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Auto Tariffs: German Carmakers Face Billions in Losses – German Auto Suppliers Have 330 Locations in Mexico

The atomic sledgehammer that President Trump just delivered to the German auto industry simply cannot be overemphasized.  A 25% tariff on imported cars and car parts completely negates hundreds of billions in pre-positioned investment dollars by German auto companies in Mexico.  [Executive Order Here]

[Cliff Notes Here]

To give scale to the impact on Germany, consider that German automakers currently have 330 automotive suppliers in Mexico according to information from VDA.  Audi (a subsidiary of Volkswagen) has no U.S. production sites; every Audi sold in America will be subject to a 25% tariff. The Audi brand access to the U.S. market was/is 100% dependent on Mexico, including for manufacturing the Q5 SUV, its top-selling U.S. model.

According to prior reporting from Politico, “Volkswagen’s most popular model for American consumers is the Tiguan, an SUV that is entirely manufactured in Mexico. The German automaker sold over 30,000 of the vehicles in the final quarter of last year, a nearly 50 percent year-over-year increase.”  But wait, it gets worse….

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Installed Prime Minister Mark Carney Schedules Canadian SNAP Election for April 28th

Interim installed Canadian Prime Minister Mark Carney has confirmed the snap election for Canada is scheduled for April 28, 2025.

Given that Conservative Leader Pierre Poilievre generally sealed his fate with criticism of President Trump while aligning himself with a surging patriotic-leftist movement, it is now expected that Mark Carney will win the election.

Politico has an article about the dynamic underway, and the following quotes are noteworthy:

CANADA – […] Trump has even taken credit for turning the Liberals’ fortunes around.

“Before I got involved and totally changed the election — which I don’t care about, probably, it’s our advantage, actually — but the Conservative was leading against, I call him Governor Trudeau. The conservative was leading by 35 points,” he said Friday, while exaggerating the polls.

“I think Canada is a place, like a lot of other places, if you have a good candidate, the candidate is going to work,” Trump said.

[…] Canadians have responded to Trump’s intimidation tactics with an outburst of patriotism. They are canceling spring break plans, buying made-in-Canada products, damaging Teslas and booing “The Star Spangled Banner” at professional sporting events.

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Saying Canada Can Easily Replace Economic Trade with USA, Prime Minister Mark Carney Says No Contact with Trump Administration Until Trump Shows Respect for Canada

While repeating his claim that Canada can easily replace their trade relationship with the USA by seeking larger trade relationship with other countries, specifically the EU, current interim Prime Minister Mark Carney repeats that no contact will be attempted or accepted by the Canadian government until President Donald Trump shows him respect.

This doesn’t portend favorably for U.S-Canada relations; which, to be fair, they would argue have been destroyed by President Donald Trump questioning their sovereignty.  However, here’s the kicker, what Canadians don’t seem to realize is that questioning their sovereignty is simply a strategy by President Trump to eliminate the one-sided trade relationship with Canada.

It is funny to me that Canada just can’t figure this out.

As long as Canada refuses to engage with President Trump due to a perceived lack of respect, President Donald Trump will continue to enhance his disrespect of Canada, because the absence of engagement assists his ‘total trade reset’ objective.  President Trump wants to ¹show, perhaps prove to the Canadian people, how dependent they are on their USA relationship; vis-a-vis they are already not a sovereign, economically independent nation.  WATCH:

¹Somewhere around 80% of Canadians have no concept of how their economy is functioning {GO DEEP}. Most Canadians seem to think they have some form of capitalistic system in operation and tweeking the knobs will fix things; it won’t.

So, from an American political perspective, specifically from the perspective of President Trump – as noted in all of his repeated remarks about the upcoming Canadian election – having Mark Carney carry out his policies and watching the system therein collapse, might break the borg-mindset.  It will be massively painful for Canadians when their currency hits around 0.25¢ to the US dollar.  However, that currency collapse will ¹more than eliminate any Trump tariff impact.

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Canadian Furniture Manufacturer Closes Shop and Heads to North Carolina

The example of Canadian ready-to-assemble furniture supplier Prepac is a case study in what Robert Lighthizer was discussing with Tucker Carlson yesterday.

Prepac is a furniture company that creates the pre-fab (particle board) type furniture [company here].  The company was founded and established in Canada and previously opened a second facility for manufacturing and distribution in North Carolina.

The U.S. market is their primary sales market, and facing increased uncertainty about access, tariffs and operations their best play is to close shop in Canada and move all operations to the location of their primary customer base.  Prepac is leaving Canada for North Carolina.

DELTA, British Columbia — Canadian ready-to-assemble furniture supplier Prepac has reportedly shut down its manufacturing operations in Delta, British Columbia, shifting all production to its facility in North Carolina instead.

According to Unifor, the union that represents Prepac’s workers, tariffs are to blame. More than 170 workers will be laid off.

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D’oh Canada – Canadian Prime Minister Mark Carney Promises Industrial Carbon Taxes Will Stimulate Canadian Economic Sovereignty

I do not like this Canadian Prime Minister even a little bit; however, Mark Carney getting elected to run Canada would be the greatest benefit to MAGAnomics in the United States.  The insufferable doofus is completely enthralled with the views, perspectives and ideologies of globalism.

Prime Minister Carney’s “conservative” opponent, Pierre Marcel Poilievre, is a softer, gentler, and more effeminate version of former U.S. Presidential candidate Mitt Romney: he growls through his cashmere. In short, Canada is screwed.

All of that said, the normal thinking Canadians need to get through a Romney to get to a Trump; so, perhaps it’s better if Canada just increases the speed of the downward economic slope by installing Carney.

Somewhere around 80% of Canadians have no concept of how their economy is functioning {GO DEEP}. Most Canadians seem to think they have some form of capitalistic system in operation and tweeking the knobs will fix things; it won’t.

So, from an American political perspective, having Mark Carney carry out his policies and watching the system therein collapse, might break the borg-mindset.  It will be massively painful for Canadians when their currency hits around 0.25¢ to the US dollar.  However, that currency collapse will ¹more than eliminate any Trump tariff impact.

Prime Minister Carney outlined yesterday how he will increase the industrial carbon tax in order to align with U.K and EU trade partners on the issue of climate change. Taxing carbon, he says, is the key to unlocking excellent trade agreements with other ‘global trade partners’ who can then fill the void created by disconnecting Canada from the USA economy.

No, really, he said that. Carney believes it with all his heart. These economic comments come on the heels of Mark Carney telling French President Emmanuel Macron –in public– that Canada was the most European of countries outside the EU.  WATCH THIS (prompted):

¹Here’s how it will happen. CAD = Canadian Dollar, USD = U.S Dollar

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She’s About to Find Out – Canadian Ambassador Kirsten Hillman Discusses U.S-Canada Relations

The issue of Canada becoming the 51st state arose from a conversation in Mar-a-Lago between Prime Minister Trudeau and U.S President Donald Trump.

As Secretary of State Marco Rubio outlined, Trudeau said if President Trump was to make the Canadian government pay reciprocal tariffs, open the USMCA trade agreements to force reciprocity, and/or balance economic relations on non-tariff issues, then Canada would collapse and cease to exist.

In essence, Canada cannot survive as a free and independent north American nation, without receiving all the one-way benefits from the U.S. economy. To wit, President Trump then said, if Canada cannot survive in a balanced rules environment, including putting together their own military and defenses (which it cannot), then Canada should become the 51st U.S state.

This is the first point of contention for the gender-correct qualifications of Canadian Ambassador to the U.S, Kirsten Hillman. Ambassador Hillman appears on Fox News Sunday’ to comment on U.S.-Canada relations, trade negotiations and how a federal election could impact the relationship between the two nations.

Ms. Hillman says Canadians will never give up their sovereignty. Let me repeat the non-pretending reality.  If Canada loses all of the one-way benefits it receives from its relationship with the United States, the Canadian system of government and economics collapses.

Closed and non-competitive banking and finance sectors; a small military budget that does not even reach NATO expectations; an assembly or ‘pass through’ economy that doesn’t have heavy industry but instead assembles goods from foreign nations for transport into the United States; one-way excessive tariffs on American products.  If these are ended, the lifestyle of the Canadian people immediately changes.  Hence Trudeau saying, Canada cannot exist.

At the current rate of economic conflict, the Canadian dollar will lose 50% of its value by mid-summer 2025.  This is the unavoidable reality Ms Hillman and the Canadian left-wing government will not openly discuss.

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Secretary of State Marco Rubio Outlines Steps Toward Peace in Ukraine v Russia Conflict

At the conclusion of a G7 summit in Quebec, Canada, Secretary of State Marco Rubio talks about the geopolitical realities of coming to a place where a ceasefire between Ukraine and Russia is possible.

This is a very solid outline from Marco Rubio who appears to have found his ideal career position as U.S. Secretary of State.  Rubio simply shines in this role.  This is a 20-minute press conference where Rubio weaves through the narrative engineering, and puts the bigger picture of national security, economic security, and pragmatic U.S. foreign policy into a very well-presented package.

As the Commerce Secretary Howard Lutnick interview yesterday was a ‘must watch’ segment, so too is this press conference by Secretary of State Marco Rubio.  WATCH:

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MUST WATCH INTERVIEW – Secretary Lutnick Outlines Stupidity of Canada and EU Not Logically Thinking About Tariffs

Commerce Secretary Howard Lutnick appears on Bloomberg to discuss the tariff approach of President Trump toward national security.  Economic security is national security.

Lutnick correctly points out the crazy mindset of the Canadians and Europeans not understanding and respecting the big picture objective of President Trump.  Ex. President Trump says we need steel and aluminum made in the USA, Canada responds with a tax on soccer balls.  As Lutnick says, “really, I mean, REALLY?”

This interview is must watch television that cuts directly through the pretending and silliness.  WATCH:

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In Response to Canadian Decision to Tax U.S. Electricity Consumers, President Trump Raises Tariff on Canada to 50 Percent and Pledges to Destroy Canadian Auto Industry

Pledging never to relent and to destroy President Trump, Ontario Premier Doug Ford placed a 25% tariff on all electricity delivered to the United States. After announcing the tariff Ford said, “It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford said.

President Trump has found out about the Ontario tariff and has responded, big time:

[Source]

President Trump made the following announcement:

“Based on Ontario, Canada, placing a 25% Tariff on “Electricity” coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING, March 12th.

Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous.  

I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada. If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!

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Canada’s Next Leftist Prime Minister Vows to Defeat President Trump and Win Trade War

Canadian leftists have selected Mark Carney as their replacement for Justin Trudeau, Carney will be sworn in as Prime Minister shortly and complete the remaining segment of Trudeau’s term before new Canadian elections.

The only issue on the mind of voters in Canada is which candidate will fight U.S. President Donald Trump the hardest.  Conservative leader Pierre Poilievre has vowed to fight Trump harder than Mark Carney, but the leftists in Canada are now back on the ascendency and will dispatch the pontificating Poilievere shortly.

During his acceptance speech at the Liberal Party convention, a beaming Mark Carney promised to defeat President Trump and the Americans in the upcoming trade war.  Carney noted, a sense of national pride has swept across Canada as the people unite in their hatred for everything Trump and everything American associated with him.  WATCH: 

In addition to tariffs against Canadian goods and services, U.S. President Trump has massive economic arrows in his quiver that can be deployed against the Canadian economy.  Measures including larger tariffs (tariff reciprocity), financial sanctions, restrictions on Canadian investment in the USA, revocation of visa-free border crossing, forced divestiture of American asset holdings for the Canadian people (banking reciprocity), all the way to a full-throated embargo of all goods and travel from Canada are potential.

If that sequence of events ever happened, the Canadian government led by Prime Minister Mark Carney has vowed to respond in kind to Trump with identical action blocking any/all USA products, services and American citizens from entry into Canada.  This approach would enable us to finally determine which nationalistic outlook will survive, Canada or the USA.

(Via Politico) – […] One of Carney’s first decisions will be whether or not to call a snap election in the middle of a trade war. He has identified Trump’s rolling tariff threats as an “economic and sovereign crisis.”

“The Americans want our resources, our water, our land, our country,” Carney said. “Think about it. If they succeed, they will destroy our way of life.”

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