United States President Donald Trump’s on-again, off-again tariffs have shaken up relations between Canada, Mexico and the U.S. After imposing sweeping tariffs on Canadian and Mexican goods on March 4, Trump has paused tariffs on some Canadian goods until April 2.
Canada immediately retaliated on March 4, imposing 25 per cent tariffs on $30 billion worth of U.S. imports, with plans to expand to $155 billion after consultation. The second round of retaliatory measures is on hold until the pause is up.
This move escalated tensions into a full-scale trade war between the two countries. In a trade war, no country wins, as Prime Minister Justin Trudeau aptly noted. Yet governments impose tariffs — essentially import taxes — because they protect domestic industries from foreign competition.
