Tariff Retaliation: A Losing Strategy for Canada

Canada's latest tariff retaliation against the United States is a losing strategy, according to Dr. Roslyn Kunin, a respected Canadian economist.

The tariffs, which took effect on $27.6 billion worth of imports from the US on September 8, are meant to punish America for imposing its own tariffs. However, Dr. Kunin argues that they will ultimately hurt Canadian businesses and consumers more than Americans.

She points out that Canada's economy is smaller than the US and relies heavily on the American market, with nearly 72% of Canadian merchandise exports going to the US last year.

Dr. Kunin warns that retaliatory tariffs can make imports more expensive and less available, increasing costs for consumers and businesses alike. She also notes that modern manufacturing relies heavily on automation and technology, so it takes fewer workers to produce goods than in the past.

Instead of copying Trump's economic policies, Dr. Kunin suggests that Canada should focus on becoming less dependent on one market by building infrastructure, removing trade obstacles within Canada, and finding new suppliers and customers outside the US.