Summary
Trump signed an executive order imposing 25% tariffs on Canadian and Mexican imports—excluding Canadian energy at 10%—plus additional duties on Chinese products.
In response, Prime Minister Justin Trudeau announced a 25% duty on $155 billion in U.S. goods, beginning with $30 billion in tariffs Tuesday.
Mexican President Claudia Sheinbaum indicated reciprocal tariffs, rejecting claims that Mexico tolerates criminal groups trafficking fentanyl and insisting on respect for sovereignty.
Experts warn these tit-for-tat measures could drive up costs, disrupt supply chains, and mirror the previous U.S.-China trade war, possibly harming security.
They very obviously hurt both so long as there’s any demand elasticity and especially when there are alternatives sources for the products .
So, is Canada going to import what it gets from the US (it’s only geographic neighbour) from elsewhere?
If the answer is “no, not without at least a 26% jump in cost” then the tariff is a bad response.
Would you rather us bend over and take it?
Fuck America. You asked for this. Reap what you sowed. Unlike your trifling ass back home we are unified here. You have made us stronger as a nation.
Bend over and take what? Trumps declarations have no effect on Canada.
Canadians pay Canadian tariffs on US imports. Trump is fucking America already with his tariffs. Canada mirroring them gives Trump what he wants.
Please find an adult and ask them to explain general economics to you and in the meantime look up the impact of tariffs and trade wars.
Canada doing nothing gives Trump what he wants. Fighting back with our own Tariffs is the next step. Make no mistake this is a war. Not all war is fought with guns.
Explain how demand elasticity affects both countries please. I expect Trump uses these tariffs as a scare tactic for countries who depend greatly on exports to America, but i don’t know how elasticity of demand plays in.
Tariffs will drive the prices upward but consumers will still be compelled to make those purchases for a time, which is to say that they will just bite the cost because the alternative is less desirable. This demonstrates a lack of equilibrium between price and demand. In a non-elastic scenario, the rise in price would directly correlate to a decrease in demand.