The majority of Canadians support or somewhat support applying new tariffs and duties to American-made goods if the U.S. pulls out of the North American Free Trade Agreement, according to a Nanos survey conducted for CTV News. I think that a lot of Canadians don't realize that we are the ones who need the U.S. as a Trading Partner, not the other way around!
Nearly 50 per cent of Canadians said they support and 26 per cent said they somewhat support new tariffs on American goods if the U.S. were to pull out of NAFTA and apply new tariffs and duties on Canadian goods and materials entering the U.S.
The U.S. is Canada’s largest trading partner. In 2016 we imported goods equal to $230M from the U.S. and exported goods worth $223M so we import about $6M more than we export. This is down $28M in the last five years. Not that we are not still purchasing these goods, just that we are sourcing them from other countries. Canada shipped US$408.8 billion worth of goods around the globe in 2015, down by -9.2% since 2011 with a big -13.7% drop from 2014 to 2015 – Our #1 export is oil which equals 19% of our exports followed by vehicles, machinery, gems and precious metals that collectively total more than 45% of all exports. Canada's exports to America amount to 76.8% of our overall exports. China 3.9%, the UK 3.1% and Mexico at 1.3%
Our top imports? Vehicles at 16% followed by machinery, electronics equipment and oil totaling 48% of all imports. Our fastest growing imports, no surprise, consumer goods – vegetables, dairy, meat and seafood, cereal etc. America's exports to Canada amount to 53.3% of our overall imports. China 12.2% and Mexico 5.8% of our overall imports. Virtually all of our imported products are purchased in U.S. dollars. The impact of this is that upon receipt of the goods the Importer must conver to Canadian Currency before moving the goods through the chain. This means that upon receipt the Importer adds approximately 30% to the cost of goods. If a Tarrif is imposed this is appliaed at landed cost so, in most cases it is uplifted by the same 30%. Canada collects approx. CAD$4 billion in import duties and tariffs a year. This is not "absorbed" by the Importer, it is passed on directly to the consumer in the cost-of-goods so for those that say that they would support new Tarrifs on U.S. goods are esentially saying "We are willing to pay more for goods imported from the U.S." If the NANOS Survey was to pose this question I'm pretty sure they would have received a much different answer.
Welcome to the Make Canada Affordable Again Blog. Within the Blog we will be highlighting issues and concerns that are shared by our readers. We invite you to participate as a Guest Blogger with your views, ideas and solutions to Make Canada Affordable Again. Hopefully we will also get some comments and input from our elected officials, fingers crossed on this one.
My New Years Resolution is that we can make a difference, we saw this with the U.S. Make America Great Again movement. The average Canadian can have a voice and it can be heard.
I look forward to hearing from you all and sharing my views.
I am a concerned Canadian that is fed up seeing companies and people leave Canada due to the high cost of doing business and living.