We may see the reintroduction of tariffs across a range of products traded between the U.S. and Canada.
For much of the post-World War II period, the U.S. auto industry had an effective oligopoly on U.S. sales—quality plummeted and prices soared.
Ironically, when it comes to imported goods, Trump’s concern seems to be that prices are too low.
Canada seemingly faces a U.S. administration that subscribes to a naïve mercantilism.
Approximately 20 per cent of Canada’s GDP comes from exports to the U.S.
Canada raised tariffs in the 1930s and sunk into the Great Depression.
Canada, heavily dependent on trade with the U.S., likely stands to lose if campaign hostility towards free trade becomes a reality.
In any U.S.-led tariff-driven trade war, Canada would be collateral damage.
Investing abroad makes home-country companies more efficient, thereby enabling those companies to grow faster than they otherwise would.