Friday, May 30, 2025
No Result
View All Result
CNAPS.org
  • Home
  • About
    • Why CNAPS ?
    • Advisory Council
    • Our Impact
  • Our Work
  • Contact
  • Home
  • About
    • Why CNAPS ?
    • Advisory Council
    • Our Impact
  • Our Work
  • Contact
No Result
View All Result
CNAPS.org
No Result
View All Result

Canada can beat Trump’s tariffs by waiting them out: Philip Cross in the Wall Street Journal

Rather than escalate the trade war, Ottawa should let U.S. prices increase until Americans revolt.

March 19, 2025
in North America
Reading Time: 2 mins read
A A

This article originally appeared in the Wall Street Journal. Below is an excerpt from the article.

By Philip Cross, March 19, 2025

It’s natural for Canada to respond to the barrage of U.S. tariffs by threatening retaliation. But an escalating trade war plays into President Trump’s hands and risks higher inflationary pressures in both countries. A better strategy is to let tariffs raise prices until American consumers and producers pressure Mr. Trump to reverse the damage.

There’s a myth floating around that Canada doesn’t really need the U.S., and that the answer to Mr. Trump’s aggression is simply to diversify Canada’s export market. This isn’t true. Yes, Canada should use the disruption of trade with the U.S. to diversify some exports to other countries. Limiting oil and gas exports to the U.S. would depress Canada’s export prices and cost tens of billions of dollars in lost revenue, and Canada’s ability to sell oil and gas in overseas markets has been severely restricted by its cancellation of major pipeline projects.

But Canada’s ability to diversify export markets is limited. These markets often don’t exist, even if Canada had free-trade deals with all the Group of Seven nations. Most international trade occurs within three regional trading blocs—Southeast Asia, Europe and North America. Geographic proximity is crucial, and much international trade is the movement of products between companies within supply chains. Opportunities to diversify such trade, especially Canada’s auto exports, outside North America are essentially nil…

***TO READ THE FULL ARTICLE, VISIT THE WALL STREET JOURNAL HERE***


Philip Cross, a former chief economist at Statistics Canada, is a senior fellow at the Macdonald-Laurier Institute and a contributor to the Center for North American Prosperity and Security.

Source: Wall Street Journal

Related Posts

How Did Trump Impact the Canadian Election? Brian Lee Crowley on American Thought Leaders
Media

How Did Trump Impact the Canadian Election? Brian Lee Crowley on American Thought Leaders

May 10, 2025
Media

Here is what Mark Carney must achieve on his historic mission to Washington: Alan Kessel in the Toronto Star

May 5, 2025
North America

How we lost the post-war order and got Donald Trump instead: Brian Lee Crowley

April 23, 2025
Next Post

The best response to Trump is to not lose our heads—and to keep our powder dry: Brian Lee Crowley in The Hub

Center for North American Prosperity and Security

The Macdonald-Laurier Institute (MLI) is a non-partisan 501(c)(3) organization in the US and a registered charity in Canada. CNAPS is a division of MLI.

© 2023 CNAPS. All rights reserved.
  • Home
  • About
  • Our Work
  • Contact

The Center for North American Prosperity and Security is a project of the Macdonald-Laurier Institute, Canada’s leading public policy think tank.

No Result
View All Result
  • Home
  • About
    • Why CNAPS ?
    • Advisory Council
    • Our Impact
  • Our Work
  • Contact

© 2023 CNAPS. All rights reserved.