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Since Trump wants to tax products made out of the country..


elijahbird7

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Ya!! Something is going on for sure. GM Ingersol plant in Canada abruptly announced the Terrain will be going to Mexico and 600 jobs are gone.

Canadian government invested $560mil two years ago to invest with GM. The plant has been hot with activity building vehicles to capacity. The announcement came with no warning to the workers or the union .

 

The Edge and MKX are world vehicles so I'm uncertain as to the trade tariffs between Canada, Europe, and other countries as opposed to the U.S. Everything seems to be in a mess right now until the existing NAFTA agreement blows up or something is put in it's place.

 

Canada and the US are fair trading partners. There has never been massive trade deficits. In 2015 Canada exported $280bil and imported $290bil. So the US goods trade deficit was $15bil.

 

Having said, that I personally believe that is no longer relevant. I think we are going into uncharted waters and Canada needs to be ready for the other shoe to drop. 

 

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IMO, with issues & controversy swirling around NAFTA, new political environments in both countries, future of CAFE, controversies regarding wage parity, union negotiations, Tier 2 employees, etc., a more relevant question might be: will there be a Canadian auto industry 10 years from now? An answer might make the question of MKX pricing moot.

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