Tariffs

• What percentage of tariffs did President Trump impose on imports from Canada and Mexico on February 1, 2025?

  25%
• What percentage tariff was placed on energy resources like oil and natural gas?

  10%
• What was Canada's response to the U.S. tariffs imposed on February 1, 2025?

  Canada announced 25% tariffs on $30 billion U.S. goods
• What significant action did Ontario Premier Doug Ford take in response to the trade dispute?

  Cancelled a $100 million contract with Starlink
• How do tariffs disrupt established supply chains in the U.S.?

  They increase costs for U.S. manufacturers reliant on imports
• What effect might retaliatory tariffs from Canada have on U.S. consumers?

  They may lead to higher prices on affected goods
• What potential impact could prolonged trade tensions have on U.S. economic growth?

  They could slow GDP growth by dampening investment
• What challenges do Canadian exporters face due to the trade dispute?

  Reduced access to the U.S. market
• How does the trade conflict introduce economic uncertainty for Canada?

  It affects investment decisions and economic planning
• What could be the consequence of Ontario's actions, such as cancelling contracts and banning U.S. companies?

  They could lead to retaliatory measures from the U.S.
• What is a common consequence of protective tariffs in trade disputes?

  They often lead to tit-for-tat measures and trade wars
• How do tariffs affect consumer prices?

  They can result in higher prices for consumers
• What are the market distortions caused by protectionism?

  They lead to inefficiencies and reduced economic welfare
• How do tariffs disrupt global supply chains?

  They affect production and innovation due to barriers
• What historical precedent is mentioned regarding protectionism?

  The Smoot-Hawley Tariff Act of the 1930s
• What are the risks associated with protectionism in trade disputes?

  • Retaliation leading to trade wars
  • Increased consumer costs
  • Market distortions and inefficiencies
  • Disruption of global supply chains
  • Historical evidence of economic downturns
• What are the potential negative outcomes of the ongoing U.S.-Canada trade dispute?

  • Retaliatory tariffs
  • Increased consumer prices
  • Market inefficiencies
  • Economic risks for both nations
  • Need for collaborative resolution approaches