The Canadian Economic Winter

[paxamericana]

https://www.cnn.com/2025/06/27/business/trump-breaks-off-canada-trade-talks

Due to Canadian tax on US digital services ;largely affecting Meta, Apple, Google, Amazon and Microsoft, Trump will now increase tarriff on all Canadian exports to the US. 

Truely a historic turn of event for Canada. This will further contribute to brain drain and siphoning of young talents and entruepenuer into the United States due to trade barriers. 

The domestic consumption in Canada is too weak to sustain local industries, job loss and recession will ensue leading to Stagflation. Without jobs, it will be harder to attract migrants. 

Edited 19 hours ago by paxamericana

[LinkSoul60]

11 hours ago, paxamericana said:

https://www.cnn.com/2025/06/27/business/trump-breaks-off-canada-trade-talks

Due to Canadian tax on US digital services ;largely affecting Meta, Apple, Google, Amazon and Microsoft, Trump will now increase tarriff on all Canadian exports to the US. 

Truely a historic turn of event for Canada. This will further contribute to brain drain and siphoning of young talents and entruepenuer into the United States due to trade barriers. 

The domestic consumption in Canada is too weak to sustain local industries, job loss and recession will ensue leading to Stagflation. Without jobs, it will be harder to attract migrants. 

So what you’re saying is that somewhat the reverse of the US….  Who has the domestic consumption but the lack of infrastructure , industry and supply chain to fill the demand without trade.

Canada may see a recession and stagflation, same as the US will if both economies keep tracking in the same direction.  

DST bullsh*t from Trump is nothing more than his typical so-called negotiating style.  The incompetent child and his equally inept trade negotiators forgot, or didn’t even know this was slated to come into effect.  Absolutely comical that this band of idi)ts is negotiating for the largest economy on the planet.  Embarrassing is probably a more fitting word….

[paxamericana]

14 minutes ago, LinkSoul60 said:

So what you’re saying is that somewhat the reverse of the US….  Who has the domestic consumption but the lack of infrastructure , industry and supply chain to fill the demand without trade.

No this has to do with immigration law. The imported labor is much cheaper hence these companies rely on using Canada as a immigration hub while skirting US law. The US has talent and infrastructure to support those buisnesses. These companies are just trying to lower their cost by not hiring US talent. If anything, they're building a loopholel for themselves and Canada through counter tariff measure is closing the loophole. 

[LinkSoul60]

1 hour ago, paxamericana said:

No this has to do with immigration law. The imported labor is much cheaper hence these companies rely on using Canada as a immigration hub while skirting US law. The US has talent and infrastructure to support those buisnesses. These companies are just trying to lower their cost by not hiring US talent. If anything, they're building a loopholel for themselves and Canada through counter tariff measure is closing the loophole. 

Not sure which companies or sectors you're referring to but nobody is using Canada as an immigration hub.  The US has enough immigrants for companies to support those low paying jobs and has the H-1B visa for non-immigrants in specialty occupations. Tariffs are simply a tax imposed by one country to another for goods and services imported....and has nothing to do with immigration laws.

[paxamericana]

1 hour ago, LinkSoul60 said:

Not sure which companies or sectors you're referring to but nobody is using Canada as an immigration hub.  The US has enough immigrants for companies to support those low paying jobs and has the H-1B visa for non-immigrants in specialty occupations. Tariffs are simply a tax imposed by one country to another for goods and services imported....and has nothing to do with immigration laws.

It absolutely has everything to do with immigration law as Microsoft lost a lawsuit against providing employee benefit to their H1B employees and its subcontractors. Don’t forget the main underlying theme, cheaper labor cost. Digital services can be done inside there United States unless there are compelling reasons to do so in Canada, which I would argue is cost savings. This is where your universal healthcare system is being leveraged by the US companies.

Edited 6 hours ago by paxamericana

[Aristides]

21 hours ago, paxamericana said:

https://www.cnn.com/2025/06/27/business/trump-breaks-off-canada-trade-talks

Due to Canadian tax on US digital services ;largely affecting Meta, Apple, Google, Amazon and Microsoft, Trump will now increase tarriff on all Canadian exports to the US. 

Truely a historic turn of event for Canada. This will further contribute to brain drain and siphoning of young talents and entruepenuer into the United States due to trade barriers. 

The domestic consumption in Canada is too weak to sustain local industries, job loss and recession will ensue leading to Stagflation. Without jobs, it will be harder to attract migrants. 

This  is about US companies running advertising in Canada paid for by Canadian companies and not paying tax on the income. Europe has done the same thing.