Clearing Up the Canada Tariff Misinformation

00:00 - Introduction
02:23 - Canada's Supply Management
04:20 - Canada's Tariff Rates
06:22 - Tariff Rate Quotas
06:51 - US Preferential Rates
08:24 - Quota Underutilization
10:22 - US' Own Restrictions
12:06 - Closing Remarks

There's been a lot of discussion of Canada's tariffs against US imports, most of which has been misleading or flat out wrong. Let's clear the air.

DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution, although Richard does work as an employee for an investment manager. Richard Coffin does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers

[ThePlainBagel]

Happy Friday, here are the key resources used in the video:

[Archr]

sad thing is... this is well researched and properly explained, only to receive fewer eyeballs than someone that does no research and spews random numbers onto a short form format

[BenMagargee]

Sorry if this is not the kind of video you want to be researching and making right now, but it is important and I am very grateful to learn. Its getting harder and harder to verify the multitude of bad faith arguements in circulation right now.

[fungdark]

This Texan is very grateful for Bagel Man in this incredibly frustrating time
Thanks, Richard

[sandysuma]

Once again you have done your due diligence and gave us the facts and this is the reason I watch your videos. We can always count on The Plain Bagel to give us real facts rather than false information to mislead us. Thanks for your research.

[tedcarson]

With all the misinformation, exaggeration, and blatant lies floated by people we expect to be honest, trustworthy and accurate .... it's very much appreciated to be presented with important information, clearly explained and supported by verifiable date. THANK YOU VERY MUCH !!!!

[bububun]

It's more important then ever for experts in their fields to have good communication. Videos like this are not just appreciated but NEEDED.

[CollegeFootballHistory]

Dude is more trustworthy than 98% of whatever else is out there.

[stalememe]

I genuinely believe this is the best kind of political video. A very specific talking point in isolation, in a field the creator is knowledgeable in, made by somebody who is very non-political and has no interest in getting involved with the emotionally-charged side of the internet. You really can't trust anyone else these days. Thank you and keep up the good work.

[frogApple]

Another fantastic video by The Plain Bagel. A Canadian that researches what he shares vs someone just sharing how they feel is so important in these messed up times. Thank you!

[bhut]

Wonderful. Trouble is you're fighting against : "The glory which is built upon a lie soon becomes a most unpleasant incumbrance. ... How easy it is to make people believe a lie, and how hard it is to undo that work again!" Mark Twain.

[benderbendingrofriguez]

It doesn't matter the amount of time you explain this. You cannot debate with an idiot because they have more years of experience being idiots.

[LyndonVrooman]

If only had had seen this a week ago, when I spent far too many hours fuddling through the various agreements on both sides and imported/exported volumes after I had an American friend ask some genuine questions. This was amazingly done. Thank you!

[Oblithian]

Thank you, This is the first video I have seen actually comprehensively addressing the dairy topic.

The only thing I not covered as much is just what difference we are talking about with quality and quantity and the negative effect that would have long term.

[JonathanVanlol]

i was literally trying to google what existing canadian tariffs were and got nowhere, great job with this video!

[porcupinezebra]

It aint misinformation, its disinformation.

[optimistgrump]

He's so Canadian--polite and precise, even though you can tell he's really upset with all the lies. It seems that the Canadian approach is to maintain high prices, so Canadian consumers are subsidizing Canadian farmers, but that won't work if Canadian consumers are also subsidizing American farmers.

[FrancoisHBear]

Thank you for this. I saw someone claim Canada was charging 350% on diary and spent a few minutes wading through the USMCA to counter this misinformation. This is fair better researched and explained than anything I can do.

[Backtothehat]

As an American 🇺🇸, I Love your work. Very educational. It’s clear both sides have arguments.

[opcolu]

Hi Richard,

I would like to point out one small flaw in logic when looking at the "effective rate" of 0.2%. The problem with relying on this rate is that it ignores tariffs that have actually been effective at crushing trade either partially or entirely, which is a big thing to overlook when trying to explain high tariff rates. As an example, if there were, say, a tariff of 1000% on car tires (this is fictional), none of our trade partners would even bother exporting tires to Canada, which would make the "effective rate" of the tariff 0%. Clearly, that's not reflective of the actual effect of the tariff, which would be devastating for anyone who imported car tires into Canada.

Given the later information you provided about the US rarely ever hitting the export levels that would trigger the higher tariffs, I generally agree that these high tariffs are not nearly as damaging as some of the published numbers imply. I do, however, think there is a lot more nuance to the tariffs than what was covered here. If the true effects of all Canadian tariffs was really only 0.2%, this incredibly complex, expensive, and difficult to implement system would have been scrapped a long time ago, and yet it remains in place.

Finally, I'd like to point out that just because the US is not hitting full quotas on some of the goods with high tariffs, does not mean the existence of the tariffs is trivial or inconsequential. As an example of this, it may not be cost-effective for the US to set up the necessary supply chains to deliver milk into Canada at competitive prices if they know the ceiling is only 15% of the total market. If the tariff did not exist, then the potential for sales in Canada may well make it financially viable to set up a competitive supply from the states. I think this latter reason is the primary underlying goal of the tariffs we do have, and the reason they remain in place. It's also the reason that looking at the "effective rate" is meaningless in this context.

I do want to thank you for a very informative and well researched video, and I appreciate the honesty and well researched information you provided.