Canada’s Response to US Tariffs

The United States, with its aim of making “America Great Again,” has taken a trade war approach to many of its major trading partners by inflicting tariffs across the spectrum. Most nations were taken by surprise by this move from the president of the United States. Though the fact remains, that the countries would not retaliate to counter the move, a counter-tariff measure has been enforced by many. Canada, one of the prominent partners has taken measures

Canada was quite sharp in responding to the tariffs imposed. The prime minister of Canada felt strongly that the United States' imposition of tariffs was a way to collapse the economy and gain prominence again. The imposition of 25% counter-tariffs on American imports which comes to a tune of 100 billion USD. It is said to have triggered markets and economic analysts into a panic mode, since the announcement, hurt many prominent stock indices.

Canada will also sort to other nontariff measures to be implemented by its various provinces and counties. This will highly impact the economy to a certain extent in terms of the prices of certain commodities going high in the short term. But in time, the nation is likely to opt for stronger ties with other nations especially from the G7 nations. This will enhance the potential for stronger economic resilience without the support from America. The policies with its trading partners will likely be stronger and may see many new nations sign trade agreements to keep the economy on a strong economic footing.

This move from Canada and also from many of the important trading partners of  America is a strong message of retaliation. With the implementation of the tariffs, one of the important economic aspects that are likely to be affected is inflation. It is anticipated to spike again, making purchasing and production costs spike a lot higher than expected. The major hit will be on the supply side of the economy and the citizens are likely to pay the price -due to the rise in costs. Another important aspect to note is that prices for agricultural products and steel are likely to see a massive spike in America.