February 4, 2025 • 30 mins
Can long-standing friendships withstand the storm of economic disputes? The U.S. and Canada are at odds as tariffs spark a trade showdown that threatens to unravel decades of cooperation. Our latest episode features an insightful conversation with a Canadian Deputy Prime Minister, who provides a passionate defense of Canada's stance. We unpack the economic consequences for both sides, from the swelling costs of gas and groceries to the potential job losses linked to retaliatory tariffs. As the Trump administration justifies these measures with claims about border security, we dissect these assertions, arming you with statistics that question their validity.
Our discussion underscores the strain these tariffs place on deeply integrated industries like the auto and agricultural sectors. Listeners will hear about the shockwaves rippling through Canadian society, including cultural manifestations of anger, such as the booing of the U.S. national anthem at sports events. The situation is a vivid reminder of the importance of recognizing allies in trade and the risks posed by policies that could fracture economic stability. While Canadians feel a profound sense of betrayal, they remain committed to preserving a peaceful partnership. Tune in to explore the potential ripple effects on international relations and the broader implications for the global economy.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
For the land of the free and the home of the brave.
Speaker 2 (00:20):
Oh, Kennedy, I hope my native land.
Speaker 1 (00:30):
Ten-year-old Kyra Daniels.
Speaker 3 (01:11):
This really is utter madness and you know, from our
perspective, the key thing hereis you guys are engaged in this
colossal act of self-harm.
These tariffs are going to makelife more expensive for
Americans.
You have put a tariff on thegas we sell you, so gas is going
to be more expensive.
You have put a tariff on thefood that you are buying.
That's a tax on groceries.
They're going to be moreexpensive.
(01:33):
We have now the UnitedSteelworkers, the American Farm
Bureau, the Chamber of Commerceall saying this is going to hurt
America.
Stock futures are down.
You are hurting yourselves.
You are taxing regularAmericans and we are going to
fight back.
And Canada is your biggestmarket.
(01:54):
Canada is a bigger market forUS exporters than China, japan,
the UK and France combined.
For Americans like yourbusiness, people right, the
customer is always right, andyour customer is really angry at
you.
The whole country is behind theretaliation the prime minister
(02:14):
has announced.
So now we are going to taxAmerican exporters who are
trying to sell us stuff.
That means Americans are goingto lose jobs.
So this is really, it is selfmutilation.
America is hurting itself.
We think that it is utterlycrazy and we're also really,
(02:35):
really angry at you.
Speaker 4 (02:37):
So, madam Deputy Prime Minister, I was really
struck when Prime MinisterTrudeau spoke over the weekend,
the sense of betrayal that heexpressed that we have been
there with the US.
He was saying I'm paraphrasingevery step of the way, even in
times of need, and now this iscoming out of nowhere.
Elaborate on that, please, andalso, just more specifically,
just remind viewers just howclosely linked these two nations
are, particularly whether it'speople or goods going back and
(03:01):
forth across the border,sometimes multiple times a day
people or goods going back andforth across the border,
sometimes multiple times a day.
Speaker 3 (03:12):
The prime minister has been great and I have to
tell you the whole country israllying behind him.
We all feel personally hurt andthat hurt is now becoming anger
.
You know we pride ourselves onbeing a polite, nice country,
but at the Raptors game lastnight the American anthem was
booed.
At a Senators hockey game overthe weekend, the American anthem
(03:33):
was booed.
Because we do feel like we areyour friends, we're your
neighbors, we are your alliesand you guys are really lucky to
have us on your northern border.
The fact that you have thissafe, secure, friendly country
on your northern border isfoundational to American
prosperity, and now you'reslapping us in the face.
(03:55):
I mean, the tariffs againstCanada are higher than the
tariffs imposed against China.
What's going on here, guys?
It's China, what's?
Speaker 5 (04:04):
going on here, guys.
It's Ali Batali.
I have a question for you inregards to the way that these
tariffs have been put on.
The Trump administration issaying that it's because they
want to stem the flow offentanyl through borders as well
as illegal immigration.
But in your conversations andin the conversations- that these
(04:30):
governments are having.
Speaker 3 (04:31):
Do you have a sense of what the Canadians would even
have to say to get thesetariffs removed and appease the
administration?
Well, thank you for thequestion, Ali, and the fact is
it is.
These tariffs are being imposedtruly for utterly no reason.
The pretext offered is theflimsiest pretext possible.
The pretext offered is theflimsiest pretext possible.
Less than 1% in fact, around0.2% of the fentanyl that comes
into the US comes through theCanadian border.
(04:53):
If border security were theissue, this could be solved in
five minutes.
We want a secure border too.
We would like to stop theillegal US guns that are
smuggled into Canada and causedeaths on Canadian streets, and
we are very happy to worktogether to not have asylum
seekers cross in eitherdirection.
(05:14):
The president has also directlythreatened our national
sovereignty.
He has said over the weekendthat if we were to become the
51st state, there would be notariffs.
Canadians really, really,really, are angry about that,
and I do want to say we want tobe your friend, we want to be
(05:36):
your partner, we want to be yourneighbor.
We're good at that.
We've done it for decades anddecades, um, but we are proud of
our country.
We're really proud to beCanadian.
Our sovereignty is notnegotiable and if you hit us, we
are going to hit back and thewhole country is going to be
proud to do that Well, andCanada has been Mika.
Speaker 2 (06:00):
Canada has been our friends, our allies, our best
trading partner and again, asChris just said and so many
Americans need to understandthat, the fact that the longest
peaceful, contiguous border inthe world is the northern border
that starts at Maine and goesall the way, all the way over to
(06:23):
Washington state, and the factthat we don't have to have
troops on that border becausecanada is such a good friend
again, uh, this is again for forso many canadians, just
shocking so also a friend,christia, who was on morning joe
in the early days, um, alongwith all of us, uh, sharing her
(06:44):
political analysis.
Speaker 6 (06:45):
She is educated steeply, not in just Canadian
values, but American values andthe American Constitution.
And so to your question ofwhat's going on here, guys,
christia, I ask you, imposingtariffs on a friendly border
nation, what do you think isgoing on here?
(07:05):
What's your assessment ofwhat's happening here?
Speaker 3 (07:10):
You're the Americans and I'm going to leave that up
to you, but I do have a messagefor you, which is we are a great
ally and partner.
There is an exit ramp here.
There is a win-win here.
For all of our history ascountries, we have been great,
(07:31):
mutually beneficial partners andfriends.
Ronald Reagan famously saidwe're more than friends, we are
kin, and he said that theCanada-US relationship is the
best, the most mutuallybeneficial relationship between
two countries in history.
Ronald Reagan said that he wasa smart guy.
(07:52):
He was right.
But what I will also say is thisisn't going to work.
You know, this is a colossalact of self-mutilation where
America is hurting itself, andplease know that we think it is
utter madness.
(08:13):
We are not going to back down.
We are really proud to beCanadian.
We love our country so much.
Canadians are rallying aroundthis issue.
We're going to stand up forourselves and you know I used to
say we do it more in sorrowthan in anger.
But we're moving away from thesorrow feeling towards really
(08:37):
being angry about this becauseit's so unjustified and so
pointless.
Speaker 7 (08:44):
The dumbest trade war in history.
Trump will eventually impose25% tariffs on Canada and Mexico
for no good reason.
So President Trump will firehis first salvo of tariffs,
(09:04):
supposedly on Saturday, againstthose notorious American
adversaries, mexico and Canada.
They'll get hit with a 25%border tax, while China,
america's quote-unquote realadversary, will endure 10%.
This reminds me of the oldBernard Lewis joke that it's
(09:29):
risky to be America's enemy, butit can be fatal to be America's
friend.
Leaving China aside, trump'sjustification for this economic
assault on the neighbors makesno sense.
White House Press SecretaryCarolyn LeVette says that
they're enabling illegal drugsto pour into America.
(09:50):
But drugs have flown into theUS for decades and will continue
to do so as long as theAmerican people keep using them.
Neither country can stop that.
Drugs may be an excuse, sinceTrump has made it clear his
tariffs plan is basicallybecause he likes tariffs for
(10:11):
their own sake.
We don't need the products theyhave.
Trump said on Thursday we haveall the oil you need.
We have all the trees you need.
Meaning lumber Trump sometimessounds as if the US shouldn't
import anything at all, thatAmerica can be perfectly closed
as a closed economy, makingeverything at home.
This is called a TARKY and itisn't the world we live in or
(10:38):
the one we should want to livein, as Mr Trump may soon find
out.
Take the US auto industry, whichis really a North American
industry because supply chainsin three countries are highly
integrated.
In 2024, canada supplied almost13 percent of US imports.
Of US auto parts in Mexico,nearly 42 percent, made on the
(11:11):
continent, goes back and forthacross the border half a dozen
times or more, as companiessource components and add value
in the most cost-effective ways,and everyone benefits.
The office of the us traderepresentative says that in the
2023, the industry added morethan 809 billion to the united
states economy, or about 11.2%of the total US manufacturing
(11:33):
output, supporting 9.7 milliondirect and indirect US jobs.
In 2022, the US exported $75.4billion in vehicles and parts to
Canada and Mexico, vehicles andparts to Canada and Mexico.
The number jumped 14% in 2023and $86.2 billion, according to
(11:55):
the American Automotive PolicyCouncil.
American carmakers would be muchless competitive without this
trade.
Regional integration is now anindustry-wide manufacturing
strategy, also employed in Japan, korea and Europe, aimed at
using a variety of high-skilledand low-cost labor markets to
source components, software andassembly.
The results have been that theUS industrial capacity in autos
(12:19):
has grown alongside an increasein import motor vehicles engines
and parts.
From 1995 to 2019, imports ofautos engines and parts rose
169%, while the US industrialcapacity in autos engines and
parts rose 71%.
As the Cato Institute's ScottLitcom puts it, the data shows
(12:40):
that as imports go up, usproduction goes up.
Good-paying auto jobs in Texas,ohio, illinois and Michigan owe
their competitors to thisecosystem, relying heavily on
suppliers in Mexico and Canada.
Tariffs will also cause mayhemin the cross-border trade in
(13:02):
farm goods.
In the fiscal 2024, mexicanfood exports made up about 23
percent of the total usagriculture imports, while
canada supplied some 20 percent.
Many top us girls have moved tomexico because limits on legal
immigration have made it hard tofind workers in the us.
Mexico now supplies and 90percent of avocados sold in the
(13:24):
us, and trump is, I guess, goingto be an avocado nationalist.
Then there's the prospect ofretaliation, which Canada and
Mexico have shown they know howto do for the maximum political
impact.
In 2009, the Obamaadministration and the
congressional Democrats ended apilot program that allowed
(13:46):
Mexico long haul truckers intothe US and stipulated in NAFTA.
Mexico responded with targetedretaliation on 90 US goods to
pressure industry in keycongressional districts.
So these included Californiagrapes and wine, oregon
(14:06):
Christmas trees and cherries,jams, jellies from Ohio and
North Dakota and soy.
When Trump imposed steel andaluminum on tariffs in 2018,
mexico got results using thesame tactic, putting tariffs on
steel, pork products, freshcheese and bourbon.
Canada Prime Minister, justinTrudeau has promised to respond
(14:27):
to the US tariffs on adollar-for-dollar basis.
Canada could suffer a large GDPhit, since it's a much smaller
economy, but American consumerswill feel the bit and the lot as
far as when it comes to thecost for some goods.
Now, none of this is supposedto happen under the
(14:50):
US-Mexico-Canada trade agreementthat Trump negotiated and
signed in his first tame, the USwillingness to ignore the
treaty obligations, even withfriends, will make other
countries eager to do deals.
Maybe Trump will claim victoryand pull back if he wins some
token concessions, but if NorthAmerican trade wars persist?
No-transcript.
(15:16):
I have a show question todayfrom the longtime Patreon Gene
who says why does Elon Musk haveaccess to the Treasury payment
system?
So Elon Musk vowed yesterday tounilaterally cancel hundreds of
millions of dollars worth ofgovernment grants after he and
(15:36):
his goons gained access to theTreasury Department's vast
system over the weekend.
Now the Treasury systemdisburses $5.4 trillion a year,
or 88% of all federal payments,including a Social Security
check.
David Lindbergh, who had spentmore than 36 years in government
(15:58):
and was responsible foroverseeing the payment systems,
resigned abruptly Friday ratherthan to turn over the systems to
Musk.
So, in short, the world'srichest man bankrolls Trump's
reelection campaign to the tuneof some quarter of a billion
dollars and in return, trump'stasked him with running a
(16:19):
so-called Department ofGovernment Efficiency and
allowed him to get his hands onthe keys to the kingdom.
But Musk hasn't been confirmedby Congress.
His department was neverauthorized by Congress.
No one other than Trump hasgiven Musk any authority.
No one knows exactly whose Muskgoons are, and they have not
(16:40):
been vetted yet are handlingsome of the most sensitive
personal information in thegovernment.
Not even Trump has theauthority to stop social
security payments, let aloneMedicare or Medicaid or
unemployment insurance or foodstamps.
And yet Musk has been givencontrol of this, and his goon
(17:01):
squad asserts that they're ableto do so if they believe those
payments are illegal.
Musk boasted on his social mediasite X that he was rapidly
shutting down illegal payments.
But who is Musk to decide ifpayments are illegal?
Uh must, boast came in responseto a post on x by mike flynn's
(17:25):
trump's disgrace former nationalsecurity advisor that contained
a spreadsheet showinggovernment payments to a number
of lutheran charities, which, bythe way, are doing important
work and obtain the grantslegally.
Flynn claimed that thescreenshots show there are many
more organizations cashing in onour hard-earned money.
But how did Flynn, who Trumppardoned in 2020 after Flynn
(17:46):
pled guilty to lying about hiscontacts with Russia, obtain a
screenshot of those governmentpayments?
And what else does Flynn, muskand any number of Trump insiders
know about the governmentpayments made to any group or
individual?
The conflicts of interest arewild.
Musk's own companies aregovernment contractors who get
(18:08):
paid through the Treasurypayment system.
Other contracts competedirectly with Musk's companies.
Musk's goons with ties to thetech sector could benefit
financially from steeringfederal money this way or that
way.
Financially from steeringfederal money this way or that
way.
And why does michael flynn havethis kind of access after
pleading guilty to a federalcrime?
(18:28):
Flynn has spent the last fewyears as a headliner for a uh
reawakening america tour uh ratfor short.
Our traveling carnival of megapolitics.
Trump's prophecies, anti-vaxrhetoric, covid-19 conspiracies,
christian nationalist messageof revenge against those who
oppose Trump.
A regular on a tour with Flynnwas Cash Patel, trump's nominee
(18:53):
to lead the FBI.
Other musk goons have gainedaccess to the US Agency for
International Development.
Following a clash with securityofficials over the weekend,
they effectively closed theagency.
Reminder, usaid is anindependent organization whose
independence is codified intolaw.
It is a coup, said a currentUSAID official.
(19:15):
It was unclear if ever theagency would be up and running
again.
The official added.
Last week Muscoons locked careercivil servants out of their
computer systems at the Officeof Personal Management
containing personal data ofmillions of federal employees,
including dates of birth, socialsecurity numbers, appraisals,
(19:36):
home addresses, pay grades andleft of service, home addresses,
pay grades and lift of service.
Senior career employees at theOffice of Personal Management
had their access to some of thedepartment's data systems
revoked.
The actions inside the OPM makeit harder for anyone outside
Musk's inner circle to actuallyknow what's going on.
So, friends, this does seemlike a coup.
(19:58):
Offhand, I can think of atleast eight federal laws that
have been broken by Musk and hisgoons over the last few days,
and at least true provisions ofthe US Constitution.
Much of this occurred over theweekend.
Very few in bureaucracyactually work on the weekends,
so it's like the opposing teamjust leaves the field for two
days.
Musk wrote on X on Saturday.
(20:20):
Hello, musk, opposing teamworks for you, musk works for
Trump and Musk, musk and hisgoons guard are riding roughshod
over the institutions of ourgovernment, negating decisions
that have been made by Congress.
They're trampling on ourdemocracy and getting
information about you that theyhave no right to have.
(20:40):
Democratic lawmakers, alongwith Republican lawmakers who
still possess a shred ofintegrity, should immediately
seek injunction from the federalcourts to stop this pillage Now
.
Meanwhile, you may want to callyour senators and
representatives in Congress totell them don't let Elon Musk
(21:00):
mess with your social securityor anything else.
Now.
That number is 202-224-3121.
202-224-3121.
Thank you for the question Now.
Unions representing federalworkers sued the Treasury
(21:23):
Department and its head, scottBissett, on Monday in an effort
to block Musk and his team fromaccessing the federal payment
system, saying that it amountedto an unlawful disclosure of
personal and financialinformation of millions of
people.
The suit was the latest effortby unions to push back against a
(21:44):
flurry of Trump administrationdirectives aimed at undermining
federal bureaucracy.
Administration officials havemade offers to most civilian
federal workers to seekresignations, and dispute over
federal payment system was apart of a wider effort to
restrict the disbursement ofmoney for programs approved by
(22:06):
Congress.
Musk and his lieutenantsrepresenting an outside
adversary group aimed atreducing waste in federal
government, the so-calledDepartment of Government
Efficiency, gained access to theTreasury Department's system
late Friday.
The move immediately became akey skirmish in Musk's wider war
(22:27):
on the federal government.
The Trump administration pushedout a top Treasury Department
official who refused to giveMusk team access to the payment
system.
Must team access to the paymentsystem and a former Treasury
official said they were notaware of a political appointee
ever before seeking access toits details.
So Monday's lawsuit said thatthe system, which sends out
(22:51):
money on behalf of the entirefederal government and dispersed
more than $5 trillion in fiscalyear 2023, includes sensitive
information needed to sendpayments like tax refunds,
veterans benefits, salaries forworkers and social security
payments.
Federal law heavily restrictsdisclosures of that data.
The suit accused Musk and histeam that gained access to those
(23:13):
recordings of violating thePrivacy Act and the Internal
Revenue Code, laws that restrictaccess to taxpayers and other
personal information unless theperson is an employee engaged in
official duties that requirehaving access to those records.
The suit also said that MrBessett's giving Musk's team's
access to the payment system wasarbitrary and capricious and
(23:36):
exceeds his statutorysubstitutionary authority and
exceeds his statutory uhsubstitutionary authority.
Now musk allies were givenaccess to the payment systems,
were made treasury employees,past government backgrounds
checks and obtained thenecessary security clearance.
According to two top peoplefamiliar with the situation, who
requested anonymity to discussthe eternal arrangements, the
(23:57):
scale of this intrusion intoindividuals' privacy is massive
and unprecedented, said a19-page suit filed in the
Federal District Court inWashington.
Millions of people cannot avoidengaging in financial
transactions with the federalgovernment and therefore cannot
avoid having their sensitivepersonal and financial
information maintained ingovernment records.
(24:18):
It continued that SecretaryBissett's actions granting
DOGE-affiliated individuals full, continuous and online access
to that information for anunspecified period of time,
means that retirees, taxpayers,fellow employees, companies and
other individuals from all walksof life have no assurance that
their information will receivethe protection that federal laws
(24:40):
afford.
The American Federation ofGovernment Employees, the
largest union of federalemployees, representing more
than 800,000 workers, filed asuit alongside the service
employees of International Unionand Alliance for Retired
Americans, a group thatrepresents the interests of
retired union workers.
All three groups are affiliatedwith the AFL-CIO, an umbrella
(25:05):
group with more than 50 unionsrepresenting more than 12.5
million workers.
Speaker 1 (25:11):
Peaceful trading partners are not our enemies.
They are our allies.
We should beware of thedemagogues who are ready to
declare a trade war against ourfriends.
Beware of the demagogues whoare ready to declare a trade war
against our friends, weakeningour economy, our national
security and the entire freeworld, all while cynically
waving the American flag.
The expansion of theinternational economy is not a
(25:34):
foreign invasion.
It is an American triumph, onewe worked hard to achieve and
something central to our visionof a peaceful and prosperous
world of freedom.
Speaker 7 (25:43):
So that was a blast from the past on President
Ronald Reagan discussing tradeand trade wars, and I think in
this case President RonaldReagan is correct.
For the land of the free and the home of the brave.
Speaker 2 (00:20):
Oh, Kennedy, I hope my native land.
Speaker 1 (00:30):
Ten-year-old Kyra Daniels.
Speaker 3 (01:11):
This really is utter madness and you know, from our
perspective, the key thing hereis you guys are engaged in this
colossal act of self-harm.
These tariffs are going to makelife more expensive for
Americans.
You have put a tariff on thegas we sell you, so gas is going
to be more expensive.
You have put a tariff on thefood that you are buying.
That's a tax on groceries.
They're going to be moreexpensive.
(01:33):
We have now the UnitedSteelworkers, the American Farm
Bureau, the Chamber of Commerceall saying this is going to hurt
America.
Stock futures are down.
You are hurting yourselves.
You are taxing regularAmericans and we are going to
fight back.
And Canada is your biggestmarket.
(01:54):
Canada is a bigger market forUS exporters than China, japan,
the UK and France combined.
For Americans like yourbusiness, people right, the
customer is always right, andyour customer is really angry at
you.
The whole country is behind theretaliation the prime minister
(02:14):
has announced.
So now we are going to taxAmerican exporters who are
trying to sell us stuff.
That means Americans are goingto lose jobs.
So this is really, it is selfmutilation.
America is hurting itself.
We think that it is utterlycrazy and we're also really,
(02:35):
really angry at you.
Speaker 4 (02:37):
So, madam Deputy Prime Minister, I was really
struck when Prime MinisterTrudeau spoke over the weekend,
the sense of betrayal that heexpressed that we have been
there with the US.
He was saying I'm paraphrasingevery step of the way, even in
times of need, and now this iscoming out of nowhere.
Elaborate on that, please, andalso, just more specifically,
just remind viewers just howclosely linked these two nations
are, particularly whether it'speople or goods going back and
(03:01):
forth across the border,sometimes multiple times a day
people or goods going back andforth across the border,
sometimes multiple times a day.
Speaker 3 (03:12):
The prime minister has been great and I have to
tell you the whole country israllying behind him.
We all feel personally hurt andthat hurt is now becoming anger
.
You know we pride ourselves onbeing a polite, nice country,
but at the Raptors game lastnight the American anthem was
booed.
At a Senators hockey game overthe weekend, the American anthem
(03:33):
was booed.
Because we do feel like we areyour friends, we're your
neighbors, we are your alliesand you guys are really lucky to
have us on your northern border.
The fact that you have thissafe, secure, friendly country
on your northern border isfoundational to American
prosperity, and now you'reslapping us in the face.
(03:55):
I mean, the tariffs againstCanada are higher than the
tariffs imposed against China.
What's going on here, guys?
It's China, what's?
Speaker 5 (04:04):
going on here, guys.
It's Ali Batali.
I have a question for you inregards to the way that these
tariffs have been put on.
The Trump administration issaying that it's because they
want to stem the flow offentanyl through borders as well
as illegal immigration.
But in your conversations andin the conversations- that these
(04:30):
governments are having.
Speaker 3 (04:31):
Do you have a sense of what the Canadians would even
have to say to get thesetariffs removed and appease the
administration?
Well, thank you for thequestion, Ali, and the fact is
it is.
These tariffs are being imposedtruly for utterly no reason.
The pretext offered is theflimsiest pretext possible.
The pretext offered is theflimsiest pretext possible.
Less than 1% in fact, around0.2% of the fentanyl that comes
into the US comes through theCanadian border.
(04:53):
If border security were theissue, this could be solved in
five minutes.
We want a secure border too.
We would like to stop theillegal US guns that are
smuggled into Canada and causedeaths on Canadian streets, and
we are very happy to worktogether to not have asylum
seekers cross in eitherdirection.
(05:14):
The president has also directlythreatened our national
sovereignty.
He has said over the weekendthat if we were to become the
51st state, there would be notariffs.
Canadians really, really,really, are angry about that,
and I do want to say we want tobe your friend, we want to be
(05:36):
your partner, we want to be yourneighbor.
We're good at that.
We've done it for decades anddecades, um, but we are proud of
our country.
We're really proud to beCanadian.
Our sovereignty is notnegotiable and if you hit us, we
are going to hit back and thewhole country is going to be
proud to do that Well, andCanada has been Mika.
Speaker 2 (06:00):
Canada has been our friends, our allies, our best
trading partner and again, asChris just said and so many
Americans need to understandthat, the fact that the longest
peaceful, contiguous border inthe world is the northern border
that starts at Maine and goesall the way, all the way over to
(06:23):
Washington state, and the factthat we don't have to have
troops on that border becausecanada is such a good friend
again, uh, this is again for forso many canadians, just
shocking so also a friend,christia, who was on morning joe
in the early days, um, alongwith all of us, uh, sharing her
(06:44):
political analysis.
Speaker 6 (06:45):
She is educated steeply, not in just Canadian
values, but American values andthe American Constitution.
And so to your question ofwhat's going on here, guys,
christia, I ask you, imposingtariffs on a friendly border
nation, what do you think isgoing on here?
(07:05):
What's your assessment ofwhat's happening here?
Speaker 3 (07:10):
You're the Americans and I'm going to leave that up
to you, but I do have a messagefor you, which is we are a great
ally and partner.
There is an exit ramp here.
There is a win-win here.
For all of our history ascountries, we have been great,
(07:31):
mutually beneficial partners andfriends.
Ronald Reagan famously saidwe're more than friends, we are
kin, and he said that theCanada-US relationship is the
best, the most mutuallybeneficial relationship between
two countries in history.
Ronald Reagan said that he wasa smart guy.
(07:52):
He was right.
But what I will also say is thisisn't going to work.
You know, this is a colossalact of self-mutilation where
America is hurting itself, andplease know that we think it is
utter madness.
(08:13):
We are not going to back down.
We are really proud to beCanadian.
We love our country so much.
Canadians are rallying aroundthis issue.
We're going to stand up forourselves and you know I used to
say we do it more in sorrowthan in anger.
But we're moving away from thesorrow feeling towards really
(08:37):
being angry about this becauseit's so unjustified and so
pointless.
Speaker 7 (08:44):
The dumbest trade war in history.
Trump will eventually impose25% tariffs on Canada and Mexico
for no good reason.
So President Trump will firehis first salvo of tariffs,
(09:04):
supposedly on Saturday, againstthose notorious American
adversaries, mexico and Canada.
They'll get hit with a 25%border tax, while China,
america's quote-unquote realadversary, will endure 10%.
This reminds me of the oldBernard Lewis joke that it's
(09:29):
risky to be America's enemy, butit can be fatal to be America's
friend.
Leaving China aside, trump'sjustification for this economic
assault on the neighbors makesno sense.
White House Press SecretaryCarolyn LeVette says that
they're enabling illegal drugsto pour into America.
(09:50):
But drugs have flown into theUS for decades and will continue
to do so as long as theAmerican people keep using them.
Neither country can stop that.
Drugs may be an excuse, sinceTrump has made it clear his
tariffs plan is basicallybecause he likes tariffs for
(10:11):
their own sake.
We don't need the products theyhave.
Trump said on Thursday we haveall the oil you need.
We have all the trees you need.
Meaning lumber Trump sometimessounds as if the US shouldn't
import anything at all, thatAmerica can be perfectly closed
as a closed economy, makingeverything at home.
This is called a TARKY and itisn't the world we live in or
(10:38):
the one we should want to livein, as Mr Trump may soon find
out.
Take the US auto industry, whichis really a North American
industry because supply chainsin three countries are highly
integrated.
In 2024, canada supplied almost13 percent of US imports.
Of US auto parts in Mexico,nearly 42 percent, made on the
(11:11):
continent, goes back and forthacross the border half a dozen
times or more, as companiessource components and add value
in the most cost-effective ways,and everyone benefits.
The office of the us traderepresentative says that in the
2023, the industry added morethan 809 billion to the united
states economy, or about 11.2%of the total US manufacturing
(11:33):
output, supporting 9.7 milliondirect and indirect US jobs.
In 2022, the US exported $75.4billion in vehicles and parts to
Canada and Mexico, vehicles andparts to Canada and Mexico.
The number jumped 14% in 2023and $86.2 billion, according to
(11:55):
the American Automotive PolicyCouncil.
American carmakers would be muchless competitive without this
trade.
Regional integration is now anindustry-wide manufacturing
strategy, also employed in Japan, korea and Europe, aimed at
using a variety of high-skilledand low-cost labor markets to
source components, software andassembly.
The results have been that theUS industrial capacity in autos
(12:19):
has grown alongside an increasein import motor vehicles engines
and parts.
From 1995 to 2019, imports ofautos engines and parts rose
169%, while the US industrialcapacity in autos engines and
parts rose 71%.
As the Cato Institute's ScottLitcom puts it, the data shows
(12:40):
that as imports go up, usproduction goes up.
Good-paying auto jobs in Texas,ohio, illinois and Michigan owe
their competitors to thisecosystem, relying heavily on
suppliers in Mexico and Canada.
Tariffs will also cause mayhemin the cross-border trade in
(13:02):
farm goods.
In the fiscal 2024, mexicanfood exports made up about 23
percent of the total usagriculture imports, while
canada supplied some 20 percent.
Many top us girls have moved tomexico because limits on legal
immigration have made it hard tofind workers in the us.
Mexico now supplies and 90percent of avocados sold in the
(13:24):
us, and trump is, I guess, goingto be an avocado nationalist.
Then there's the prospect ofretaliation, which Canada and
Mexico have shown they know howto do for the maximum political
impact.
In 2009, the Obamaadministration and the
congressional Democrats ended apilot program that allowed
(13:46):
Mexico long haul truckers intothe US and stipulated in NAFTA.
Mexico responded with targetedretaliation on 90 US goods to
pressure industry in keycongressional districts.
So these included Californiagrapes and wine, oregon
(14:06):
Christmas trees and cherries,jams, jellies from Ohio and
North Dakota and soy.
When Trump imposed steel andaluminum on tariffs in 2018,
mexico got results using thesame tactic, putting tariffs on
steel, pork products, freshcheese and bourbon.
Canada Prime Minister, justinTrudeau has promised to respond
(14:27):
to the US tariffs on adollar-for-dollar basis.
Canada could suffer a large GDPhit, since it's a much smaller
economy, but American consumerswill feel the bit and the lot as
far as when it comes to thecost for some goods.
Now, none of this is supposedto happen under the
(14:50):
US-Mexico-Canada trade agreementthat Trump negotiated and
signed in his first tame, the USwillingness to ignore the
treaty obligations, even withfriends, will make other
countries eager to do deals.
Maybe Trump will claim victoryand pull back if he wins some
token concessions, but if NorthAmerican trade wars persist?
No-transcript.
(15:16):
I have a show question todayfrom the longtime Patreon Gene
who says why does Elon Musk haveaccess to the Treasury payment
system?
So Elon Musk vowed yesterday tounilaterally cancel hundreds of
millions of dollars worth ofgovernment grants after he and
(15:36):
his goons gained access to theTreasury Department's vast
system over the weekend.
Now the Treasury systemdisburses $5.4 trillion a year,
or 88% of all federal payments,including a Social Security
check.
David Lindbergh, who had spentmore than 36 years in government
(15:58):
and was responsible foroverseeing the payment systems,
resigned abruptly Friday ratherthan to turn over the systems to
Musk.
So, in short, the world'srichest man bankrolls Trump's
reelection campaign to the tuneof some quarter of a billion
dollars and in return, trump'stasked him with running a
(16:19):
so-called Department ofGovernment Efficiency and
allowed him to get his hands onthe keys to the kingdom.
But Musk hasn't been confirmedby Congress.
His department was neverauthorized by Congress.
No one other than Trump hasgiven Musk any authority.
No one knows exactly whose Muskgoons are, and they have not
(16:40):
been vetted yet are handlingsome of the most sensitive
personal information in thegovernment.
Not even Trump has theauthority to stop social
security payments, let aloneMedicare or Medicaid or
unemployment insurance or foodstamps.
And yet Musk has been givencontrol of this, and his goon
(17:01):
squad asserts that they're ableto do so if they believe those
payments are illegal.
Musk boasted on his social mediasite X that he was rapidly
shutting down illegal payments.
But who is Musk to decide ifpayments are illegal?
Uh must, boast came in responseto a post on x by mike flynn's
(17:25):
trump's disgrace former nationalsecurity advisor that contained
a spreadsheet showinggovernment payments to a number
of lutheran charities, which, bythe way, are doing important
work and obtain the grantslegally.
Flynn claimed that thescreenshots show there are many
more organizations cashing in onour hard-earned money.
But how did Flynn, who Trumppardoned in 2020 after Flynn
(17:46):
pled guilty to lying about hiscontacts with Russia, obtain a
screenshot of those governmentpayments?
And what else does Flynn, muskand any number of Trump insiders
know about the governmentpayments made to any group or
individual?
The conflicts of interest arewild.
Musk's own companies aregovernment contractors who get
(18:08):
paid through the Treasurypayment system.
Other contracts competedirectly with Musk's companies.
Musk's goons with ties to thetech sector could benefit
financially from steeringfederal money this way or that
way.
Financially from steeringfederal money this way or that
way.
And why does michael flynn havethis kind of access after
pleading guilty to a federalcrime?
(18:28):
Flynn has spent the last fewyears as a headliner for a uh
reawakening america tour uh ratfor short.
Our traveling carnival of megapolitics.
Trump's prophecies, anti-vaxrhetoric, covid-19 conspiracies,
christian nationalist messageof revenge against those who
oppose Trump.
A regular on a tour with Flynnwas Cash Patel, trump's nominee
(18:53):
to lead the FBI.
Other musk goons have gainedaccess to the US Agency for
International Development.
Following a clash with securityofficials over the weekend,
they effectively closed theagency.
Reminder, usaid is anindependent organization whose
independence is codified intolaw.
It is a coup, said a currentUSAID official.
(19:15):
It was unclear if ever theagency would be up and running
again.
The official added.
Last week Muscoons locked careercivil servants out of their
computer systems at the Officeof Personal Management
containing personal data ofmillions of federal employees,
including dates of birth, socialsecurity numbers, appraisals,
(19:36):
home addresses, pay grades andleft of service, home addresses,
pay grades and lift of service.
Senior career employees at theOffice of Personal Management
had their access to some of thedepartment's data systems
revoked.
The actions inside the OPM makeit harder for anyone outside
Musk's inner circle to actuallyknow what's going on.
So, friends, this does seemlike a coup.
(19:58):
Offhand, I can think of atleast eight federal laws that
have been broken by Musk and hisgoons over the last few days,
and at least true provisions ofthe US Constitution.
Much of this occurred over theweekend.
Very few in bureaucracyactually work on the weekends,
so it's like the opposing teamjust leaves the field for two
days.
Musk wrote on X on Saturday.
(20:20):
Hello, musk, opposing teamworks for you, musk works for
Trump and Musk, musk and hisgoons guard are riding roughshod
over the institutions of ourgovernment, negating decisions
that have been made by Congress.
They're trampling on ourdemocracy and getting
information about you that theyhave no right to have.
(20:40):
Democratic lawmakers, alongwith Republican lawmakers who
still possess a shred ofintegrity, should immediately
seek injunction from the federalcourts to stop this pillage Now
.
Meanwhile, you may want to callyour senators and
representatives in Congress totell them don't let Elon Musk
(21:00):
mess with your social securityor anything else.
Now.
That number is 202-224-3121.
202-224-3121.
Thank you for the question Now.
Unions representing federalworkers sued the Treasury
(21:23):
Department and its head, scottBissett, on Monday in an effort
to block Musk and his team fromaccessing the federal payment
system, saying that it amountedto an unlawful disclosure of
personal and financialinformation of millions of
people.
The suit was the latest effortby unions to push back against a
(21:44):
flurry of Trump administrationdirectives aimed at undermining
federal bureaucracy.
Administration officials havemade offers to most civilian
federal workers to seekresignations, and dispute over
federal payment system was apart of a wider effort to
restrict the disbursement ofmoney for programs approved by
(22:06):
Congress.
Musk and his lieutenantsrepresenting an outside
adversary group aimed atreducing waste in federal
government, the so-calledDepartment of Government
Efficiency, gained access to theTreasury Department's system
late Friday.
The move immediately became akey skirmish in Musk's wider war
(22:27):
on the federal government.
The Trump administration pushedout a top Treasury Department
official who refused to giveMusk team access to the payment
system.
Must team access to the paymentsystem and a former Treasury
official said they were notaware of a political appointee
ever before seeking access toits details.
So Monday's lawsuit said thatthe system, which sends out
(22:51):
money on behalf of the entirefederal government and dispersed
more than $5 trillion in fiscalyear 2023, includes sensitive
information needed to sendpayments like tax refunds,
veterans benefits, salaries forworkers and social security
payments.
Federal law heavily restrictsdisclosures of that data.
The suit accused Musk and histeam that gained access to those
(23:13):
recordings of violating thePrivacy Act and the Internal
Revenue Code, laws that restrictaccess to taxpayers and other
personal information unless theperson is an employee engaged in
official duties that requirehaving access to those records.
The suit also said that MrBessett's giving Musk's team's
access to the payment system wasarbitrary and capricious and
(23:36):
exceeds his statutorysubstitutionary authority and
exceeds his statutory uhsubstitutionary authority.
Now musk allies were givenaccess to the payment systems,
were made treasury employees,past government backgrounds
checks and obtained thenecessary security clearance.
According to two top peoplefamiliar with the situation, who
requested anonymity to discussthe eternal arrangements, the
(23:57):
scale of this intrusion intoindividuals' privacy is massive
and unprecedented, said a19-page suit filed in the
Federal District Court inWashington.
Millions of people cannot avoidengaging in financial
transactions with the federalgovernment and therefore cannot
avoid having their sensitivepersonal and financial
information maintained ingovernment records.
(24:18):
It continued that SecretaryBissett's actions granting
DOGE-affiliated individuals full, continuous and online access
to that information for anunspecified period of time,
means that retirees, taxpayers,fellow employees, companies and
other individuals from all walksof life have no assurance that
their information will receivethe protection that federal laws
(24:40):
afford.
The American Federation ofGovernment Employees, the
largest union of federalemployees, representing more
than 800,000 workers, filed asuit alongside the service
employees of International Unionand Alliance for Retired
Americans, a group thatrepresents the interests of
retired union workers.
All three groups are affiliatedwith the AFL-CIO, an umbrella
(25:05):
group with more than 50 unionsrepresenting more than 12.5
million workers.
Speaker 1 (25:11):
Peaceful trading partners are not our enemies.
They are our allies.
We should beware of thedemagogues who are ready to
declare a trade war against ourfriends.
Beware of the demagogues whoare ready to declare a trade war
against our friends, weakeningour economy, our national
security and the entire freeworld, all while cynically
waving the American flag.
The expansion of theinternational economy is not a
(25:34):
foreign invasion.
It is an American triumph, onewe worked hard to achieve and
something central to our visionof a peaceful and prosperous
world of freedom.
Speaker 7 (25:43):
So that was a blast from the past on President
Ronald Reagan discussing tradeand trade wars, and I think in
this case President RonaldReagan is correct.
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