- cross-posted to:
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- cross-posted to:
- [email protected]
Summary
Canada is preparing to retaliate against Donald Trump’s proposed 25% tariffs on Canadian imports, which could trigger the largest trade war between the nations in decades.
Prime Minister Justin Trudeau promised counter-tariffs worth $37 billion, with potential for further measures, depending on Trump’s final order.
Canadian officials warn the tariffs could harm both economies, disrupting key sectors like automotive, energy, and agriculture.
Labor leaders expressed concerns over job losses and urged collaboration. Canada hopes to avoid tariffs by highlighting their mutual economic impact to U.S. lawmakers.
If, as most economists agree, tariffs hurt the importing country most - why would Canada do that to its own people?
You misunderstand. Both countries relies on the other for goods that they don’t have. If one of the parties suddenly says that their goods now are worth more, for no economic reasons other than to punish the second party, they have to match it. It’s like game theory, you respond to injustice with a measured response similar to the first infraction.
Doing nothing would - in fact - benefit Trump. But Trump lives in a reality where no one except the US have the power to impose their will. Make no mistake, it will hurt both countries.