Let's talk about Trump warning Canada and the UK that trade with China is very dangerous.... - Belle of the Ranch
Well, howdy there Internet people. It's Belle again. So, today we're going to talk about Trump warning Canada and the UK that trade with China is very dangerous.
Trump's rhetoric, erratic trade policies, statements about territorial claims, and seemingly never-ending stream of slights or outright insults directed at our allies is doing what all the economists said it would do, push allies toward China. Trump seems genuinely surprised by the developments.
Canada was first to break with the US publicly and pursue more trade with China. Well, now British Prime Minister Starmer traveled to China and reportedly obtained visa-free travel to China for UK citizens, better market access, lower tariffs, and some investment deals. While in Beijing, Starmer said, "We warmly engaged and made some real progress actually because the UK has got a huge amount to offer." He said the UK-China trade relations were in a good place and that the Chinese government had provided just the level of engagement that we hoped for.
It's important to remember that Canada and the UK aren't just trading partners of the US. They're military allies. How did Trump respond to the news? Well, when asked about the British visit, he said, well, it's very dangerous for them to do that.
Then, he seemed to acknowledge the trend of countries looking to increase their economic stability, so they don't have to rely on the United States and added, even more dangerous, I think, for Canada. Canada is not doing well. They're doing very poorly. and you can't look at China as the answer.
Then he bizarrely said that he was friends with the Chinese president and added, "The first thing they're going to do is say you're not allowed to play ice hockey anymore. Canada is not going to like that."
I'm going to be honest, I can't even guess what he was trying to convey with that. Trump's stance on Canada working deals with China has gone from, "It's a good thing for him to sign a trade deal. If you can get a deal with China, you should do that" to promising tariffs if Canada moves forward with a deal to now, I don't know, expanding the NHL.
Starmer seemed to anticipate most of Trump's response. And even before the trip, which the US was notified of in advance, he sought to calm nerves in DC. During an interview before the trip, he said, "We've got very close relations with the US. Of course, we want to, and we will maintain that business alongside security and defense."
It's worth remembering that Trump is planning on going to China to talk trade in April. None of this should be a surprise except for the hockey thing. Economists said this was going to be the result. Markets hate uncertainty and erratic international trade policies don't really bring people to the table seriously. That uncertainty sends them to another table. That's what's happening. Right now, it's relatively small stuff, but over time it grows. And when countries share economic goals, their foreign policy goals start to align. Then their military goals align.
Anyway, it's just a thought. Y'all have a good day.