this post was submitted on 05 Mar 2025
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I think you're maybe misunderstanding the direction of the tarrifs costs?
The tarrifs cost American importers regardless of our counter tarrifs. For an example, the article pointed to, Target which
Doesn't matter what counter tarrifs Mexico puts in place, produce from Mexico will be more expensive in America. Counter tarrifs just make things more expensive in our own country and hopefully dissuade people from buying them.
The markets aren't roiling because of reduced access to Canadian markets, it's that the stuff in their own products (like say, car parts made in Canada) overnight became 25% more expensive. (I would also be surprised if we tarrifed much in our shared industries like auto production as it'll be hard enough to keep those factories here without making them even more expensive.)
That's not to say what we do is irrelevant, we should absolutely boycott and do whatever we can to make the markets worse but it's good to do so with clear eyes.
No I'm well aware of how tariffs work. The thing is, given how tightly coupled our economies are, nearly all major US manufacturing is heavily dependent on Canadian exports. Our auto industry alone has a single vehicle traversing the border multiple times. When we impose a counter-tariff, that hurts US industry considerably. Couple this, with the lost good will between the US and it's biggest trading partner by far, and you've got a a massive devaluation of US stock prices due to diversification and boycotts alone.
In other words, the dude's not wrong that the market hit is massive, he's just got blinders on around the cause.