The Brewing Trade War Between The U.S. And Canada Is Damaging, Stupid, And Utterly Pointless

Tariff is another word for tax.

Last month, President Trump slapped an arbitrary 50% tax on a variety of Canadian products worth $20 billion, such as wine, hockey sticks, cement, honey, seeds, jewelry, and perfumes.

The U.S. dredged up a never-used section of the notorious 1930 Smoot-Hawley tariff to justify these new taxes.

These exactions will, if necessary, be challenged in court.

The administration is annoyed that Canada didn't roll over when tariffs against Canada were enacted last year.

But Trump's July announcement did prompt trade talks between the two countries.

A deal looked certain this past weekend until the U.S. demanded last-minute concessions and negotiations collapsed.

Canadian Prime Minister Mark Carney declared that his country would retaliate dollar for dollar with tariffs to take effect on September 8th.

President Trump responded that come January 1st, he will impose a 50% tax on all autos and trucks and vehicle parts from Canada.

Auto parts cross the borders of Canada, Mexico, and the US numerous times before being put in a vehicle.

that 50% tariff would disrupt existing supply chains and lead to higher prices.

So much for affordability.