Hopefully CTH readers have followed this story close enough to be able to predict where it ends. The White House has released an official and scathing press release outlining the lengthy and long-term issues with Canada and trade disputes.

WHITE HOUSE – Canada has been ripping off the United States for decades — and President Donald J. Trump is done letting them get away with it. Last week, the U.S. offered Canada the most preferential market access of any country on Earth, with deep cuts on steel, aluminum, autos, lumber, and more. Instead of partnership, Canada chose unreasonable demands, walk-backs, and flat-out rejection.

The record of Canadian abuse is clear and deliberate:

• FACT: Canada is joined only by the People’s Republic of China in choosing retaliation over negotiation. Their continued discriminatory treatment of U.S. commerce has burdened American workers, farmers, and businesses.
• FACT: Canada alone imposed discriminatory 25% tariffs and company-specific quotas on U.S. motor vehicles — measures applied to no other country. As a result, U.S. vehicle exports to Canada crashed 22% over the last year.
• FACT: Canada banned American wine, beer, and spirits in nearly every province and territory — while other countries have faced no such restrictions. As a result, U.S. alcohol exports to Canada collapsed 81% in a single year.
• FACT: Canada locks out U.S. dairy with tariff-rate quotas far more restrictive than those given to Europe, plus over-quota tariffs of nearly 300% — rates so extreme they function as a near-total ban and rank among the highest agricultural tariffs in the developed world.

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Vice President JD Vance gave a speech today from his hometown in Middletown, Ohio.  The theme of the speech was about U.S. jobs, economic nationalism and the rebuilding of American industrial strength.

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This video from the Promethean Action PAC wraps in a few background details that most readers and followers of the U.S-Canada trade relationship will likely find interesting.

Susan Kokinda argues the dispute is larger than USMCA negotiations, portraying Canada as an “outlaw” that enables transshipment “smuggling,” fails to enforce forced-labor bans, and facilitates “snow-washing” through weak corporate transparency and money laundering documented in British Columbia’s Cullen Commission.

She contrasts U.S. Energy Secretary Chris Wright’s pro-development case for oil and gas as civilizational progress with Canadian Minister Mélanie Joly’s Chatham House speech promoting “geo-industrialization” and a Mark Carney-aligned “middle powers” strategy against U.S. and China “hegemons.” Kokinda highlights a House of Commons petition led by Green Party leader Elizabeth May to declare U.S. Ambassador Pete Hoekstra persona non grata, and notes Joly’s outreach to U.S. lawmakers and cities during the trade fight.  WATCH:

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Treasury Secretary Scott Bessent gets it.  When asked about the Strait of Hormuz, Bessent notes that yes, things will likely never return to the way they were before; however, there is a distinction that must be applied.

Even if Iran completely acquiesced to all of the most stringent terms and conditions requested by President Trump, they will never again recapture the position they held with the Strait of Hormuz as a chokepoint.

Capital markets respond to risk in the medium and long term; risks are always mitigated.  With the Strait now identified as a strategic risk, the emphasis will be on forever neutralizing that risk and avoiding the issue in the future.  As a consequence, Iran’s strongest point of leverage is disappearing now and will continue to disappear.  WATCH (prompted):

As further explained by James Thorne on X: “By repeatedly signaling its willingness to disrupt the Strait of Hormuz, Tehran hasn’t strengthened its hand, it has accelerated the market’s exit. Capital does not tolerate chokepoints; it routes around them.

Saudi Arabia is expanding its East-West pipeline. The UAE has already built out Fujairah as a bypass. Iraq is revisiting overland export corridors. Every marginal dollar now flows toward redundancy, not reliance. What was once a geopolitical lever is being engineered into irrelevance. Bessent gets it: markets don’t absorb coercion; they arbitrage it away.

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What we can take away from the Institute for Supply Management (ISM) index on manufacturing [Data Here]: overall, the U.S. manufacturing sector is continuing to expand significantly.  The current index of 55.6 percent in July is 2.3 percentage points above the June figure and the highest reading since May 2022 (55.9 percent), when we were trying to recover from the COVID-19 shutdowns and supply chain problems.

PMI – The overall economy continued in expansion for the 21st month in a row. (A Manufacturing PMI^® above 47.5 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index expanded for the seventh consecutive month after four straight readings in contraction, registering 56.7 percent, up 0.7 percentage point compared to June’s figure of 56 percent.

The July reading of the Production Index (58.5 percent) is 6.3 percentage points higher than the 52.2 percent recorded in June and the highest figure since November 2021 (60.5 percent). The Prices Index remained in expansion (or ‘increasing’ territory), registering 71.1 percent, a 1.9-percentage point decrease from June’s reading of 73 percent. The Backlog of Orders Index registered 55 percent, up 4.5 percentage points compared to the 50.5 percent recorded in June.

The Employment Index reading of 52.8 percent is up 3.1 percentage points from June’s figure of 49.7 percent, putting the index in expansion territory for the first time in 33 months.” (source)

All that data and a couple of bucks will buy you a cup of coffee, but here’s what it means in common speak.

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During an episode of Day Break, Steve Gruber holds an extensive interview with President Trump for a wide-ranging conversation on election integrity, American manufacturing, national security, faith, energy, and the future of the nation.

In this interview, President Trump discusses:

• -The fight to secure America’s elections and the push for voter ID
• -Restoring confidence in the electoral process
• -The rise of socialist and DSA-backed candidates and what it could mean for America’s future
• -Bringing manufacturing jobs back to the United States
• -His recent visit to Michigan’s GM Proving Ground and the resurgence of American industry
• -Strengthening domestic supply chains through rare earth production and projects like REAlloy
• -Making America the world’s leading energy producer
• -Anthony Fauci’s refusal to answer questions before Congress
• -The creation of the U.S. Space Force and plans for the Golden Dome missile defense system
• -National security challenges facing the Western Hemisphere
• -Faith in America, the White House Faith Office, and protecting religious liberty

The conversation also explores why President Trump’s message continues to resonate with working families, blue-collar communities, and voters across Michigan and what many call “Forgotten America.”

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It has been said that all wars are “bankers wars,” however, against the modern era of inverted fascism where corporations tell the govt what policies take priority, the more accurate truism ‘is all wars being controlled by money’, not necessarily banks.

The European Commission has constructed a very special kind of proactive financing for Ukraine that doesn’t require them to give their own €uros to the historically corrupt country.  Partly because the EU doesn’t have their own money, and partly because everything the EU does in the sphere of finance is always a false construct, what the EU put together was a financial system based on sanctioned, confiscated (ie stolen) Russian sovereign wealth funds {citation}.

As part of the sanction regime, the EU and western NATO alliance seized roughly €250 billion, $300 billion USD, in Russian sovereign wealth assets.  As long as the USA was financing the Ukraine government and war effort, those funds sat on the sidelines undiscussed.  However, once the USA stopped writing checks to Ukraine an alternate finance system was needed.

What the EU (Ursula von der Leyen) put together was a finance package using the confiscated $300 billion in the Russian sovereign wealth fund as collateral for loans to Ukraine.  The EU would send the money to Ukraine as a loan that did not have a payback mechanism. Instead, the thinking goes that when the negotiations for a ceasefire take place, Russia would be forced to give up the confiscated $300 billion as part of a reparations package to Ukraine.

Ukraine doesn’t have to pay back the loans because Russia will be forced to give up their sovereign wealth fund, and those funds will repay the loans.  That’s the way the EU financing of Ukraine is set up. {SOURCE}  The EU isn’t giving Ukraine EU money; the EU is giving Ukraine the Russian wealth fund money.

Now, immediately you can see a few problems.

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Earlier today President Trump held a nuclear energy innovation event in the White House and highlighted the next phase of U.S. energy development via small critical nuclear reactors. The media questions begin at 8:44 of the video below.

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The Canadian government has cancelled their participation in a joint U.S-Canada ribbon cutting ceremony because President Trump has hurt their feelings with a new tariff announcement.

It is the official position of the Canadian government not to join in any collaborative celebration.  This comes on the heels of the Premier of British Columbia, David Eby, asking his staff to revoke the Canada statement celebrating America’s 250th Independence Day.  Take that Trump! {{harrumph}}

CANADA – A planned joint ceremony on Friday between the U.S. and Canada marking the opening of the Gordie Howe International Bridge has been canceled after President Trump announced a 50 percent tariff on certain Canadian imports, including alcohol and dairy.

“In light of trade action threatened by the United States earlier this week, it would be inappropriate to proceed with a celebratory event between the two countries,” Jenna Ghassabeh, a spokesperson for Canadian Infrastructure Minister Gregor Robertson, said in a statement to the Associated Press.

“We remain committed to opening the bridge on July 27th, and to celebrating this milestone among Canadians on July 24th,” she continued. (read more)

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Ontario Premier Doug Ford has a message to President Trump and to all Americans. Premier Ford promises to dismantle the U.S. economy if President Trump continues to threaten tariffs and trade sanctions.

Considering the economy of the USA is ten-times larger than Canada, that’s quite a threat from Premier Doug Ford. WATCH:  

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Personally, I think all this back-and-forth banter is no longer worth the surface effort.  It would be much easier, and now affirmed as constitutionally appropriate by the Supreme Court, if President Trump just executed a full trade embargo against all Canadian goods for a period of 60-days.

Perhaps that way Canada will recognize just how vulnerable they are.  Perhaps not, but it’s worth the effort.  Just ban all imports and exports for 60-days and let’s see what happens.

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