00:00Currently, there is an economic war that is happening between the U.S. and the rest of the world.
00:08We all know that the new policy in the U.S. is driven by an inflationary policy and inflationary results.
00:19And the U.S. administration is trying to reduce this inflation impact on its citizens
00:27by trying to reduce interest rates and by trying to increase liquidity to the country.
00:40So today, this economic war is happening about putting tariffs on every country that does not comply with the U.S. requirements.
00:54Canada is one of the most important examples in this case.
01:00You know, the U.S. is claiming an important part of Canada recently
01:08because of its richness in rare earth minerals and oil and other items
01:18that are very important for the sustainability and the sovereignty of the American, you know, economy.
01:26In this regard, Canada turned towards China as a de-risking or as a hedge to any retaliation from the U.S.
01:38concerning the tariffs with which they were threatened to increase by around 100 percent over the coming year.
01:49So today, you know, having Canada turning towards China is a critical transformation in the equilibrium of the worldwide economy.
02:02You know, Canada was always American and American driven and supporting the U.S.
02:07Now, having, pushing Canada towards evaluating and going with China, you know, is a critical transformation all over in the world.
02:18So how Canada will deal with that, I think it's a difficult equation.
02:22But at the same time, it's a message to the American administration saying that, guys, what you are trying to put on us is something that will destroy our economy,
02:35that will put a break on the growth and will increase, you know, the household prices, which will create inflation, weaken our currency.
02:48So the impact will be huge, Catalina.
02:52So today, they are still in negotiation.
02:55How they are going to do it, we'll wait for it in the next week or so because things are going very fast.
03:00Just to specify that all this coming from the fact that 20 years ago or more, you know, countries were going towards globalization.
03:09Everybody used to hurt globalization.
03:11Then 10 years ago, it goes back to globalization, globalization and globalization.
03:16Now, every country, in order to preserve its sovereignty in terms of economical power, in terms of logistic power, in terms of military power,
03:27they are looking, all of them, to localize.
03:29But in order to localize, they need a transition period.
03:31So they need to create new trade channels in order to absorb any shock coming from increase in tariffs so that they can, on the mid-run,
03:43try to transform their economy from a global one to a local or local one.
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