It really seems like Canada is in a tough spot economically. They don't have the scale to compete against, say, China or the United States but they want to protect domestic industries against foreign competition and so have enacted trade barriers and other protectionist policies like supporting Bombardier (or the dairy industry or whatever) even if it means higher prices for Canadiens and goes against free trade practices.
In my mind that makes a lot more sense as to why, at least in part, there is the ongoing trade dispute between the US and Canada (whether I agree or disagree with it and how it is handled would be a different matter). The US also seeks to in part protect domestic industries that are being outcompeted by China or face significant regulatory barriers (diary industry in Canada for example, other various exports to the EU, Chinese ban on American technology companies) and so we're winding up in a world where the US is now also putting the hammer down on protecting industries like the EU, China, and seemingly Canada does which is causing a lot of political conflict over trade and jobs.
It seems inevitable that as one or more countries put up trade barriers (EU, Canada, China being some large ones here) the US and others would eventually respond if they found that they were unable to compete on price due to government intervention.
The US also has significant agriculture subsidies. Most developed countries do.
In dairy, for example, if prices get "too low", the US directly buys excess supply to increase the price, makes direct payments to dairy farmers, and subsidizes feed (corn/soybeans) and farmers' insurance.
Most historical trade agreements between the US and friendly nations tolerated minor interventions and subsidies on both sides.
Trump is taking a completely different tact. His goal is not free trade or sustainable relationships. He recognizes the US is the stronger party in most of these negotiations, and wants to use that to extract concessions that explicitly favor the US, even if it strains and damages the economies of historical allies.
> Trump is taking a completely different tact. His goal is not free trade or sustainable relationships. He recognizes the US is the stronger party in most of these negotiations, and wants to use that to extract concessions that explicitly favor the US, even if it strains and damages the economies of historical allies.
I don't think that's even it. The end goal is humiliation of the other party. Trump would be pro-humiliation even if that didn't favour the US economically. (As it typically doesn't.)
Right, my understanding is that the US along with most developed countries provide agricultural subsidies and/or tariff agricultural products from other countries or provide other formal or informal trade barriers. Makes sense, in a way, as you need to keep your agricultural base if you have one. It seems logical that this could extend to other industries, car manufacturing, weapons/missiles, semiconductors, other various technologies. Healthcare. You get the picture.
But I think your comment about Trump is not quite nuanced enough and of course you have to include that the US is negotiating with other powerful parties like the EU and China so it's not really always the US negotiating with weaker parties. At the negotiating table I view each of those big 3 has having many cards to play, and both weaknesses and strengths that can be exploited.
When I say it's not nuanced enough what I mean is that, for example, American technology companies are simply banned from operating in China. In Europe, until I believe July or something American car exports were tariffed at a 10% rate, and then you have policies like the Online Streaming Act in Canada (I'm not exactly up to date on the current status but just recall it existing).
So while Trump's negotiating style is, arguably something to abhor, I think painting these engagements as simply a matter of Donald Trump isn't interested in free trade or sustainable relationships to be a bit off the mark. For example, you can't simultaneously claim that Donald Trump isn't interested in free trade while ignoring trade barriers put in place before he was even elected president. I'd also argue that in general most countries and people aren't actually interested in free trade and that it's more of a political tool, because that would require abandoning subsidies and protections and there are obviously very bad potential repercussions of doing so.
It really seems like Canada is in a tough spot economically. They don't have the scale to compete against, say, China or the United States but they want to protect domestic industries against foreign competition and so have enacted trade barriers and other protectionist policies like supporting Bombardier (or the dairy industry or whatever) even if it means higher prices for Canadiens and goes against free trade practices.
In my mind that makes a lot more sense as to why, at least in part, there is the ongoing trade dispute between the US and Canada (whether I agree or disagree with it and how it is handled would be a different matter). The US also seeks to in part protect domestic industries that are being outcompeted by China or face significant regulatory barriers (diary industry in Canada for example, other various exports to the EU, Chinese ban on American technology companies) and so we're winding up in a world where the US is now also putting the hammer down on protecting industries like the EU, China, and seemingly Canada does which is causing a lot of political conflict over trade and jobs.
It seems inevitable that as one or more countries put up trade barriers (EU, Canada, China being some large ones here) the US and others would eventually respond if they found that they were unable to compete on price due to government intervention.