What Game Are We Playing?

If anyone is in business for more than 10 years they learn to “play the game”. The financial negotiating game. One of the poorest negotiating events I ever witnessed was when a Trucker walked into a dealership’s mechanics shop that was FULL of trucks being repaired and yelled “I don’t care what it costs, I want my truck fixed ASAP!” The guy left with an invoice recorded in the stars… for the dealership. He clearly didn’t know how to “play the game”.

If I had to buy a Condo and Donald Trump was selling one, I would first look to understand my environment. Is there anyone ELSE selling a Condo? If not, I need to know if Trump needs me to buy a Condo MORE than I need to own one? If I NEED a Condo more than Trump needs to sell one, I would have to accept who holds the power in the negotiations… Trump.

Common sense would then say… don’t piss this guy off… at least until AFTER signing the bill of sale. We have to admit that in the tariff negotiations, we started off with a pissed off seller. Trump didn’t like Governor Trudeau… but let’s be honest… Canadians didn’t like him either. But then, Trump’s 51st state “trolling” hit our collective pride right in the kidneys. He did it for a reason (I think). He was expecting one of two extreme reactions: crumble like a ten-day-old cookie in the sun or flare up into an anti-Trump tirade. Either reaction gave Trump a better footing for a better deal. The anti-Trump “Elbows Up” response gave him the option to walk away… to not negotiate at all. Which, of course, he did.

Ford threatened to shut down electricity to some Northern States and got smacked down faster than Pee Wee Herman in the UFC. Without thinking, Carney tried to “impose” the Digital Service Tax on the US Tech giants and displayed what would happen if Steve Urkel also joined the UFC. Instead of understanding and maturely accepting the environment, Canadian politicians chummed the water with our blood, displaying how weak and vulnerable we really are.

The only thing these anti-Trump choices brought was more evidence that we don’t want to play the game in front of us. It linked us into a National Victim Mentality. We are “unified” in victimhood. It roused a collective support for our misguided and underqualified “politicians”. Instead of leading us through a perilous time, our elected politicians chose to garnish political support by jumping into the ring and fighting in the UFC on our behalf. We went from most favored trade nation to least favored, all in a few months. I wonder how Carney will fare when the USMCA is renegotiated in 2026? I bet we can all collectively cry six inches of Lake Erie water and feel like a really unified country. Misery sure does like company.

Rockwell International (2 billion investment) will NOT be spending their money in Canada but will invest in their US plants. Both the tariffs and the lower corporate tax rate made the shift too much to ignore. They saw the game being played, knew who held the power, didn’t see a mature reaction to the power and decided to get out of Dodge City before the shooting started. This was an opportunity that Canada LOST. It certainly wasn’t the first, and it definitely won’t be the last. I’ve seen several reports that place the total of lost investments over the last decade now in the trillions. Counter that with Trump’s six months of leadership, bringing in between 15 and 20 trillion. Now, to be fair, some of that is Trumpian numbers… so it’s practically more like a 7-10 trillion total. But still, an investment of that magnitude translates into millions of jobs and much higher collective wage rates. It’s a builder move, not a political one.

So, Carney throws wood on the global tariff fire by putting a tariff on China steel. That’s a very significant Domino our PM just pushed over. After which China was motivated to put a 76% tariff on Canadian Canola. For a political party that is so anti-gun, they sure know how to shoot our economy in the foot. If this continues, Canada will be swiftly heading towards a second-class world status (if there is such a thing). When we are all isolated and cold, for many, the thought of being a warm 51st state will be much more tempting.

Brace for impact… because next year the USMCA is to be renegotiated. Oh, how I long for the days when politicians did nothing.

About the Author:

Robert D. Scheper is a leading Accountant and Consultant exclusively serving the Lease/Owner operator industry in Canada. His first book in the Making Your Miles Count series “taxes, taxes, taxes” was released in 2007. His second book “Choosing a Trucking company” is the most in-depth analysis of the independent operator industry today. He has a Master’s degree (MBA) in financial management and has been serving the industry since he and his wife came off the road in 1993. His dedication, commitment and strong opinions can be read and heard in many articles and seminars.

You can find him at www.makingyourmilescount.com or 1-877-987-9787.