Canadian Counter-Tariffs Would Hurt Families, Experts Warn

The Canadian government is considering imposing counter-tariffs on US products in response to President Trump's decision to increase tariffs on $28 billion worth of imported Canadian goods. According to Renaud Brossard, vice president of Communications at the MEI, this would be paid for by Canadian families, as the cost of these products will be reflected in the price paid by consumers.

Mr. Brossard points out that counter-tariffs are essentially a tax on Canadians, and that the costs of both US tariffs and Canadian counter-tariffs will reduce purchasing power and undermine the competitiveness of businesses on both sides of the border.

The MEI suggests that rather than engaging in a tariff war, the government should focus on measures that will strengthen the Canadian economy. These include reducing interprovincial trade barriers, which could increase Canada's GDP by $69.9 billion if removed just between Quebec and the rest of the provinces, as well as reducing regulatory and tax burdens on businesses.

Mr. Brossard concludes that making the economy stronger means removing many of the barriers to prosperity put in place by governments, and that implementing counter-tariffs will unfortunately impose the same kind of cost on the Canadian economy as President Trump is forcing on the American economy.