Trade Wars, Tariffs & The Unbreakable Canada-U.S. Bond
1997 - 2025 —a bold decisions and "national security" concerns.
The Trump administration slapped a 25% tariff on Canada. Why?
The Grand Tariff Experiment:
- Did trade collapse? No.
- Did Canada and the U.S. suddenly become independent economies? Not even close.
- Did businesses and consumers pay the price for this genius move? Absolutely.
The Numbers Don't Lie (Even If Politicians Do):
- Pre-Trump (1997-2017): Imports and exports humming along, correlation 0.90.
- Trump Era (2017-2021): Tariffs hit, but trade still grew. Correlation? 0.88.
- Post-Trump (2021-2024): Tariffs gone, trade boomed. Correlation? 0.87 (Still high.)
Smiling Politicians, Unshaken Markets
The best part? No matter who's in power, trade keeps chugging along. Liberals, Conservatives, Republicans, Democrats—everyone gets their moment in the spotlight, but the economy? It just does its thing.
The Real Motivation Behind It All
While politicians love grand gestures, trade data shows that economic forces are often stronger than political rhetoric. U.S. leaders campaign on protecting American jobs, while Canadian politicians promise to stand up for national interests. In reality, both countries remain deeply intertwined, and businesses adapt faster than policy changes. The economy rewards pragmatism, while politicians thrive on spectacle.