Business, economics: tariffs, part 1

Self-tutoring about international trade: the tutor starts a discussion on tariffs.

Well, it seems that the US may impose tariffs on imports from Canada, perhaps by 25%. What goods actually will have tariffs applied remains to be seen. However, the idea can put an older person into a contemplative frame of mind.

I recall, back in the late 80s, when the free trade agreement between the US and Canada was being arranged, a lot of Canadians didn’t want it. “No deal” bumper stickers protested the idea of free trade between Canada and the US. Some people I knew didn’t want the free trade deal with the US, because they thought Canadian manufacturers wouldn’t be able to compete with ones in the US, leading to job losses. Moreover, they seemed to see free trade with the US as a threat to Canadian sovereignty. Nonetheless, free trade began between Canada and the US January 1, 1989. Today, some Canadians seem worried about losing free trade.

It seems, just at a glance, that a tariff on fossil fuels will cost the American manufacturer and the American consumer. One could suppose that a tariff on copper, once again, would discourage American manufacturing.

Canada and the US are both able to be self-sufficient; the only question is, how much would life change, in either country, to achieve it.

Source:

finance.yahoo.com

international.gc.ca

international.gc.ca

trade.gov

Jack of Oracle Tutoring by Jack and Diane, Campbell River, BC.

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