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Graphic Truth
Since taking office, Donald Trump has repeatedly threatened the US’s closest ally, Canada, with high tariffs and statehood, sparking a surge of national pride among Canadians. The tension has manifested in symbolic acts of resistance: coffee shops renaming Americanos to “Canadianos” and premiers threatening to ban American products. New polling shows that this defiance isn’t anecdotal.
An Angus Reid poll conducted over the weekend reveals a dramatic shift in Canadian patriotism. Strong patriotic feelings increased from 49% to 59% in just one month. Canadian pride is up 12 points in British Columbia, 13 points in Quebec, nine points in Ontario, and a whopping 15 points in Atlantic Canada. The prairie provinces saw more modest increases, with Alberta up three points and Saskatchewan up four points, while Manitoba experienced a slight decline.
Despite a last-minute deal to delay 25% tariffs, the threat deeply unsettled Canadians. Given the US’s status as Canada's largest trading partner, potential tariffs could trigger a recession and imperil thousands of jobs. Accordingly, perhaps the poll’s most striking finding was that 91% of Canadians now want to reduce dependence on the US, prioritizing national economic independence over reconciliation.
The Biden administration scaled back the EU tariffs but built on the China tariffs with additional measures. The tariffed share of US imports is now the highest it has been in decades, and Trump has threatened to boost tariffs even more.
But he’s starting from what is still, despite all that, a low base. The US has the second-lowest tariff barriers among the G20, the group of the world’s largest economies.In 2023, the trade-weighted average US tariff rate – a measure that takes into account the mix of goods a country actually imports – was just 2.2%. Only Japan’s was lower. Canada’s, by comparison, was 3.4%. The EU’s was 2.7%. And India’s was a whopping 12%. Here’s a look at how all 20 economies stack up when it comes to levies at the border.Corporate America is showing unprecedented support for Donald Trump’s inauguration, donating record-breaking amounts. Many companies from the tech, fossil fuel, financial services, and automotive industries have doubled their donations since Trump’s first term in 2017.
Not only are companies giving larger amounts than they did for Trump’s first inauguration, but they are also announcing their contributions months before required federal reporting – a contrast from 2017, when many companies tried to distance themselves from the president-elect, or in 2021, when many companies publicly cut ties with Trump following the Jan. 6 insurrection.
Top donating companies include the world's five biggest tech firms like OpenAI and Uber, major auto manufacturers like Toyota, Ford, and GM, healthcare companies like Pfizer, and financial services like Robinhood and Intuit – all of which have each donated at least $1 million. Microsoft doubled its usual contribution to $1 million, while Google more than tripled its previous donations to $1 million as well.
Government watchdogs question how this money will be spent. While the inaugural committee must disclose donors who give more than $200 within 90 days of taking office, there are no restrictions on contribution amounts or requirements to disclose how the money is spent. Trump also has an allied super PAC and a 501(c)4 group accepting donations which do not need to be disclosed. Between the private donations to the inaugural fund and the PACs, Trump is expected to rake in $250 million before taking office.
The logic: Companies don’t give unless they expect to get something in return, and the writing on the wall right now – from the inauguration’s overflowing coffers to dinners costing $250 thousand a plate – is that companies believe they can, or need to, pay up if they want to influence or enjoy favorable policies under the incoming administration.Recent polls on patriotism show that fewer people can relate to the lyrics “I’m proud to be an American” — or “Canadian” — anymore. Yes, Lee Greenwood has a version of his patriotic anthem for both sides of the border.
The percentages of Canadians and Americans with strong patriotic feelings are at a three-decade low. In Canada, only 49% said they had a deep attachment to their country in 2024, down from 62% in 2016. In the US, that number has plummeted from 52% eight years ago to 43% today.
The decline is attributed to division and discord running rampant since the pandemic, with many expressing dismay at growing polarization and a lack of a “middle” option politically. In the US, the growing toxicity between the two parties, in particular, has also soured many Americans’ attitudes — especially when their side loses an election.
US Surgeon General Vivek Murthy is sounding the alarm that drinking alcohol is linked to cancer, and he’s calling for a rethink on the federal government’s guideline for how much alcohol is safe to drink. Right now, US government guidelines recommend that men consume no more than two drinks per day, and women have no more than one.
His call comes at the right time for Dry January when many choose to forego alcohol and focus on New Year’s resolutions. But the effort comes at the wrong time for the restaurant industry, which depends on alcohol sales to make a profit, especially as food and labor costs rise, and as inflation-weary diners are cutting back on eating out.
But consumers may already be heeding his warning. According to the WHO and the CIA’s Factbook, both Canadians and Americans have cut back on their drinking since booze consumption surged during the pandemic.
The US government currently raises about $5 trillion a year in revenue. That plus another $2 trillion in debt are what make up the nearly $7 trillion that Uncle Sam spends annually.
But where does that revenue actually come from? Here’s a look at the breakdown.
Bear in mind, as you look at this, that incoming US president Donald Trump has suggested he wants to replace the income tax with his new tariffs. Would that be possible?
It’s true that until the income tax was implemented in the early 20th century, tariffs provided the lion’s share of US government revenue. But that was a time before social security, medicare, or a modern military when the government spent barely $500,000 a year.
With Trump’s tariffs expected to raise, at best, about $300 billion per year, using them to replace income taxes would entail an unfathomably radical shrinking of the US federal government.
Graphic Truth: Are families earning enough to buy homes?
President-elect Donald Trump has promised to loosen building regulations and deport millions of undocumented immigrants to increase the supply of homes. Meanwhile, after promising to build 3.9 million homes by 2031 back in April, Prime Minister Justin Trudeau replaced his housing minister with Nathaniel Erskine-Smith in December. Erskine-Smith has yet to propose any additional policies to solve the crisis.
In 2023, the average Canadian home cost $670,389, more than 10 times the average Canadian annual income. In 2003, for comparison, a home cost just 5.8 times the average household income. And in the US, median household income increased by about 60% between 2000 and 2020, while the average price of a home nearly doubled.
Small wonder that people in both countries are increasingly pessimistic about the prospect of homeownership. A Gallup survey from May found the vast majority of Americans (76%) say it’s a bad time to buy a house. It seems that on both sides of the border, more and more people are giving up on ever owning a home.
Here’s a look at the increase in home prices and median household income in Canada and the US, from 2000 to 2020. We have to ask: Is homeownership even a dream worth pursuing now? We’d love to hear your thoughts. Write to us here.