Trump’s Tariffs with Canada

Polices and trade measures that individual countries enact end up affecting regional as well as global economics. International business can either be strengthened or weakened by certain activities ranging from politics to war and internal crushes as well as trade measure and policies. For President Trump trade war with China have affected other world economies and still, the America First Trade policy has had effects internationally. The US trade tariffs which involve tax directed towards foreign products have changed since Trump rose to power. As far as the Trump administration is concerned the tariffs are for protecting the United States domestic trade. Canada is one of the largest trade partners to the US and has been stricken by the Trump tariffs (George, 2017). The signing of the US- Mexico- Canada trade agreement saw the end of the North American Free Trade Agreement (NAFTA). NAFTA has been in existence for a long time of which the three countries have been involved in a tense relationship. The end of the NAFTA agreement might have come as a relief but Trump’s trade policyhas been unpredictable,and it brought new issues on the table.

The steel and aluminum tariffs against Canada have continued to be a significant problem affecting business and affect the relationship between the two countries. The new trade deal for North America was and is still good for the economies involved,but the Trump administration’s tariffs on the two metals are bad for Canada. It has been big issues where the prime minister for Canada took it upon himself to air his displeasure on the same during the ceremony that had been set to recognize the US- Mexico- Canada Agreement (Hadfield & potter, 2017). The tariffs came into effect on March 2018 under the Trade Expansion Act of 1962,but it did not apply to both Canada and Mexico until June last year. A good number of lawmakers have shown their concerns over the tariffs arguing that they have more negative impacts than benefits.

Any country works to benefit its course,but at times it can be blinded by situations and enact policies that are bound to backfire on them destroyed business not only for foreign companies but also for home companies. Although the restrictions still hold, the parties have been involved in a series of negotiations aimed at favorable terms for each party. By the end of 2018, there was a feeling that the tariffs will be lifted. The impatience of business and farmers with regard to lifting the tariffs can be felt with retaliation restrictions targeted on US exports such as beef and pork (Chapelievet al., 2018). Canada retaliation tariffs have seen a considerable reduction in US exports with US farmers on the losing end.

Trade tariffs and policies associated with trade restrictions are part of actions and issues that affect and influence economic situations around the world and also other global issues. As we have seen each country works to better its gain and create a favorable climate for its citizens and their businesses. The policies enacted are geared towards giving an advantage to the citizens and their economic activities. However, such policies and tariffs are at the expense of other countries. When a country feels that a trade partner has overstepped, it may decide to retaliate,and this often results to trade wars. What results is often so beneficial to the parties involved,and the repercussions are harmful. The case of Trump’s tariff with Canada is a good example. Regulations at times are inevitable,but negotiations should be considered to provide a favorable environment for all the parties involved.





Chepeliev, M., Tyner, W., & van der Mensbrugghe, D. (2018). How US Agriculture Will Fare Under the USMCA and Retaliatory Tariffs. Farm Foundation Publication.

Georges, P. (2017). Canada’s Trade Policy Options Under Donald Trump: NAFTA’s Rules of Origin, Canada-US Security Perimeter, and Canada’s Geographical Trade Diversification Opportunities. Department of Economics, University of Ottawa.

Hadfield, A., & Potter, R. (2017). Trump, Trudeau and NAFTA 2.0: tweak or transformation?.The Round Table, 106(2), 213-215.

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