's wrap it up.
00:40:37.660
We are, you know, quite frankly, we picked that lane a long time ago in Ontario.
00:40:41.260
When we basically, you know, put so much money into those plants, as we talked about.
00:40:47.480
So we've already, we picked that lane two years ago, quite frankly.
00:40:51.500
And there's no getting out of the lane.
00:40:52.640
No, no, there's not.
00:40:53.400
We got to go forward.
00:40:54.480
And so quite frankly, transitioning over with the oil and gas, you know, that's our, that's
00:41:00.520
our trump card or ace card, right?
00:41:03.600
Yeah.
00:41:04.060
Our ace card.
00:41:04.740
So that's our card.
00:41:05.720
We got to play it.
00:41:06.440
Yeah.
00:41:06.740
And quite frankly, in those negotiations.
00:41:08.360
So if he comes to the table and says, fine, okay, well then let's talk about oil and gas
00:41:13.520
and natural gas.
00:41:15.160
Because especially the kind of winter we're going through now, do you see they're having
00:41:19.840
record cold temperatures in Georgia, Northern Florida?
00:41:23.520
Two feet of snow in Georgia the other day.
00:41:25.580
Can you believe that?
00:41:26.620
Yeah.
00:41:26.700
So if they don't have natural gas for heating, they would freeze to death.
00:41:30.660
Exactly.
00:41:31.500
So, and they're not going to replace that in the next decade.
00:41:35.900
No.
00:41:36.320
He's not going to be there.
00:41:37.420
So quite frankly, that's the discussion that has to take place.
00:41:40.980
And, you know, all these other things right now.
00:41:44.780
So at the end of the day, you know, when we go through, these are just three of the items
00:41:50.440
in Kuzma.
00:41:51.860
They've shifted even today as we came to go to the show, right?
00:41:56.300
It changes hourly.
00:41:59.620
So, you know what?
00:42:01.200
When we originally did the first show on Kuzma, I was a little skeptical when the prime minister
00:42:06.860
said he was done with discussions on Kuzma till July.
00:42:10.760
Yeah.
00:42:11.220
You know what?
00:42:12.080
I'm actually understanding what he's doing now.
00:42:14.100
Yeah.
00:42:14.720
He's cutting deals for other industries and other sectors of our economy, bit by bit,
00:42:20.900
country by country, here, there, and everywhere, and letting the other guy, Trump, stew.
00:42:27.660
And now he knows Trump is showing all his cards.
00:42:31.900
Well, it's pretty easy to win at poker if your other guy keeps dropping his cards in front
00:42:35.420
of you and you haven't.
00:42:37.060
Exactly.
00:42:37.620
So he's just moving forward.
00:42:38.900
And then when July comes, whatever he wants to talk about, you'll just be there or not.
00:42:43.700
Okay.
00:42:44.700
Yeah.
00:42:45.320
And be nice, calm, professional, business-like manner.
00:42:48.840
This is what we're doing now.
00:42:50.080
Okay.
00:42:50.820
Yep.
00:42:51.300
And then, you know, and then I think that's going to rattle Trump if that happens to that
00:42:56.480
point.
00:42:56.820
Because he's going to expect Carney in Canada to be groveling and begging, oh, please don't
00:43:02.140
go.
00:43:02.780
And if they're not playing his game, and then it makes Trump look weak.
00:43:06.700
Yeah.
00:43:07.220
And effective.
00:43:08.380
Yeah.
00:43:08.660
And not needed.
00:43:09.980
No, no.
00:43:10.280
I think, listen, I was wondering what he was doing the last show.
00:43:14.040
I think I said that to you.
00:43:14.900
I'm not sure what's going on here.
00:43:16.280
Why?
00:43:16.960
He's always playing ahead of him.
00:43:18.680
Yeah.
00:43:19.480
I get what he's doing.
00:43:20.840
Yeah, absolutely.
00:43:21.960
Yeah.
00:43:22.160
And look, if at the end of the day, if Canadians can buy a reliable vehicle at a reasonable
00:43:27.520
price, it's not too expensive when we have to do go to the gas station or heat her home.
00:43:33.200
Canadians are happy.
00:43:34.440
Yeah.
00:43:34.840
Yeah.
00:43:35.120
Okay.
00:43:35.520
Sure.
00:43:35.900
Fine.
00:43:36.440
Yeah.
00:43:36.720
Just don't mess with us.
00:43:39.880
Thank you, Jim.
00:43:40.640
I appreciate it.
00:43:41.260
Thanks, Paul.
00:43:41.420
Thanks, Paul.
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