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No doubt slapping tariffs on Canadian goods will reduce the flow of said goods. But that's a reduction, not a termination. US demand for those goods still exis
by bruce511 1y ago
No doubt slapping tariffs on Canadian goods will reduce the flow of said goods.
But that's a reduction, not a termination. US demand for those goods still exist. And it is US consumers that pay.
The reduction is a result of lower consumer spending power. Which will affect everything, not just the tariffed goods.
Some of the goods may end up being sourced in the US. However that won't affect consumer prices, which will remain high. (The whole point of tarifs is to drive up local prices so domestic production can compete. )
Some may be sourced from other countries. But since all countries are being tariffed there are only marginal gains here.
At the same time Canadian producers will actively explore alternate markets. This will (long term) improve Canada's economic security by reducing dependence on US markets.
All the above assumes T won't start negotiating again next week. Which since TACO is likely anyway.
Either way, this will be a long-term gain for Canada and long term pain for the US.