Trump’s plan to increase steel, aluminum tariffs on Canada not a winning move: CEI analysis

President Trump declared today he will increase planned steel and aluminum tariffs against Canada in a tit for tat response to Canada’s recent imposition of an electricity surcharge on U.S. consumers. It’s a no-win proposition, says CEI Senior Economist Ryan Young:

“When you place a tariff on a country’s goods, they will nearly always retaliate. We went through this four times with China in Trump’s first term, and twice so far this term. Now the same story is playing out with Canada.

“Canada raised its trade barriers in retaliation to Trump’s opening move. Trump has started round two today by announcing another tariff rise. We’ll see where it goes from there.

“Meanwhile, steel-using American industries such as autos and construction will face higher costs and pass most of these costs on to consumers. Today’s news will also not help growing recession fears.

“Sometimes the only way to win is not to play. This is true of nuclear war, and it is true of tariffs.”