So who pays the tariff on a Canadian good that has a very competitive and price sensitive market for consumer sales?
Bob you understand…if a Canadian good is selling lower than a corresponding American good and you place a tariff on it, then the Canadian good rises on par with the American good. The net result:
-Canadian company gets hurt as they will sell less
-American consumers get hurt as they will pay more
-American companies may or may not benefit as consumers will buy less of that good
People are already at the limit…if you wanna decimate the automobile industry, by all means implement your tariff and see if people will tolerate any kind of percentage increase in cars.
Trump wont do this….this is an empty threat to look tough on the world stage.
(But by all means put a tariff on Canadian lumber. I wanna see my homes’ market value fly through the roof)