Business & Economics
Master of Arts (MA)
Months after a trade war erupted along the northern border, Canada’s efforts to counter Trump's efforts are in disarray. Despite the announcement of a new North-American trade agreement, tariffs on American and Canadian goods remain in effect, and Canada’s efforts to build political support for its position in the US have failed.
“Canada did the best they could on sensitive states to the companies that are dominating in those states,” said Gary Hufbauer, senior fellow at the Peterson Institute of International Economics. But “you’ve got an administration which is very nationalistic. There are a lot of firms they don’t pay much attention to, and give them a polite brush-off. That’s the problematic part.”
Like China and the EU, the US and Canada have had their relationship strained by tariffs. But Canada’s dispute has largely fallen to the wayside, in light of Canada’s small market share and the appearance of a truce with the USMCA deal. Ironically, Canada’s effort now gives them less leverage to negotiate an end as USMCA ratification hangs in the air.
Rubin, Willa, "Canada’s tariffs on American consumer goods linger, despite appearance of trade truce" (2018). CUNY Academic Works.