The Loonie beats the US dollar by a wider margin - What Will become of our Manufacturing jobs ?

By Julian Beltrame, The Canadian Press

OTTAWA - The Canadian dollar hit a record high Friday morning, jumping past US$1.07 after a strong employment report that showed the Canadian economy created 63,000 jobs in October.
The loonie was up more than two U.S. cents at one point, reaching 107.17 cents US before edging back.


"That's a big move," said Bank of Montreal deputy chief economist Douglas Porter. "I think a reasonable near-term target now is US$1.10, but there's no sign it's going to stop there."
http://ca.news.yahoo.com/s/capress/07110...
It is nice that the Loonie is beating the pants off old George and the yanky buck -
But what consequences will this have to the manfactureing sector that has historically exported with a weak dollar
What can we do to protect ourselves from a flood of US products and should we be looking at heavy trade tarrif's and import rules to keep our stuff in and American stuff out ?
How can we protect ourselves

1st let me congratulate you. I assume you are Canadian. You are probably the 1st Canadian on YA with some economic knowledge. It seems most Canadians are so ecstatic over the loonies rise that they have lost all common sense.

Yes, Canadian manufacturing will get hurt and hurt severely. 25% of the Canadian economy is based on exports to the US. While oil exports will not suffer (and oil is a major reason of the rise of the loonie), everything else will get cut. From lumber, to autos to retail (cross border shopping). Forget tariffs, you forgot you signed NAFTA.

I expect the loonie to fall, there will be pressure on the Canadian central bank to cut rates before the Canadian economy starts to get too severly effected.

The reason the loonie is up, is the oil and other raw materials, Canada has. A high loonie will make the companies more efficient and sharper. The opposite will happen in the USA. companies will get used to easy money for export and get lazy. It will backlash.

When was the last thing you bought something made in the US?Almost of everything i have bought in months came from Asia,mainly China.Even with the dollar at par we have the advantage over the US since our health-care cost for companies is so much lower than the US.The US and Canada have the same problem ,we are losing manufacturing jobs to china not from each other.Free trade is great,The British empire got rich and power-full because of it`s trade routes.Canada has more trade agreement`s than any other country in the world.As long as oil prices stay high, we will keep getting tax cut`s.The manufacturing industry needs the biggest tax cut`s right now.Canada`s goal is to cut corporate tax to one of lowest in the world.Check this report out,i think it`s the reason are dollar is so high

Dear Loonie, let me interpret for you. Canada is already one of the biggest customers of US goods. Now that your money goes farther you will buy even more. Good for US economy....thank you very much