this post was submitted on 05 Mar 2025
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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.