Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 172

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 Warren Buffett recently described them in this way :

“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

Ski and snowboard resorts have people known as snow reporters. Their job is to get up at an ungodly hour, check out the snow, and then report on the conditions, so that would-be patrons can decide if they want to spend their time and money on it. The snow reporter at a resort called Sugarbush in Vermont is a young lady by the name of Lucy Welch (who in her official bio explains that she has, sadly, no relation to the "mighty Fruit Snack Empire").

On the morning of March 1 -- the day that JD Vance was trying to ski at Sugarbush -- she decided to courageously commandeer the resort's "platform" to deliver a message. Every snow report subscriber got her letter in their inbox (though I'm told it was quickly pulled from the resort's website). And since she has a great literary voice, she speaks eloquently about skiing and the mountains, and she delivers a crucial and timely message, I'm sharing it in full with all of you today.

It may have been pulled from Sugarbush's website, but this blog lives on a blockchain that cannot be censored and that is intended to act as permanent storage. Its mission is to preserve " humanity's most important data " and so I'd like to make sure that her actions and this letter do not get erased over time. Here it is:

Mar 1st, 2025, 6:49 AM: Today of all days, I would like to reflect on what Sugarbush means to me. This mountain has brought me endless days of joy, adventure, challenges, new experiences, beauty, community, and peace. I’ve found that nothing cures a racing mind quite like skiing through the trees and stopping to take a deep breath of that fresh forest air. The world around us might be a scary place, but these little moments of tranquility, moments I’ve been fortunate enough to enjoy as a direct result of my employment here, give me, and I’d guess you, too, a sense of strength and stability.

This fresh forest air, is, more specifically fresh National Forest air. Sugarbush operates on 1745 acres of the Green Mountain National Forest. Right now, National Forest lands and National Parks are under direct attack by the current Administration, who is swiftly terminating the positions of dedicated employees who devote their lives to protecting the land we love, and to protecting us while we are enjoying that land.

This Administration also neglects to address the danger, or even the existence of, climate change, the biggest threat to the future of our industry, and the skiing we all so much enjoy here. Burlington, VT is one of the fastest-warming cities in the country, and Vermont is the 9th fastest-warming state. The National Oceanic and Atmospheric Association (NOAA), a resource I use every day for snow reporting, is crucial in monitoring extreme weather events and informing public safety measures, and is also experiencing widespread layoffs and defunding at the hands of the Administration.

Sugarbush would not be Sugarbush without our wonderful community. Employees and patrons alike, we are made up of some of the most kind hearted, hardworking people I have ever met. Our community is rich with folks of all different orientations, ethnicities, and walks of life, who all contribute to make this place what it is. They all love Sugarbush because it is a place where they can come to move their bodies, to connect with the land, to challenge themselves, to build character, to nourish their souls with the gift of skiing.

Many of these people are part of the LGBTQI+ community. Many (well, that’s a stretch, we all know this is an incredibly white-washed industry) are people of color. Half are women. Many are veterans or adaptive skiers who, through Vermont Adaptive, are able to access snow sports in part thanks to federal grants through the Department of Veterans Affairs, which is also facing devastating cuts. Many of our beloved employees moved across the world through an exchange program on the J1 visa to help this resort run, and they are not US citizens. ALL of these groups are being targeted, undervalued, and disrespected by the current Administration.

The beauty of National Forest land, is that anyone and everyone is welcome to enjoy it. Anyone and everyone can buy a lift ticket. I also imagine it is incredibly difficult, and likely impossible, to say “No” to the Secret Service. I hope that, instead of faulting Sugarbush management or employees for “allowing this to happen”, you can direct your anger to the source — the Administration that, in my oh-so-humble opinion, is threatening our democracy, our livelihoods, our land.

I want to reiterate how much I admire and respect my fellow employees and managers — they work so hard to make this place operate, to keep you coming back and enjoying it and making lifelong memories. Many of them may feel the same way that I do, but their hands are tied, and for good reason. They have families to support, they have benefits and health insurance to receive, they face far greater and more binding pressure from Corporate. I am in a privileged position here, in that I work only seasonally, I do not rely on this job for health insurance or benefits, and hey, waking up at 4:30 AM isn’t exactly sustainable. Therefore, I am using my relative “platform” as snow reporter, to be disruptive — I don’t have a whole lot to lose. We are living in a really scary and really serious time. What we do or don’t do, matters. This whole shpiel probably won’t change a whole lot, and I can only assume that I will be fired, but at least this will do even just a smidge more than just shutting up and being a sheep.

I am really scared for our future. Acting like nothing is happening here feels way scarier than losing my job. I want to have kids one day, and I want to teach them to ski. The policies and ideals of the current Administration, however, are not conducive to either of these things, because, at least how things look now, I’d never be able to afford a good life for a child anyway, and snow will be a thing of Vermont history. So please, for the sake of our future shredders: Be Better Here. It has truly been a pleasure writing your morning snow reports — I hope this one sticks with you. With love, peace, and hope, Lucy Welch

Lucy, thank you for your bravery.

Cover photo by Joel & Jasmin Førestbird on Unsplash

Earlier this month, a group of Canadian founders, entrepreneurs, and business leaders launched a new and important platform called Build Canada . The idea is simple. Every week, an experienced entrepreneur will publish a policy proposal that includes an issue that our country is facing and then a precise policy solution . And if you happen to agree with the recommendations being put forward, there's an easy way for you to send it directly to your MP.

Here's their " about " page:

Dear Fellow Canadians,

Canada should be the world’s richest country. But for decades, small thinking, bureaucratic inertia, and special interests have kept us from realizing our potential.

The world is changing quickly. Technology, communication, geopolitics, and culture are shifting. If we don’t change with it our moment will slip away. We can’t afford excuses anymore. Canada must break free from the mindset of “this is how things are done”. It’s time to act differently.

Build Canada is a platform of bold ideas for growth, innovation, and prosperity.

Every policy is proposed by successful Canadian entrepreneurs with deep knowledge from building in the relevant areas. We’re supported by policy experts with experience in government. Our singular focus is a Canada where people build again.

That includes:

• Selling more Canadian products and resources around the world

• Changes to boost productivity and competitiveness

• Developing a culture that celebrates freedom and ambition

• New ways to deliver better services at lower costs

• Tax reforms that drive innovation and investment

We all know that our country could be so much more than it is. We have the land, the talent, the know-how, and the energy to be the most abundant nation on earth. And our people have a spirit that could take them anywhere they wanted to go.

Let's build the Canada you know is possible.

Not every entrepreneur has to agree with every other proposal on site, but that's partially the point, not to dilute things down. It's about creating real dialogue, urging meaningful change, and creating a more prosperous Canada. A fundamental rethink of the status quo has been needed in this country for as long as I can remember. And with all of the geopolitical uncertainty happening in the world today, it has only become more critical to build Canada .

Cover photo by Tom Carnegie on Unsplash