Canada Prime Minister Mark Carney delivers a speech to the nation notifying the Canadian people that the era of an economic and military collaborative relationship between the United States and Canada is over.

As the majority of Canadians cheer, the Prime Minister said that Canada as a free independent and sovereign nation will now embrace its connections to the United Kingdon and European Union and seek to replace their national dependency on the United States by severing ties in North America and entering a new era of close relations with Great Britain and Europe.

When questioned if Canada would join the European Union, a seemingly natural fit for the ideologically aligned country, Prime Minister Carney said, “nothing is off the table.”   In a rather remarkable end to the confrontation, the Carney says the economic and military ties between the USA and Canada are officially declared severed.  WATCH:

“We as Canadians, have agency”… What does that even mean?

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President Trump asked Prime Minister Trudeau and the Canadian government to close the border to narcotraffickers and shutdown the pipeline of Chinese fentanyl.  The Canadian govt chose not to and Prime Minister Mark Carney continues the refusal.

The entire Canadian border enforcement system, agents, support personnel, the entire operation for 5,000-mile border consists of 300 people.  Not exactly a strong commitment to border security.

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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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During an executive order signing session in the White House today, President Trump announced a major change in tariffs on the auto industry.  [Full Executive Order Here]

The 25% import duty applies on top of any preexisting tariff for cars and light trucks.  The 25% tariff also applies to imported car parts.  The USMCA trade agreement between the U.S. Canada and Mexico still applies.

If the content of a car assembled in Mexico/Canada contains 50 percent component parts from the USA, the 25% tariff only applies to the final value of the imported components. In this example the tariff rate would be 12.5% of the total value.

The tariff applies to all imported cars and light trucks.  Approximately half of all cars sold in the USA are currently American made, the other half are import vehicles from mainly Mexico, Japan, South Korea, Canada and Germany.

This is a very big kick in the teeth to Germany.  Previously in a long-term strategy to avoid U.S. tariffs, German automakers invested billions in auto assembly plants in Mexico.  Ex. the BMW parts were shipped from Germany and the cars assembled in Mexico.  Now that investment is worthless as the vehicle will be taxed at a rate of 25% regardless of whether it is assembled in Germany or Mexico.

Ex.2 High end auto Mercedes currently builds SUVs in the USA in order to avoid the previous 25% tariff; however, they still build cars outside the USA and export them into the USA market.  This will likely change quickly, and Mercedes will begin building all cars and SUVs in the USA.

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Tariffs simply work. This is no longer a debatable issue, and decades of Wall Street gaslighting collapses as the outcomes of tariffs generate visible economic benefits for all Americans.

South Korea-based Hyundai and President Donald Trump announced a $20 billion investment in US on-shoring on Monday, which includes a $5 billion steel plant in Louisiana,

The $5.8 billion Louisiana facility will be the car manufacturers’ first steel manufacturing facility in the US and will produce more than 2.7 million metric tons of steel a year and create more than 1,400 jobs. It will supply steel to auto plants in Alabama and Georgia, Trump said in remarks at the White House.

The announcement at the White House included President Trump, Hyundai Chairman Euisun Chung and Louisiana Governor Jeff Landry. WATCH:

The Hyundai announcement comes as the highly anticipated April 2nd “reciprocity tariffs” are scheduled to begin against all nations.  For the EU this means an end to the 80-year-old Marshal plan of economic benefit.

Effective April 2, 2025, the U.S. will begin a process of reciprocal tariffs on imports from all nations with tariffs against U.S. products.

If a nation charges a 20% tariff on a U.S. good, in combination with a 20% non-tariff trade barrier, President Trump will calculate the financial impact and then reciprocate with a 40% tariff put on that nation’s goods being imported to the USA.

Globally, all nations are calculating how to deal with this issue.  Hyundai’s best position calculations end up with this announcement.

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Commerce Secretary Howard Lutnick appears for an extensive discussion with the All In podcast.  Secretary Lutnick has been a 30-year friend of President Trump and is currently one of the most critical members of the MAGAnomic team who are executing Trump’s agenda to Make America Great Again.

Secretary Lutnick outlines the background of what makes President Trump so effective in his position, and within the discussion Lutnick notes at the core of Donald Trump is “the most intuitive person he has ever known.”  This is a casual discussion about President Trump and how Lutnick came into the administration.  WATCH:

CHAPTERS:

(0:00) Chamath and Friedberg welcome Commerce Secretary Howard Lutnick!
(1:10) Howard describes his 30+ year relationship with President Trump and his road from business to politics
(14:44) Running Trump’s transition team, DOGE origin story, what it’s like working for Trump
(38:01) Balancing the budget and fixing GDP
(52:21) Tariff history and strategy, global trade
(1:10:34) Trump Cards, building better government software, AI thoughts
(1:22:49) Sovereign Wealth Fund strategy
(1:37:16) How his family reacted to his new role

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If you are concerned about the economics of American life, the first step is to understand the financial influences that were put into place by President Obama, then again with Obama’s team using the auspices of Joe Biden.

President Trump is rapidly untangling the tentacles of Obama’s “share the wealth” exfiltration policy, and he will achieve success on a scale most economic analysts cannot fathom.  Traditional financial media, including those who follow the influences of Wall Street are constrained by their need to retain pretenses.  However, President Trump and his economic team are very clear-eyed and focused.

We are already seeing major drops in core energy prices including gasoline.  These decreases will have downstream impacts on all consumer goods, and we will notice a significant drop in food prices in two steps.

The first will be moderate and the result of harvest one cost decreases. The second price drop will be even greater and will come as a result in major farm costs for the second harvest sequence. By Thanksgiving 2025, lowered energy prices in combination with ‘food prepared at home’ price drops will be the leading cause of a major decline in inflation.

In the background of this domestic outcome, the April 2nd tariffs will start to ripple through durable goods.  Initially, there will be waves and fluctuations as some durable goods prices increase and other durable goods prices decrease.  The more the components of the product are domestically manufactured, the more the price of the end product will drop in price.

As a result, the aggregate downward pressure (higher domestic content) will exceed the upward pressure (higher import content component goods) and overall prices for durable goods will decline.  This deflationary pressure point will increase over time as the end of the Marshal Plan starts to return dollars to the United States.

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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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Commerce Secretary Howard Lutnick appears on CBS News to outline how the MAGAnomic tariff program immediately creates positive outcomes when President Trump identifies the specific targets.

As Lutnick appropriately notes, the EU has received one-way tariff benefit since the creation of the Marshal Plan in 1945.  President Trump is on track to finally end this exfiltration of American wealth.  Lutnick cuts through the nonsense and delivers a very non-pretending reality as he outlines how Canada doesn’t stop fentanyl, and Mexico doesn’t stop migration caravans.

This is an excellent explanatory outline of how President Trump paints the target, then Commerce Secretary Lutnick supports the targeting, and how foreign nations immediately respond to change their approach. WATCH:

As we notice today, for the first time since last year the Consumer Price Index now shows inflation slowing rapidly [CPI DATA HERE] as basic essential prices on energy and gasoline are dropping quickly and all downstream products start dropping in sequence.

Here is our current status after one month: – mortgage rates are down – egg prices are down – gas prices are down – overall inflation dropping – illegal immigration stopped at the border – wages going up – foreign aid shut down – woke initiatives being removed – massive manufacturing investments ongoing.

Hey, it’s winning folks, and it has only just begun.  Lutnick is absolutely correct.

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Commerce Secretary Howard Lutnick, another deliberate and happy warrior, appears on Face the Nation to deconstruct the narratives presented by NBC and Kirsten Welker.

Starting with the Mexico and Canada tariff issues, Welker incorrectly frames the current issue around economics. Secretary Lutnick presents the issue of the current Mex/Can confrontation for what President Trump has prioritized, the issue of illegal fentanyl smuggling across the border.

100,000+ Americans are killed each year with the intentional and purposeful transportation of Chinese drugs through the U.S. southern border of Mexico and the U.S northern border with Canada.  Both nations could, if they wanted, crack down on the illegal and dangerous drug trade; neither has prioritized the problem. Again, 100,000+ Americans are killed each year.  Think about it.  WATCH: 

“This is the way you run the country,” Lutnick said on NBC News’s “Meet the Press” with Kristen Welker. “You shut the border. You get our neighbors to do their job. It’s not only us who has to do their job. Why are our neighbors, who live and breathe off our economy, not taking care of America?”

“You have to remember this is a drug-related issue,” Lutnick said. “You’ve got fentanyl pouring into this country, killing 75,000 Americans, autopsied. And the president, you know, thinks it’s many, many more, multiples more.”

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Facing the potential for tariffs on Mexican assembled autos, Honda has cancelled plans to invest in a new auto factory in Guanajuato, Mexico, beginning in November 2027.  Instead, the car company will retool the Civic auto production facility in Greensburg, Indiana, keeping jobs in the USA.

TOKYO, March 3 (Reuters) – Honda has decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, according to three people familiar with the matter.

The change underscores how manufacturers are scrambling to adapt to U.S. President Donald Trump’s proposed 25% tariffs on goods from Mexico and Canada. While several automakers have expressed concerns about the levies, Honda’s move is the first concrete measure by a major Japanese car company.

Japan’s second-largest automaker had initially planned to manufacture the next-generation Civic in Guanajuato, Mexico, according to the three people. Production was slated to start from November 2027, according to one of the people.  Mexico was chosen because rising costs were making it tough to produce the car in Indiana and Canada, one of them said.

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