U.S. President Donald Trump doubled tariffs on steel and aluminum imports to 50%, disproportionately affecting Canada. While some, like Ontario Premier Doug Ford, called for immediate retaliation, Prime Minister Mark Carney has adopted a pragmatic approach, choosing not to impose new counter-tariffs and toning down rhetoric. The author, Fraser Johnson, argues this non-retaliation is the correct strategy, as counter-tariffs are ineffective, raise consumer prices, and punish Canadian businesses. He believes U.S. tariffs are unsustainable due to integrated North American supply chains and that patience is required for negotiations.
Opinion: Carney was right to not retaliate against Trump’s latest tariffs
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U.S. President Donald Trump doubled tariffs on steel and aluminum imports to 50%, disproportionately affecting Canada. While some, like Ontario Premier Doug Ford, called for immediate retaliation, Prime Minister Mark Carney has adopted a pragmatic approach, choosing not to impose new counter-tariffs and toning down rhetoric. The author, Fraser Johnson, argues this non-retaliation is the correct strategy, as counter-tariffs are ineffective, raise consumer prices, and punish Canadian businesses. He believes U.S. tariffs are unsustainable due to integrated North American supply chains and that patience is required for negotiations.
Trending- 1 March and early April: Canadian federal government initially imposed retaliatory tariffs.
- 2 Last month (May): Oxford Economics report released.
- 3 Last week (early June): U.S. President Donald Trump doubled tariffs on steel and aluminum imports to 50%.
- 4 May: Ivey Purchasing Managers Index contracted for the second straight month.
- 5 Current: Prime Minister Mark Carney adopts a pragmatic approach, refraining from immediate retaliation.
- Increased tariffs on Canadian steel and aluminum
- Economic uncertainty and investment hesitancy in Canada
- Plunging exports to the U.S.
- Ticking up unemployment rate in Canada
- Potential economic slowdown/recession in Canada
What: U.S. President Donald Trump doubled tariffs on steel and aluminum imports to 50%, primarily affecting Canada. Canadian Prime Minister Mark Carney has chosen not to retaliate with counter-tariffs, a shift from previous responses.
When: Last week (Trump doubled tariffs); March and early April (initial Canadian retaliatory tariffs); last month (Oxford Economics report released); Monday (Ivey Purchasing Managers Index contracted for second straight month in May).
Where: Canada, United States, Washington (D.C.), London, Ont. (Western University).
Why: Trump's tariffs are aimed at protecting U.S. industries. Canada's shift in strategy under Carney is due to the ineffectiveness of previous retaliatory tariffs, concerns about rising costs for Canadian consumers, and a belief that the U.S. tariffs are unsustainable given integrated supply chains.
How: Trump doubled tariffs. Carney's government has exempted products from counter-tariffs and toned down rhetoric. The author advocates for negotiation and patience rather than escalation.