To respond to U.S. tariffs, Canada should hit Trump where it

[Oscar]

To respond to U.S. tariffs, Canada should hit Trump where it hurts

[ https://www.policyalternatives.ca/news- ... -it-hurts/ ]

Export duties as economic leverage and insurance policy in a Canada-U.S. trade war - January 17, 2025 - Stuart Trew - CCPA

EXCERPT: "Export taxes on energy would show Trump we are serious about defending our sovereignty. Canada’s use of both retaliatory tariffs and export taxes or export restrictions—limiting the flow of energy or critical minerals to the U.S.—would be fully compliant with World Trade Organization rules and could be justified in a CUSMA dispute as responses to the threat to Canada’s essential security that Trump’s 25 per cent tariff would create.

For maximum effect, however, Canada should coordinate whatever retaliatory strategy it develops with Mexico, the European Union and other countries. The U.S. economy is in a better position than either Mexico’s or Canada’s on their own to weather a prolonged trade war. But even Trump would find it difficult to justify a two- or multi-pronged counterattack from America’s largest trading partners."

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