Here is a real-world example of how Canada's retaliatory tariffs actually work.
We are a Canadian manufacturer employing 40+ people in Ontario.
We buy steel drums from an American manufacturer in Ohio.
We bring the EMPTY drums into Canada.
We fill those drums in Ontario with products WE MANUFACTURE IN CANADA.
Then we ship the finished Canadian product back to customers in the United States.
Simple enough.
Except Canada has now imposed a 50% retaliatory tariff on U.S.-made steel drums under tariff code 7310.10.00.
So let me understand the strategy.
Who exactly are we trying to hurt?
The American steel company already sold the steel.
The American drum manufacturer already sold the drum.
Our American customer still needs the finished product.
The company writing the cheque for Canada's 50% tariff is us — the Canadian manufacturer employing Canadian workers.
And before someone says, "Buy Canadian" — we have a Canadian drum supplier in Burlington. They're busy and their lead times are several weeks longer than our Ohio supplier.
And here's the irony:
The Canadian drum plant is itself owned by an American company.
So we are potentially adding enormous cost and working-capital requirements to a Canadian manufacturer in an attempt to punish the United States.
There may be duty-drawback relief available because we're re-exporting these drums as part of our finished product — and we're investigating that now.
But think about the administrative absurdity we've created:
Import an American drum → Canada charges a 50% retaliatory tariff → Canadian workers fill it with Canadian-manufactured product → ship it back to America → Canadian company applies to recover the tariff.
That's not industrial policy.
That's friction.
If the objective is to protect and grow Canadian manufacturing, we need to start asking a very basic question before imposing retaliatory tariffs:
Who actually writes the cheque?
@ronmortgageguy@StephenPunwasi
This is your Net on $1M salary:
Gross income: $1,000,000
Federal Tax: $305,000
Provincial Tax: $191,000
CPP Contributions: $4,055.50
EI Premiums: $1,036.80
Ontario Health Premium: $900
Total Deductions: $501,992.30
Net Pay: $498,007.70
Welcome to Ontario, Canada 🇨🇦
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