Donald Trump announces tariffs on Canadian Lumber

[Belize]

It's the height of irony to have the guy who wants protectionist measures in his own country to bitch about them in other countries. Other countries don't exist to serve the US, hopefully Trump will realize that....eventually.

Hahahahahahaha.

Oh... You're still holding on to hope... I-I'm sorry to tell you this but...

[xChurch]

Hahahahahahaha.

Oh... You're still holding on to hope... I-I'm sorry to tell you this but...

Nah, it's more about hoping the people around him eventually can explain to him why it's dumb. He learns, it just takes someone he respects to actually get him to change and even then I'd imagine it's like pulling teeth.

[Enthusiastic Steward]

He learns, it just takes someone he respects to actually get him to change and even then I'd imagine it's like pulling teeth.

Given how quickly and routinely he flip-flops on just about everything, I can't imagine its that painful.

[fengosa]

When Trump announced Monday that effective immediately his administration would be imposing tariffs of up to 24% on softwood lumber from Canada, it was nothing more than the rerun of a very old puppet show.

We have been here before so often that I suspect there is a computer bank in the basement of the U.S. State department – one of those floor to ceiling models installed in the ‘70s with tape drives that spin and whir and rows of lights that blink randomly – that contains a template entitled “Imposition of Penalties on Canadian Softwood.”

Since the reign of Trudeau the First, the Americans have argued our provincial governments indirectly subsidize Canadian lumber companies by charging too-low fees to cut down trees on Crown land.

Five times since 1982, the U.S administration, no matter of the party in power, has slapped punitive tariffs on our lumber. Each time the dispute has gone to international trade arbitrators who have deemed our “stumpage” fees to be fair.

The same will happen this time, but not before a few years of tariffs have been charged. The Trump administration probably knows this, but it needed a quick and easy win against a friendly country that it could count on to fight back civilly. (And a country that is so taken for granted in Washington D.C. that it has few legislative defenders.)

Trump, of course, also threatened some upcoming action against Canadian dairy products.

This is the important part of the article. The basics of it is that Canadian lumber is cost competitive because it is grown on public rather than private owned land as though private property is necessary to grow lumber. This is about as stupid as Canada taxing oranges from Florida because they enjoy the benefit of growing their fruit in warm weather.

In the meanwhile the tariffs will increase the cost of building a home in the US by approximately $1300. Most of which will be sent back to Canada once the tribunal reaches it's usual conclusion.

[MonsieuRoberts]

How did you escape my ignore list?

[fengosa]

It started over milk far as I know.

Funny thing, according the the US department of Agriculture poor performance in the US dairy sector is due to overproduction in the US and world market. Canada itself is does not overproduce milk and does import milk

http://www.cbc.ca/news/politics/cana...nsin-1.4075002

[Manabomb]

There's a lot more behind this then just Trump wanting to be a tough guy winner.

His trade representative. The one that just passed the Senate Finance Committee with an unanimous vote requires a waiver. A waiver that needs Democratic voters.

Ron Wyden Democratc Senator of Oregon is the Ranking of the Senate Finance Committee asked Trump's trade representative choice to put imports on Canadian softwood. Wyden is a key player in the confirmation process and getting the waiver.

So Trump greased the wheels by giving Wyden that tariff that he wanted in exchange for a voter on the Trade Representative. So the trade representative will get his vote, waiver and Wyden gets what he wants.

Politics 101. Chuck Schumer also approves.

http://www.washingtonexaminer.com/sc...rticle/2621194

Honestly? Canadian lumber destroyed Oregon logging. It's good to see someone giving a fuck about it.

[minteK917]

Honestly? Canadian lumber destroyed Oregon logging. It's good to see someone giving a fuck about it.

You guys are just not competitve. Why is protectionism only k when you do it? Even if Canada was banned from your market completely your guys cant even meet demands.

[Aggrophobic]

How did you escape my ignore list?

He has a few accounts.

[Independent voter]

One dollar Canadian will buy you 75 cents American.

That's what's causing problems. Say I'm building a house and I buy $1,000 worth of lumber. Well if I bought Canadian lumber I could buy that for only $750 dollars, it's like fire sale prices.

The EU got rid of this problem by going to one currency, unfortunately for us we never did that.

[Noradin]

One dollar Canadian will buy you 75 cents American.

That's what's causing problems. Say I'm building a house and I buy $1,000 worth of lumber. Well if I bought Canadian lumber I could buy that for only $750 dollars, it's like fire sale prices.

The EU got rid of this problem by going to one currency, unfortunately for us we never did that.

That is not how it works xD

[Techno-Druid]

Plenty of other states get blamed for various things. Why should the 51st state be any different?

Shhhh...we don't want them to know...

[Zoibert the Bear]

What's the OP on about?

Canada is an amazing place. We're gonna be fine.

Haha, you keep being yourself.

[Rasulis]

This is the important part of the article. The basics of it is that Canadian lumber is cost competitive because it is grown on public rather than private owned land as though private property is necessary to grow lumber. This is about as stupid as Canada taxing oranges from Florida because they enjoy the benefit of growing their fruit in warm weather.

In the meanwhile the tariffs will increase the cost of building a home in the US by approximately $1300. Most of which will be sent back to Canada once the tribunal reaches it's usual conclusion.

That estimate seems a bit low. Lumber in the western states usually account for 20 - 30% of construction cost. So I would estimate the increase in construction cost from the tariff to around 4 - 6%. That combined with anticipated increase in the cost of asphalt and steel, already record high cost of concrete and aggregate, shortage of qualified construction worker will drive the cost of new construction in 2017 through 2020.

[Deleted]

One dollar Canadian will buy you 75 cents American.

That's what's causing problems. Say I'm building a house and I buy $1,000 worth of lumber. Well if I bought Canadian lumber I could buy that for only $750 dollars, it's like fire sale prices.

The EU got rid of this problem by going to one currency, unfortunately for us we never did that.

No, plenty of EU countries got fucked over by this, you think Romania is equal to Germany because they have the same currency?

[Deleted]

Even with a 20% import tariff, our softwood lumber still comes out cheaper due to our low dollar. Trump would only ever have a fucking point IF our dollar was at parity, and even then we'd still only be slightly cheaper. Much like the dairy issue, Trump doesn't know fuck all about economics behind the trade deals and just wants to blame us for meaningless shit. Also, we don't want American dairy because we don't want our dairy injected with growth hormones. Maybe if you idiots south of the border stopped trying to over mass produce, countries might want your products. We have more wood and better dairy products, of course it makes sense to buy from us.

He's literally getting a 20% import tax for things people will STILL buy. You call him retarded yet he can easily take 20% of your money for what is effectively free.

[wheresmywoft]

He's literally getting a 20% import tax for things people will STILL buy. You call him retarded yet he can easily take 20% of your money for what is effectively free.

Not sure why it's effectively free when it will be coming out of the pockets of Americans building/buying homes.

[cubby]

This is what Jay is like 3 beers, another 2 and he will pass out.

But he's so awesome - I love the summary of Drumpf's MAGA loses so far. It's going to be hysterical when, in just three days, Trump's First 100 Days are up, and all he has to show for it is a triggered NK and a trade war with our neighbor.

Trump is constantly redefining fuckup and setting the goal posts farther and farther forward.

We should start a pool (j/k) about what else he can fuck up before he's impeached. Maybe one of those bingo games.

- - - Updated - - -

Nah, it's more about hoping the people around him eventually can explain to him why it's dumb. He learns, it just takes someone he respects to actually get him to change and even then I'd imagine it's like pulling teeth.

It took 10 tries for him to understand a basic group concept regarding the EU. No way he's going to even begin to understand this process. Remember, he doesn't read briefing papers - he just watches cable television 6+ hours a day. Plus the tweets. And golf.

[Cyberowl]

Maybe he can offset it with the 168.000.000 the US just lost to Mexico.

[Tennis]

Haha, you keep being yourself.

You can't understand unless you've lived here.