Tariffs Threaten Canada's Economy: A New Study Models Two Catastrophic Scenarios

The United States' history of imposing tariffs on its trading partners is not new. President Richard Nixon implemented a 10% tariff on all imports in 1971, affecting Canada as well.

Canada's response to this was the 'Third Option', proposed by External Affairs Minister Mitchell Sharp. This option involved diversifying trading relationships and adopting an industrial policy for greater self-sufficiency.

However, the Third Option never gained momentum due to Nixon withdrawing his tariffs after several months.