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’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.
“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.