CTH continues to get considerable questioning about how the U.S-Canada fracture will take place, what it means for the Canadian dollar (CAD) and when the issues can be expected to apex. It appears that part of the reasoned disconnect people are struggling with is directly related to the messaging from the Canadian government in combination with the financial media.
In short, despite the increased trade friction, a decoupling of the U.S. economy from the Canadian economy just seems unfathomable to most observers. The main question we receive is ‘when will things happen‘? Meaning when will financial markets react? The most obvious answer to that question is, when the USA announces the termination of the USMCA (CUSMA) trilateral.
If you hold the opinion that all of these trade friction points will be resolved within the margins of the USMCA, then it is correct to predict that no significant material impact will be felt north of the border. If, however, you hold the opinion that the USMCA will be terminated because the core of the issues between the two countries are irreconcilable, then the material impact will come as soon as that announcement is made.
Alberta Premier Danielle Smith, the only Canadian government official to attend President Trump’s inauguration, appears on Fox Business. Like all other Canadian officials, she cannot contemplate the elimination of CUSMA/NAFTA. Such an outcome is simply beyond her comprehension. WATCH:
In previous interviews and broadcasts, Mrs Smith claimed if Canada was to introduce an export tax the USA would respond accordingly. This is not accurate. The U.S. has no mechanism to place a tax on exports.
Additionally, inside Canada the structure is provincial. That means each province taxes each other province for goods and services. In the USA we have state sales taxes, but those taxes are applied across all goods sold to/inside an individual state. Ex. Florida does not tax Texas. Florida has one sales tax for all goods regardless of their origin.
Does anybody actually listen to her when she talks about the pre-existing "Canadian Tariffs" on U.S. industrial goods?
Those pre-existing Canadian tariffs against America are part of the original issue. But she skims right over that origin. https://t.co/mTSyynk0iT
— TheLastRefuge (@TheLastRefuge2) August 28, 2026
If I recall correctly some states do ask you to self report untaxed out of state sales for taxation. I wonder how many people actually report it …
Pretty much every state now. That’s what’s called “use tax.”
“Sales tax” refers to a merchant’s requirement to collect the tax on sales because they have a nexus (some presence) in that state. But if you buy from a company/merchant with no nexus in your state, you are still liable for use tax. I’m not 100% sure that’s in every state — obviously not in those few states that have no sales tax.
In my state you have the option of tracking your use tax or just paying some calculation they come with when you pay your state income tax. We track it and it’s always been lower than the calculation (of course).
I suspect everyone is paying various and many taxes for what we have absolutely no clue….I’m amazed anyone has any money left.
#taxationistheft
Yes they do. Sometimes it’s called a use tax.
Not a lot of people are going to self report something unless the government has the information to cross check. However, they could be be in trouble if he IRS was auditing them.
This issue is becoming a moot point as automation increases and states require collection of sales tax by the merchants for items bought by out of state purchasers but shipped into the state of the purchaser.
“This issue is becoming a moot point as automation increases and states require collection of sales tax by the merchants for items bought by out of state purchasers but shipped into the state of the purchaser.”
I believe that is unconstitutional, as it is an impediment to free trade between the states. States are free to collect tax on sales occurring within their physical borders, if they choose to do so.
I’m confused. Sales tax is at the state and lower levels of government. Why would the IRS be involved at all?
Your state and local typically use your fed filing to determine your taxable income based on their rules.
Normally, if I buy an item online, my state’s sales tax is added on checkout.
I’m guessing Trump triggers USMCA withdrawal after the US midterms. I don’t see him doing it before that point, given how disruptive it’s likely to be. That said, thank God for the commerce clause (that’s something I never thought I’d say). Without that, we’d have states taxing states just like Canada. The USA founders were really quite brilliant and full of foresight.
Yes, thank God the Republic was set up so that interstate commerce was tax free. Hope we can keep it.
Thank God the Republic was set up by some intelligent people. Not like the low intelligence and low moral people we tend to have in Government now.
“Such an outcome is simply beyond her comprehension.”
At least 70% of Canadians are going to have a very rude awakening, thanks in large to the steady diet of government propaganda they have been ingesting for years.
The US imports 150,000 barrels of oil per day from Venezuela. On the other hand…
Key Context & Breakdown-
Total Canadian Crude to the U.S.: Overall, the U.S. imports around 3.9 to 4.1 million barrels per day of crude oil from Canada.
Alberta’s Share: Alberta produces the vast majority of Canadian crude exports. It accounts for ~87% of all Canadian crude exported to the United States.
U.S. Reliance: Oil from Alberta makes up more than half of all total U.S. crude oil imports from foreign suppliers worldwide. Most of this heavy crude is delivered via pipelines directly to refineries in the U.S. Midwest (PADD 2) and the Gulf Coast (PADD 3), which are specifically configured to process it. “
Just another libtard. Alberta watch out she is a snake.
That lady is a real piece of work!
I lost count of the number of lies she told in that 3 minute clip-and all of it with a straight face and calm demeanor.
She’s a sociopath.
May God bless the Canadian people, and may He save them from the sociopaths who are destroying their country.
Ms Smith I trust as much as Varney.
Not one bit
She’s insisting on holding the vote on October 19th, it was already a very big deal and now this situation has made it that much bigger of a deal and far more divisive.
The separators are that much more fueled by all this and then the stay people are that much more scared and want to stay.
So this situation seems to have driven people deeper into the corner they were already in.
And interesting point the Separators have that I’ve seen nothing about in our media is that they want to separate and then bypass Ottawa and hammer out their own deal between Alberta and the US.. I would think that Team Trump that loves deal making would be open to that idea if they wanted to do that.
https://calgaryherald.com/news/separatists-say-trade-war-bolsters-calls-for-independence
She’d better wake up and quickly…
If Carney follows through with his dream of glory plan to join the EU (I’m still scratching my head over that one) all of Canada will be paying heftier taxes…on everything.
I know Canadians despise President Trump…but as is said, better the “devil” you know.
Sometimes reality has to hit “good and hard” before the truth can no longer be avoided.
And here it comes.
So Canada Tries to join the EU and then Russia overtakes the EU? How does that work out?
Not well.
Who would want the fast disintegrating EU?
Russia certainly doesn’t and has said so.
(Pretty sure Carney sees himself as the future King of the World.)
Most of the Canucks are Liberals, so they love paying more taxes. Somebody has to support all those unemployable immigrants.
She sounds like an intelligent and lucid person and yet she is so confused. Why is it so hard to understand that the trans-shipment of Chinese products is a hard no for the US and that Carney values his relationship with the CCP, more than he values his relationship with the USA? Frankly, Carny also values his relationships with both the City of London and the EU more than the USA, or he wouldn’t be trying to meddle in the USA’s mid-term elections.
Also saw a Canadian streamer report that Smarmey’s retaliatory tariffs on Sept. 9th will target swing states, right before the midterms. Tariff on lobsters, for instance, tailored to hit Mainers where it hurts. Curious if there’s more substantial info on this.
If the law of supply and demand holds true, lobster should get significantly cheaper in Maine, on Sept 10. I don’t know fishing boat economics, so I cannot speak to how that will affect the industry.
Headed to Maine soon. Don’t worry on the lobstah thing. Will be eating a fair share. There won’t be sufficient quantities left to ship to canadistan… 😎
Follow the price and volume chart on the ETF symbol EWC.
Everything will be reduced to that chart. If it’s breaking down, it’s the beginning. If it’s holding up nothing else matters. Opinions don’t matter. Price and volume does.
The issue of structure reminds me of a joke a Canadian once told me.
A Frenchman, Italian, German and Canadian student were all set a project where they were to write about elephants.After a week all had handed in their assignments.
The Frenchman had written about the culinary opportunities the elephant presented, the Italian had written about the sex life of the elephant, whilst the German had written a precise description of the elephant’s life cycle, and the Canadian? They handed in an essay titled, ‘The elephant, a federal or provincial issue?’
Peg you were drinking right? Eeekk! Sounds like a Canuck joke though. 🙃
Loonie is going to test the lower limits against the dollar and I’ll be very surprised if the indebted UK or EU will provide much support apart from performative hot air. The UK Treasury won’t even provide our military with the funds to meet NATO obligations.