The US-Canada trade war is lose-lose
A U.S. tariff is an import tax, ultimately paid by U.S. consumers, as importers cannot absorb much, or any, of the tax.
TL;DR
- Tariffs are import taxes paid by consumers in the imposing country.
- U.S. threats of tariffs have led to Canadian retaliatory tariffs.
- Both countries and their citizens suffer from higher prices and damaged business relationships.
- Trade wars can lead to permanent loss of business for domestic producers.
- Congress has the constitutional responsibility for tariffs and should intervene.
- Ending trade wars with allies is crucial for economic and political freedom.