Before Launching a New Trade War with Canada, Let’s Examine the Impacts of the Last One
Recent press reports suggest the United States could reinstate Section 232 tariffs on imports of aluminum from Canada, which in turn could lead to new retaliatory tariffs. A new policy brief from The Trade Partnership examines the impact of the last retaliatory tariffs on U.S. exports to Canada, both their imposition and removal. It finds that while U.S. exports fell immediately in response to new tariffs, exports did not bounce back after tariffs were removed. The Trump administration should expect similar export damage – from which exports may not recover – if it reimposes U.S. Section 232 tariffs on Canada.