Both Canada and Mexico said that they would step up border security to slow the flow of drugs into the United States. But this will likely do little to help the fentanyl crisis in the United States, as the causes of the demand for narcotics have not been addressed. Further, only a tiny amount is coming in from Canada. As for Mexico, the post of 10,000 Mexican National Guards on the border will have little impact, when most of the fentanyl from Mexico is actually carried in by U.S. citizens, who are able to cross the border with less scrutiny.

What remains are Trump’s 10% tariffs on all goods from China. This will have an impact on consumers, especially for goods such as cell phones, of which over 75% are imported from China. The same is true for video game consoles and toys. Even for industries where Chinese imports make up a smaller percentage of sales, this will offer an opportunity for other businesses to raise their prices.

Another impact on consumers, especially lower-income ones, is the elimination of the “de minimus” exemption, where packages with less than $800 in value don’t have to pay any tariffs. The average value of these packages is only $52 each, but they are the mainstay of discount retailers found on Amazon, Temu and Shein.

#SanJoseCA #CA #CapitalismAndEconomy #Trump #Tariffs #International #Canada #Mexico

Together Canada, China and Mexico are about 40% of the United States’ total trade, so that this is the biggest increase in tariffs since the Smoot-Hawley tariffs of 1930. Those tariffs and other countries’ responses made the worldwide economic recession even worse and were a factor in turning a bad recession into a depression. Economic studies show that Trump’s tariffs could push Canada and Mexico into recessions, while economic growth and employment would slow, and prices rise in the United States.

The immediate impact will be higher prices here in the United States. Some of it is predictable, as imported maple syrup from Canada and imported tequila from Mexico go up in price because of these taxes on imports. Other fruits and vegetables like avocados will also become more expensive, raising grocery prices even more.

Gas prices could go up, not only in the Midwest and Gulf Coast, where U.S. gasoline refineries rely on imported oil, but also in places like California that uses imported Canadian oil. Car production will be hit too, as many cars sold in the United States, including U.S. brands such as Ford and GM are either produced in Canada or Mexico and/or use parts made in our two neighboring countries.

The biggest burden of Trump’s tariffs, estimated to be about $830 per household, would be on lower income households.Lower income folks would lose about four times as much of their purchasing power as those in the highest income households. This fall in purchasing power would lower demand for goods and services and slow economic growth and job creation.

But these estimates only count the direct cost of tariffs. There are two types of indirect costs. First of all, U.S. producers could maximize their profits in the short run by raising their prices.This is what happened when Trump slapped 25% tariffs on steel in his first term – U.S. steel producers raised their prices by 22%, padding their bottom line, but causing even bigger overall price increases.

The second type of cost to Americans is retaliation by other countries. The prime minister of Canada has ordered 25% tariffs on more than a $100 billion of imports from the United States in retaliation. Mexico’s president ordered her economy minister to prepare both tariff and non-tariff responses to Trump’s tariffs. The Chinese Ministry of Commerce said that China will file a complaint with the World Trade Organization or WTO and take “countermeasures” against the United States.

China is actually better positioned than either Canada or Mexico because it has been able to diversify its trade away from the United States since Trump’s first term in office. Both Canada and Mexico send 70% or more of their exports to the United States. However, China’s biggest export market is now ASEAN, the Association of Southeast Asian Nations (Vietnam, Cambodia, Laos, Malaysia, Singapore, Philippines, Thailand, Myanmar, Brunei and Indonesia), with the European Union not far behind the United States.

While Trump has threatened to increase tariffs if any of the countries retaliate, an escalating trade war could push Canada and/or China to “go nuclear” by putting export taxes or restrictions on key exports such as oil from Canada or rare earth metals from China. In the long run, both Canada and/or Mexico could follow China’s path and try to reorient their trade to Asia, Europe and Latin America.

Trump’s tariffs are moving the United States to “decouple” its economy from the rest of the world. This response to the relative decline in U.S. economic power, from 40% of world GDP afterWorld War II to only around 15% today (as measured by “purchasing power parity,” which compares the actual prices of goods and services). However, these tariffs, along with Trump’s escalating deportations, and anti-education and anti-health moves, will just accelerate the rate of U.S. decline.

#SanJoseCA #Trump #Tariffs #Economy #China #Canada #Mexico #WTO

As a result of the strike, British Columbia shut down its ports fully, which meant locking out around 7500 other ILWU members from their jobs at the ports and was estimated to cost around $800 million Canadian dollars ($576 million U.S.) per day.

The Local 514 members have been working with no contract since 2023. Two major issues in negotiations have been the threat of automation at the ports, which costs many longshoremen their jobs, as well as fighting for a secure retirement. After negotiations failed to reach a deal that addressed their concerns, the longshoremen voted by 99% to authorize and began their strike on November 4.

Earlier in 2024, Longshoremen members on the U.S. East and Gulf coasts struck in September over similar issues – automation and for significant pay increases. That strike resulted in a partial tentative agreement that would see a $24 per hour pay increase over the length of their contract. However, the East and Gulf coast workers did not reach an agreement around automation. The pay increases are dependent on reaching an overall deal.

On November 12, the ninth day of the strike in British Columbia, the Canadian government announced it will take away the workers’ right to decide for themselves whether to work or continue the strike. It ordered the port reopened and forced both sides into binding arbitration to settle the contract. Arbitration often ends with arbitrators settling deals that are more favorable to management than what the workers would be willing to settle for.

On October 31, around 1200 Longshoremen in Montreal, Canada began a strike, and on November 11 were similarly locked out as part of a strike there. The government order also reopens those ports and forces the Montreal workers into arbitration along with the British Columbia workers.

In 2023, Canada’s other Longshoremen locals settled deals after a 13-day strike. The 13-day strike came after the previous contract had similarly been dealt with by the Canadian government, leaving longshoremen dissatisfied and ready to build towards their 2023 strike.

The ILWU says it plans to fight the order in court. What happens next remains to be seen.

#MinneapolisMN #MN #Canada #Labor #ILWU #Strike #Longshoremen

In July 2011 Joe Callahan was arrested at the Pigeon River border crossing into Canada. The crossing is at the northeastern tip of Minnesota. A backpack containing El Salvadoran passports and maps of the area were found in his trunk. At the same time, a couple from El Salvador seeking refugee status was picked up in the area. Callahan was arrested and spent the next 30 days in a Thunder Bay jail in deplorable conditions. The most serious charge was ‘human trafficking and smuggling,’ which carries a sentence of very large fines and years in jail. He was released on $75,000 bail and returned to Minneapolis while he awaited trial.

After many months, these serious charges were finally dropped. On Oct. 31, Callahan pleaded guilty to aiding and abetting under Canada’s Immigration and Protection Act. The charge of providing misleading information was dropped. However, the Crown continued to play hardball. The prosecutor asked for a three to six month prison sentence, arguing that bringing people in illegally put the country in danger. He also admitted he’d never seen such a level of support for a defendant in the courtroom.

Francis Thatcher, Callahan’s lawyer, made a powerful case that Joe is a humanitarian and that what he did was in keeping with his lifelong commitment to immigrant rights. In his statement to the court, Callahan said, “I lived in Arizona and saw how ‘coyotes’ exploited and endangered undocumented immigrants. I would never do this. I find it abhorrent.”

The judge sentenced Callahan with a $5000 fine and no prison time. She also referred to the number of Callahan’s supporters in the courtroom and the 23 letters written on his behalf.

Callahan has returned to his home. He will continue to organize against U.S.-led wars, for immigrant rights and against repression – including the 23 people under investigation by a federal grand jury in Chicago for their international solidarity work in Palestine and Colombia – for the Cuban 5, for the two Somali women from Rochester, Minnesota who have been convicted of material support and for many other political prisoners.

The favorable outcome for Callahan comes after the victory of Carlos Montes against political repression.

A victory party will be held Nov. 24 at 7:00 p.m. at 4200 Cedar Avenue in Minneapolis.

#ThunderBayON #ElSalvador #InjusticeSystem #JoeCallahan #JoeCallahanSupportCommittee #Canada

Minneapolis, MN – About 70 people packed a hall in South Minneapolis to urge that the Canadian government drop the charges against prominent Twin Cities activist Joe Callahan. Callahan, who has received widespread support, is facing several immigration related charges and is scheduled to go on trial Oct. 31 in Thunder Bay, Ontario.

A statement from the Joe Callahan Support Committee gives the following summation of the case:

“On July 31, 2011, after two Salvadoran immigrants went to Canada to apply for asylum, long-time Twin Cities activist, Joe Callahan, was arrested by Canadian police at the Pigeon River border station. Joe was alone in his car. The Canadian police used a backpack, maps and other items found in Joe’s car as the grounds for his arrest.

Joe was charged with ‘aiding and abetting an immigration without a visa,’ and ‘providing false and misleading information.’ As a result of these charges, Joe was locked up in the Thunder Bay District Jail in cramped, crowded conditions where inmates are frequently forced to sleep on the floor, as Joe did for the first several days he was there. Joe was in custody for a month, and during that time, the authorities added the charge of ‘smuggling’ or ‘human trafficking.’ This charge is much more serious and carries a maximum sentence of ten years.”

The ‘smuggling’ or ‘human trafficking’ charge was recently dropped.

The Joe Callahan Support Committee is organizing a caravan of Twin Cities activists to attend the Oct. 31 trial.

Speakers at the indoor rally to support Callahan included Anh Pham of the Committee to Stop FBI Repression; Mary Bird and Francis Thatcher, Canadian attorneys representing Callahan; Mel Reeves, Occupy the Hood; Lisa Luinenburg, Minnesota Immigrant Rights Action Coalition; Stefanie Levi, Socialist Action; April Knutson, Haiti Justice Committee; Wayne Wittman of Vets for Peace; and Joe Callahan.

Many of the speakers talked about the important role that Callahan plays in the Twin Cities labor, peace and immigrant rights movements.

Anh Pham, of the Committee to Stop FBI Repression noted that Callahan was among the progressive Twin Cities leaders that spoke out against the FBI raids on anti-war and international solidarity activists and urged people to attend Callahan’s Oct. 31 trial in Thunder Bay, Canada.

#MinneapolisMN #CommitteeToStopFBIRepression #InjusticeSystem #JoeCallahan #JoeCallahanSupportCommittee #Canada