Counter-Tariffs Don't Work: Canada's Trade War Escalation

The Canadian government has imposed nearly $30 billion in counter-tariffs on goods coming into Canada from the United States, in response to tariffs imposed by the Trump administration. This escalation of the trade conflict between Canada and the U.S. will lead to higher costs for consumers both north and south of the border.

Despite claims that tariffs are a tool to change behavior, history shows they don't produce this kind of outcome. A nearly 100-year-old trade conflict between Canada and the U.S. demonstrates that counter-tariffs only worsen economic conditions. The Great Depression in Canada was exacerbated by such policies, which had no impact on U.S. policy.

Canada cannot afford to sit around and try to outlast Trump with retaliatory tariffs and tens of billions of dollars of government subsidies, paid for ultimately by taxpayers. Instead, Canadians should be demanding the government act to strengthen and diversify the economy and tear down trade barriers.