U.S. President Donald Trump has imposed a 25 per cent tariff on most Canadian goods. A senior governmental official said they are expected to come into effect on Feb. 4.
This tariff will have significant economic consequences on both sides of the border, as the U.S. and Canada share one of the largest bilateral trade relationships in the world.
A key concern is the highly integrated supply chains between the two countries. Many goods cross the border multiple times as intermediate inputs before becoming final products. Imposing tariffs at any point in this supply chain will raise production costs and increase prices for a wide range of goods traded between the U.S. and Canada.
