HUNT VALLEY, Md. (TNND) — President Donald Trump’s new tariffs on Canadian goods have few fans outside the administration.
The taxes, announced Monday for a wide range of products, may impede the economic progress achieved in the U.S. over the past several months and weaken the GOP’s messaging on affordability issues it’s tried to tackle. A few congressional Republicans have reacted to the news with disregard, as have many Democrats, while others have been silent altogether.
“I’m not a huge fan of tariffs as a general rule, unless there’s a specific purpose behind it—in most cases, creating a more level playing field for America’s businesses and our economy,” Senate Majority Leader John Thune told reporters. “But I haven’t heard the rationale for this.”
The White House said in a release that its tariffs will offset the burden placed on the U.S. economy by Canada’s “discriminatory” conduct. Ottawa, the office claimed, has targeted American business through restrictions on imports like cars, alcohol and cheese.
“The unreasonable, unequal, and discriminatory actions by Canada suppress U.S. manufacturing and agricultural output, as well as investment, undermining employment and economic vitality in American communities,” the White House said. “Imposing additional duties on certain products of Canada will, among other things, expand opportunities for U.S. producers to compete within the U.S. market, revitalizing U.S. production and bringing attendant economic and societal benefits.”
It’s unclear whether Canada has targeted the U.S., which Trump has incorrectly claimed is under economic attack by countries around the world. Prime Minister Mark Carney accused his American counterpart Monday night of engaging in a unilateral offensive at the expense of his own citizens.
“This trade dispute has raised costs for families, particularly in the U.S.,” Carney said in a statement. “Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens.”
Most economists agree that tariffs raise costs for the country imposing them. Any gain in investment brought on by the taxes is usually lost by the expense of levying them.
“Tariffs reduce productivity and thereby real U.S. income (even when including tariff revenue) by reducing the efficiency of resource allocation across countries and increasing the marginal cost of investment,” researchers with Yale University’s Budget Lab said in a report earlier this year. “After-tax real incomes in turn can fall either from a rise in realized prices, holding nominal income constant, or a fall in nominal income.”
Do you have questions, concerns or tips? Send them to Ray at rjlewis@sbgtv.com.