US president Donald Trump has decided he will proceed with a big tax hike on American consumers with the implementation of tariffs on imports from Canada and the US. And, it would appear, the Canadian government is going to follow suit and impose similar financial penalties on Canadians buying goods imported from the States.
This story can be a bit confusing. While Trump is imposing tariffs on Canadian goods, it is actually Americans who will be paying. Think of it as an import tax. Once the cost of these goods starts to rise, there will be pressure in the US to find alternate suppliers – places other than Mexico or Canada – to source these products.
But it is Americans who will pay more until then.
Conversely it looks Canada is going to retaliate so we should expect the cost of some US imports to go up or taken off the shelf, products such as booze. However, Ottawa has not told us what they will target but it will be aimed at Republican states for maximum impact.
