U.S. President Donald Trump has threatened or announced sweeping tariffs on Canadian exports to the U.S., as well as separate tariffs on metals which might be cumulative. Economists in both countries are unanimous in stating that this policy would be very harmful to both economies.  

American tariffs on Canadian goods would make them more expensive to American consumers and businesses, which means less of them being bought. Retaliatory tariffs in Canada would make American goods more expensive to us. The net effects would be economic hardship in both countries. Industries downstream would be affected too – a steel tariff would not only drive the price of steel up but everything that uses a steel product in its manufacture. Almost everyone in Canada would feel the negative effects of tariffs. 

The Business Data Lab of the Canadian Chamber of Commerce estimates that a 25% tariff levied on Canadian imports to the United States would cause a –1% drop in U.S. GDP and a –1.8% drop in Canadian GDP, leading to economic costs per person of $800 USD to every American and $1,300 CAD to every Canadian. 

If the Canadian government enacted retaliatory tariffs, as proposed, the shock would be a loss of –1.6% of U.S. GDP, costing every American $1,300 USD, and –2.6% of Canadian GDP, costing every Canadian $1,900 CAD per year. 

The most heavily impacted sectors would be energy, autos, mining, pharmaceuticals, chemical and forestry products. If no exemptions were granted, this policy could push Canada’s economy into recession by the middle of 2025. 

Tariffs between the USA and Canada would benefit nobody. We categorically oppose harmful trade tariffs such as these, which serve no positive economic purpose and would impoverish both countries. 

2025-ongoing (the GNCC also opposed tariffs between 2016 and 2020)