Carney Slams Door on Canadian Economy with New Tariff Blitz

Canada's Prime Minister Mark Carney is set to impose counter-tariffs on $28 billion worth of US imports, starting at 15% and going up to 50%. This move comes in response to US President Donald Trump's tariffs on Canadian goods. The estimated cost to Canadians from these new tariffs is around $4 billion, according to University of Calgary economist Trevor Tombe.

Tombe notes that the tariffs will affect low-income families the most, with a regressive tax impact similar to income taxes. He estimates that households earning less than $30,000 annually will lose more than 0.5% of their disposable income due to these tariffs. Additionally, families with children will pay around $250 per year, while those without kids will pay less than $170.

Tombe also warns that counter-tariffs can have negative impacts on domestic economic growth, business investment, productivity, and exports to other countries beyond the US. He acknowledges that the Canadian government says these revenues from tariffs are used to support Canadian businesses and workers, but emphasizes that Canadians should be aware of the costs.