Home Features They Fight – We Lose

They Fight – We Lose

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You have probably heard about the “trade war” going on between the government of the United States and the government of Canada. This is important. It is not a war between the American and Canadian people – but it is the American and Canadian people who will pay for the war.

Just as Americans and Canadians are paying for that other war.

Trump – currently in control of the American government in the same way that an idiot child given a loaded gun is in charge of who gets shot – has fired back at the government of Canada, which fired off a 50 percent retaliatory tariff (that is to say, imposed a tax) on American-made large displacement motorcycles, which effectively means Harleys and Indians.

Trump, retaliating in kind, outright banned Can Am Spyders, which are three-wheelers made in Valcourt, Canada.

What does it mean for Americans – and Canadians?

Well, it obviously means no Canadian-made Can Am Spyders for Americans, for as long as the ban remains in force. It also means Americans will be paying more for the Can Am Spyders that are already in America, at American dealerships – because prices will go up to reflect the artificially created reduction in supply. If Americans who want Can Am Spyders decide they can’t afford to pay more for the remaining inventory that dealers are likely going to try to charge more for, then it will be the dealers who pay – in the form of no sales.  Either way, it is Americans who pay (as well as Canadians who work making the Can Am Spyder). It will not be Trump or his Canadian counterpart.

This is important.

Trump imposes tariffs – taxes – on imported stuff, from Canada (and elsewhere) and we pay the extra. Not “Canada.” Just as Canadians  who want to by Harleys and Indians made in America that are tariff-taxed by Trump’s Canadian analog pay the extra.

How much extra? Well, a Harley or Indian bike with a “customs value” of $30,000 Canadian dollars that’s subject to a 50 percent tariff tax could become a $45,000 bike ($15,000 in tariff-taxes) plus another $750 Canadian in value added (GST) taxes, which the Canadian government imposes (and extracts). Interestingly, electric “motorcycles” – such as the Harley LiveWire – are exempt from these punitive taxes. The air fingers quote marks are added to mock the idea of an electric motorcycle, which is something like an artificial woman. It may look real, but it ain’t the same. The more relevant point as it pertain to this discussion is that Canada’s government is hurting Canadians – excepting, for the moment, Canadians who are in congruence with the political orthodoxies set forth by the Canadian government. They are rewarded for their congruence, at the expense of those who are not.

Forbes spells it out:Canadian industry minister Mélanie Joly has said Ottawa deliberately selected products tied to particular U.S. states as it seeks leverage ahead of the November midterm elections.”

Forbes adds that “Canadian Harley sales have already softened: The company reported 3,735 retail sales there during the first half of 2026, down from 3,912 a year earlier.” This will hurt Americans – including Americans who own stock in Harley-Davidson (and Indian) as well as – potentially – Americans who may lose their jobs manufacturing and selling Harley and Indian motorcycles.

Everything gets more expensive – for us.

These expenses are abstractions for Trump and his Canadian counterpart because they are rich and thus can afford to be callous and they are rich because they control the apparatus of the state, which they can (and do) leverage to enrich themselves at our expense.

They are not “capitalists.” They are state capitalists, though it can be argued the term is self-contradictory. Capitalism is supposed to be another way of saying free market (or free enterprise) and there can be no such thing when the government is preventing (or punishing) the free exchange of goods and services, which is exactly what Trump and his Canadian counterpart are doing. Neither are doing what capitalism demands – which is to laissez faire – or leave us alone. Let Can Am make three wheelers and sell them to anyone who wants to buy them. Let Harley and Indian do the same. Neither are harming anyone by making and selling their bikes so leave them alone. 

As far as the fatuity used by Trump to justify his tariff-taxes – that they are an “incentive” to manufacture things in America rather than make them somewhere else – the better incentive is to make it more attractive to manufacture things here by leaving manufacturers alone. When they are not – when they are hasslled and mulcted at every turn – there is less incentive to even bother trying.

The argument that it is necessary “regulate” (that is, to impose compliance costs) is also fatuous. If harms are caused, there are courts for that. The problem – from the point-of-view of the regulatory apparat – is that in a court it is necessary to establish that actual harm has been caused. It least, it was once necessary – before it became an “offense” to affront the authority of the state.

Why won’t Trump propose such reforms? Because they’d require him to leave us alone. That is like asking a mosquito to do the same and good luck with that.

. . .

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1 COMMENT

  1. Owing to the historical happenstance that Detroit became Motor City over a century ago, manufacturing of autos and auto parts naturally spread across the river into Ontario. As NPR recalls,

    ‘The U.S. and Canada started weaving their auto supply chains together in 1965, when they signed a pact with a goal of consolidating their auto industries and expanding their combined market. The pact removed duties on auto products or equipment crossing the border when they are made of at least 50% of U.S. or Canadian content.’

    https://www.npr.org/2026/09/11/nx-s1-5961530/canada-trade-war-auto-parts-supply-chain

    Since it benefits auto makers and both countries, US and Canadian governments encouraged cross-border auto manufacturing and wrote it into NAFTA, now known as USMCA, which president Donnie Milfhouse Fruitcake often mistakes for the Village People song YMCA. But this binational, well-integrated industry could splinter this year: Donnie Fruitcake has threatened 50% tariffs on Canadian vehicles, auto parts and steel starting on Jan. 1.

    A product of the very local, very corrupt, and very unsophisticated real estate development industry, Donnie understands nothing about trade and industry. He thinks he learned at the Wharton School (if he was even there) that tariffs are a universal tonic, much as George Washington’s doctors regarded bloodletting as salutary for health.

    The fool in the White House is a spiteful mutant, leaving a trail of destruction in his wake. But the other shoe has yet to drop: as interest rates escalate ominously, the likelihood of a humdinger recession — not seen since 2007-2009 — becomes a near certainty.

    That last financial crisis/goat rodeo crashed housing prices by 50 percent in many cities. If the American middle class gets whacked that hard again, they will be baying for blood. And I will gleefully egg them on, intentionally misquoting Shakespeare: ‘First, let’s kill castrate all the Republicans.’ 🙂

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