Brandon DonnellyCanada must become a global superpower
The silver lining to the US starting a trade war with Canada and regularly threatening annexation is that it has forced this country out of complacency. Indeed, I'm hard pressed to remember a time, at least in my lifetime, when patriotism and nationalism has united so much of Canada. According to a recent survey by Angus Reid, the percentage of Canadians expressing a "deep emotional attachment" to the country jumped from 49% in December 2024 to 59% in February 2025. And as further evidence of...
Brandon DonnellyThe bank robbery capital of the world
Between 1985 and 1995, Los Angeles' retail bank branches were robbed some 17,106 times. In 1992, which was the the city's worst year for robberies, the number was 2,641. This roughly translated into about one bank robbery every 45 minutes of each banking day. All of this, according to this CrimeReads piece by Peter Houlahan, gave Los Angeles the dubious title of "The Bank Robbery Capital of the World" during this time period. So what caused this? Well according to Peter it was facil...
Brandon DonnellyThe story behind those pixelated video game mosaics in Paris
If you've ever been to Paris, you've probably noticed the small pixelated art pieces that are scattered all around the city on buildings and various other hard surfaces. Or maybe you haven't seen or noticed them in Paris, but you've seen similarly pixelated mosaics in one of the other 79 cities around the world where they can be found. Or maybe you have no idea what I'm talking about right now. Huh? Here's an example from Bolivia (click here if you can't see...
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Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.
Subscribe to Brandon Donnelly
Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.
Brandon DonnellyCanada must become a global superpower
The silver lining to the US starting a trade war with Canada and regularly threatening annexation is that it has forced this country out of complacency. Indeed, I'm hard pressed to remember a time, at least in my lifetime, when patriotism and nationalism has united so much of Canada. According to a recent survey by Angus Reid, the percentage of Canadians expressing a "deep emotional attachment" to the country jumped from 49% in December 2024 to 59% in February 2025. And as further evidence of...
Brandon DonnellyThe bank robbery capital of the world
Between 1985 and 1995, Los Angeles' retail bank branches were robbed some 17,106 times. In 1992, which was the the city's worst year for robberies, the number was 2,641. This roughly translated into about one bank robbery every 45 minutes of each banking day. All of this, according to this CrimeReads piece by Peter Houlahan, gave Los Angeles the dubious title of "The Bank Robbery Capital of the World" during this time period. So what caused this? Well according to Peter it was facil...
Brandon DonnellyThe story behind those pixelated video game mosaics in Paris
If you've ever been to Paris, you've probably noticed the small pixelated art pieces that are scattered all around the city on buildings and various other hard surfaces. Or maybe you haven't seen or noticed them in Paris, but you've seen similarly pixelated mosaics in one of the other 79 cities around the world where they can be found. Or maybe you have no idea what I'm talking about right now. Huh? Here's an example from Bolivia (click here if you can't see...
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Brandon DonnellyTariffs — and then what?
Trumps' tariffs are supposed to take effect today. Here's a quote from the Globe and Mail, published yesterday:
“Very importantly, tomorrow, tariffs, 25 per cent on Canada and 25 per cent on Mexico, and that will start. So, they’re gonna have to have a tariff,” Mr. Trump said.
But it's still not clear that he understands how these tariffs will work. Either that, or he's lying and trying to trick people. Because he continues to deny that tariffs represent a tax paid by US importers (and ultimately US consumers) on things coming from Canada and Mexico.
Here's another quote:
"It’s not going to be a cost to you [Americans], it’s going to be a cost to another country."
Yeah, that's not how they work:
When the US puts a tariff on an imported good, the cost of the tariff usually comes directly out of the bank account of an American buyer.
“It’s fair to call a tariff a tax because that’s exactly what it is,” said Erica York, a senior economist at the right-leaning Tax Foundation.
“There’s no way around it. It is a tax on people who buy things from foreign businesses,” she added.
In any event, in the real world, tariffs are bad. They're bad for everyone. So much so, that
Support Brandon Donnelly
Brandon DonnellyTariffs — and then what?
Trumps' tariffs are supposed to take effect today. Here's a quote from the Globe and Mail, published yesterday:
“Very importantly, tomorrow, tariffs, 25 per cent on Canada and 25 per cent on Mexico, and that will start. So, they’re gonna have to have a tariff,” Mr. Trump said.
But it's still not clear that he understands how these tariffs will work. Either that, or he's lying and trying to trick people. Because he continues to deny that tariffs represent a tax paid by US importers (and ultimately US consumers) on things coming from Canada and Mexico.
Here's another quote:
"It’s not going to be a cost to you [Americans], it’s going to be a cost to another country."
Yeah, that's not how they work:
When the US puts a tariff on an imported good, the cost of the tariff usually comes directly out of the bank account of an American buyer.
“It’s fair to call a tariff a tax because that’s exactly what it is,” said Erica York, a senior economist at the right-leaning Tax Foundation.
“There’s no way around it. It is a tax on people who buy things from foreign businesses,” she added.
In any event, in the real world, tariffs are bad. They're bad for everyone. So much so, that
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” said Buffett, whose conglomerate Berkshire Hathaway has large businesses in insurance, railroads, manufacturing, energy and retail. He made the remarks in an interview with CBS News’ Norah O’Donnell for a new documentary on the late publisher of The Washington Post, Katharine Graham. “Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” Buffett said with a laugh. “And then what? You always have to ask that question in economics. You always say, ‘And then what?’”
So let's look at "and then what" when it comes to the automotive sector.
The auto sector is the largest component of trade across Canada, the US, and Mexico. It makes up 22% of all the goods and services the flow across our borders. And in 2023, we produced some 16 million cars together, which generally include parts and materials from all three countries. We're extremely integrated. The WSJ recently broke this down, over here, and if you look at something like pistons, you'll see that this component alone typically crosses a border about 6 times:
What this means is that if you start forcing US importers to pay a tariff on Canadian and Mexican goods, and then Canada and Mexico retaliate with the same (because we/they have to), the entire model breaks down, unless of course consumers are comfortable paying a lot more. Of course, most of you already knew this. Last year, $1.6 trillion worth of goods moved back and forth across the US, Canada, and Mexico. It would be better for all three of us if this number went up, and not down, this year.
Cover photo by CHUTTERSNAP on Unsplash
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” said Buffett, whose conglomerate Berkshire Hathaway has large businesses in insurance, railroads, manufacturing, energy and retail. He made the remarks in an interview with CBS News’ Norah O’Donnell for a new documentary on the late publisher of The Washington Post, Katharine Graham. “Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” Buffett said with a laugh. “And then what? You always have to ask that question in economics. You always say, ‘And then what?’”
So let's look at "and then what" when it comes to the automotive sector.
The auto sector is the largest component of trade across Canada, the US, and Mexico. It makes up 22% of all the goods and services the flow across our borders. And in 2023, we produced some 16 million cars together, which generally include parts and materials from all three countries. We're extremely integrated. The WSJ recently broke this down, over here, and if you look at something like pistons, you'll see that this component alone typically crosses a border about 6 times:
What this means is that if you start forcing US importers to pay a tariff on Canadian and Mexican goods, and then Canada and Mexico retaliate with the same (because we/they have to), the entire model breaks down, unless of course consumers are comfortable paying a lot more. Of course, most of you already knew this. Last year, $1.6 trillion worth of goods moved back and forth across the US, Canada, and Mexico. It would be better for all three of us if this number went up, and not down, this year.
Cover photo by CHUTTERSNAP on Unsplash
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Tariffs — and then what? https://brandondonnelly.com/tariffs-%E2%80%94-and-then-what