Canada Strikes Back.
New Canadian tariffs targeting roughly $20 billion in U.S. imports officially snapped into place on Tuesday, the latest escalation in an increasingly costly trade war that has ensnarled two longtime allies.
The duties apply to a variety of U.S. goods, including clothing, cheese, metal parts and wood products. The approach is meant to mimic the taxes that President Trump imposed on Canada after trade talks between the two neighbors collapsed in acrimony last month.
For now, the economic effects of the tit-for-tat may be limited because the tariffs encompass only a small portion of the annual trade between the United States and Canada. The more pressing concern is a potential cycle of retaliation, one that results in even higher and more exhaustive duties that harm families and businesses on both sides of the border.
The trade war deemed the dumbest of all time by the ‘Wall Street Journal’ continues to escalate. Our closest trading partner is now considered persona non grata in this Administration. The animosity stems from the Administration’s repeated desire to take over Canada as a 51st state very early on and things have gone down hill from there. The America consumer is now going to be paying more and more more for products from Canada.
