Consumers will pay the price of a trade war between US & Canada: CEI analysis

Today, Canada announced retaliatory tariffs against the US, ranging from 15 percent to 50 percent on approximately $20 billion worth of American imports. CEI senior economist Ryan Young says this action won’t change President Trump’s mind on tariffs but will hurt consumers in both countries financially.

“Trade wars have no winners. President Trump’s spat with Canada is no exception. Trump has shown that he will raise tariffs whenever he feels like it unless Congress or Courts stop him.

“Canadian Prime Minister Carney’s retaliatory tariffs come from understandable feelings of frustration and betrayal but will not change Trump’s behavior. Restraint is difficult in the face of such taunting but is probably the right thing to do.

“In the US, Congress and the courts should add their own restraints on presidential taxing powers. Congress should repeal statute sections delegating tariff-making powers to the president, as outlined in CEI’s Agenda for Congress. And courts should continue to strike down unconstitutional tariffs.

“In the meantime, American and Canadian consumers and businesses will pay more for cars, energy, food, and other products.”