Source: Cato Institute
by Scott Lincicome
“After US-Canada trade talks collapsed Friday, the United States imposed a 50% tariff on a long list of Canadian goods via the never-used Section 338 of the Tariff Act of 1930. US Trade Representative Jamieson Greer went on TV first thing Monday in an attempt to calm financial markets with some basic tariff math. He said the new action hits a small percentage of Canadian imports into the US and an even smaller share of consumption, so there’s ‘no possible way it can really affect US well-being.’Greer is basically right on the issue of the tariffs’ direct effects. The problem for both America’s chief trade negotiator and the US economy is that the new levies raise other issues that are much more important – and troubling. … First, the spat injects significant new uncertainty into both the trillion-dollar bilateral relationship and the broader global economy.” (08/27/26)
https://www.cato.org/commentary/us-canada-trade-spat-tariffs-are-not-only-problem