In an interview on Power & Politics, (David Paterson, Ontario’s representative in Washington) told host David Cochrane that the Canadians and Americans had a 90-minute meeting and the first half-hour was “a master class” from Lutnick in breaking down the U.S. position on tariffs.
The focus of the U.S. government is dealing with its yearly deficit in federal spending, Paterson said. According to the U.S. Treasury Department, the federal government ran a $1.83 trillion US deficit in the 2024 fiscal year.
There are three ways the U.S. government is working to cut down that deficit, Paterson added.
The first is a major budget resolution that calls for billions of dollars in tax cuts, and the second is slashing the size of government through Elon Musk’s Department of Government Efficiency. The third is tariffs, which are meant to be a new revenue source and attract investment into the United States.
OPEC would have sway in this. EU and Arab Kingdoms use US controlled SWIFT payment system. Only BRICS have been working on an alternate system, and Europe’s history of sanctions and sanctimony usually at US’s behest doesn’t make them a reliable currency partner for the global south. Supporting BRICS system might be quicker path, and actual independence from US.
For sure, EU trade in EUR is an easier step. Global south would need to trust their holdings not seized.