Some countries are not divided from Trump’s tariff. Can Canada “convert the other cheek”?

In the face of the definitions imposed by US President Donald Trump, some countries have so far responded by transforming the other cheek and not taking revenge for their duties.

However, Canada is still returning to the trade war with its neighbor to the south. But it also raises the issue of whether Canada that absorbs strikes from the American tariff, although it is painful, may be better than the comprehensive economic damage resulting from the widespread trade conflict.

It is an issue, perhaps not surprising, which economists have varying opinions. Some say that Canada has no choice but to take revenge, even if the customs tariff on American goods will increase the prices of Canadians. But others suggest that these moves may have little impact on the United States

Werner Antiller, associate professor and head of international commercial policy at the University of Columbia, says Ottawa was right to re -shoot.

“Revenge is actually necessary, although it is harmful to our economy, because it makes prices higher for consumers and Canadian companies,” he said.

But Bao S. Boujolas, associate professor or economy at McMaster University, says he believes that Canada does not need to spend its time in “fighting customs tariffs”.

Instead, he says that the economy will help better by removing commercial barriers between provinces and separating the red tape that hinders some commercial agreements in Canada with other countries

“I would like to say frankly, look, let the Americans shoot themselves in the foot, allow them to destroy their companies … which depend on Canadian products, and allow them to destroy all of this. Let’s move.”

“Forced to take revenge”

Trifor Tombi, a professor of economics at Calgary University, like any tariff, says Canada’s retaliation against the United States is almost completely on Canadian consumers, and will harm the economy here, and not there.

“This does not mean that we or we should not do them, only that the decision of revenge needs to be firmly based on achieving non -economic goals,” he said, as he said in the political arena.

He believes that revenge “is more than a political action to form conversation, narration and public relations campaigns”, against, in this case, the Trump administration.

He said in an email to CBC News.

However, Canada said on Wednesday that it would discuss the definitions of $ 29.8 billion in American goods after Trump imposed a tariff on all imported steel and aluminum. This is in addition to the definitions of $ 30 billion in American goods that were already imposed after the Trump tariff last week.

Meanwhile, Ottawa threatened to tariffly on US goods worth $ 100 billion if Trump was paid through the mutual tariff on April 2.

“I think Canada is forced to take revenge” because it depends on the American market for goods targeted by Trump.

“Nearly 90 percent of Canadian steel or aluminum exports go to the United States so that Canada cannot sit and do nothing. Canada must develop some bargaining situations.”

However, some countries such as the United Kingdom, Australia and Mexico, which have declined to take revenge have their own reasons for not withdrawing the customs tariff operator.

The UK, for example, is looking for new trade arrangements after Britain’s exit from the European Union, and most importantly, is a free trade deal with the United States, he says. Also, the government of Prime Minister Kiir Starmer is looking for a kind of agreement with the United States regarding Ukraine, so it does not want to alienate Trump.

Starmer said that although all options are on the table, it will take a “pragmatic response” and do not retreat after the United States slapped customs duties on steel and aluminum imported from any country.

In Trump’s first state, Australia was able to obtain an exemption from the definitions it imposed in 2018 and may hope to get another round, says Antiller.

Derek Holt, Vice President and Head of Economics of Capital Markets for Scotiaabank, adds that countries like the United Kingdom and Australia are not in the same situation as Canada.

“It is easier for Australia and the United Kingdom to turn the other cheek because they are much less at stake, given that less trading with the United States,” he said in an email.

He says about five UK exports go to the United States and a large part of this is the financial services. Australia’s exports to the United States are only about four percent of its total exports.

Diplomatic invasions

Although Trump made Canada and Mexico the goals of his initial definitions, it seems that Mexican President Claudia Shinbom has achieved diplomatic degrees with him, while relations remained lukewarm between Canada and the United States

Outaoa has a free trade agreement with Washington and remained in talks – in an attempt to resolve a diplomatic – with the development of this crisis, said Silvanus Affinsorbur, Associate Professor at the University of Gilf at the Department of Food, Agricultural Economy and Resources.

For this reason, Affesorgbor believes that revenge is “very justified”.

“There is nothing we can do anymore,” he said. “We have exhausted every way to negotiate. So we are pushed into the wall.”

But he warns that officials need to be keen to not blame all American goods with definitions.

“You should be very selective,” Avesurgur said, adding that he believes that federal officials have experience in customs tariff imports that can be replaced by Canadian producers.

For example, it will be a really bad idea that slapped the definitions on the imports that Canada really depends on, such as medications, says Moro. But something like alcohol is actually logical.

“Canadians will not be much worse,” he said. “But American producers have now lost sales,” he said.

“Sometimes it is very clear. But at other times, it is very difficult to say,“ Well, what goods have other options? What are the goods in which the United States depends on us on the market? “” “

Until now, Canada is doing this correctly, and does not impose a blanket tariff against the dollar, but it instead focuses on areas that can reduce damage to Canadian consumers, says Antiller.

“We are looking at the sectors that have easy local alternatives, or the third country alternatives,” he said. “Everything really focuses on reducing damage.”