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Written by Sarah Berman Copy Editor, Digital News
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Good morning. Canadian businesses are already feeling the sting of new U.S. tariffs as Prime Minister Mark Carney promises support for hard-hit sectors and a "dollar for dollar" response. We'll take a closer look at how the tariffs redistribute wealth and revisit the Gordie Howe bridge opening saga.
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THE LATEST
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- U.S. President Donald Trump said on social media Sunday that Canada "wants the benefits" of being a U.S. state "without being one." Prime Minister Mark Carney said reciprocal "dollar for dollar" tariffs begin Sept. 8.
- Conservative MP Shuvaloy Majumdar is urging the federal government to release "the full details" of the Canada-U.S. trade deal that was on the table before talks collapsed.
- Ukrainian President Volodymyr Zelenskyy said holding elections during war would "destroy the country."
- The suspect in a shooting that injured three people in Fort Smith, N.W.T., on Saturday has been arrested.
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FEATURED STORIES
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(Mark Schiefelbein/The Associated Press)
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Trickle-up, not trickle-down: How Trump's tariffs redistribute wealth
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While tariffs have brought stress and hardship for some, they've brought a windfall for others. Economists say it's big, politically connected companies coming out ahead.
What's happening: Tariffs already tend to concentrate wealth, but this effect is made stronger by the arbitrary and political nature of the U.S. tariff exemption and rebate regimes. Walmart has been the biggest winner on the refund front, getting back almost $3 billion. Retailer Target received just under $1 billion. Those who can hire lobbyists "are doing a lot better than the small guys," says economist Kimberly Clausing.
Why it matters: Economists are skeptical that rebates will trickle down to consumers, who continue to pay the lion's share of the cost of tariffs. Clausing says U.S. buyers could be bearing between 80 and 100 per cent of the burden. U.S. President Donald Trump has presented tariffs as a way to pay for income tax cuts. But while the tax cuts went overwhelmingly to the rich, the tariffs were paid mostly by the middle class. Plus, revenues from tariffs don't adequately cover the cost of tax cuts for the wealthy.
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Canadian business leaders brace for lost deals after trade talks crumble
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Canadian businesses and industry leaders are bracing for the full effects of fresh 50 per cent U.S. tariffs, crossing their fingers that domestic support will come quickly.
What's happening: Dennis Darby, president of Canadian Manufacturers and Exporters, said manufacturers now face the "worst of all worlds." He says half of the members he's spoken to are putting investments like hiring on hold — a move that's "not good for our competitiveness." University of Calgary economist Trevor Tombe says job losses could rise to 87,000, concentrated in industries including agriculture, textile, electronics, furniture and plastics manufacturing.
Honey farm feels the sting: Podolski Honey Farms in Manitoba ships most of its honey south of the border and is effectively "out of business" because of the new U.S. tariffs, general manager Osee Podolsky told CBC News. "We can try to find more Canadian market share, but if many other beekeepers are trying to do the same, it may be a race to the bottom."
What's next: Dan Kelly, president of the Canadian Federation of Independent Business, said he hopes new support programs will succeed where others have failed. Kelly said the criteria of past relief programs effectively left out small businesses, making them "largely useless" to the business owners he represents. "Unless Ottawa's got something really, really good lined up right away … just the short-term effects are going to be significant."
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Battle of the bridges? Rival owner sought meeting with Ottawa before Gordie Howe opening
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The American owner of the Ambassador Bridge, Matthew Moroun, sought a meeting with senior Canadian officials about the new Gordie Howe bridge before the rival crossing opened — but what was discussed at that meeting remains largely a secret.
What's happening: Records obtained under the Access to Information Act show Moroun met with Canadian officials three and a half months before the opening — but portions of the agenda, as well as the government's account and analysis of the meeting, were redacted. Moroun had a lot on the line financially — the new bridge was expected to take almost half the Ambassador Bridge's traffic, according to U.S. government estimates.
Why it matters: The Gordie Howe International Bridge opening ended nearly a century of private monopoly over commercial bridge traffic between Windsor, Ont., and Detroit. Political experts say the dynamic of a privately owned bridge operating alongside a publicly owned competitor amid cross-border tensions is unusual — but the ministry that took the meeting says discussions like these are routine.
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