In an interview on Power & Politics, (David Paterson, Ontario’s representative in Washington) told host David Cochrane that the Canadians and Americans had a 90-minute meeting and the first half-hour was “a master class” from Lutnick in breaking down the U.S. position on tariffs.
The focus of the U.S. government is dealing with its yearly deficit in federal spending, Paterson said. According to the U.S. Treasury Department, the federal government ran a $1.83 trillion US deficit in the 2024 fiscal year.
There are three ways the U.S. government is working to cut down that deficit, Paterson added.
The first is a major budget resolution that calls for billions of dollars in tax cuts, and the second is slashing the size of government through Elon Musk’s Department of Government Efficiency. The third is tariffs, which are meant to be a new revenue source and attract investment into the United States.
It’s honestly a little reassuring to here that the reason for these tariffs is “We want to tax the ever-loving shit out of our citizens so we can give money to billionaires, but we don’t want to call it a tax.”
At least that means that it wasn’t meant to be an act of betrayal and pre-text to war with Canada. I mean, it still was an act of betrayal creating massive hardship and permanently damaging our relationship. But the idea of a Russian/Ukraine remake happening along the 49th parallel seems less likely than it did.
Why not both?