Imposition of customs tariffs: “It will hurt us more”

The Association of Quebec Economists says imposing 10% customs tariffs on almost all imports, backed by Donald Trump, would be disastrous for Canada.

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The group was responding to a report published Oct. 8 by the Canadian Chamber of Commerce that highlighted the pressure of new tariffs on the Canadian and American economies.

“The prices of imports into the United States are high, making our economy less competitive. In the end, it hurts Americans too, because the cost of consumer goods in the United States goes up, but it hurts us more,” explained Louis Levesque, head of the organization's public policy committee.

The latter is particularly concerned about the impact of this move on the willingness of investors to invest their money in the country.

“A big country decides to use its balance of power, and that sends a message to foreign investors who can say to themselves, 'If I set up a factory in Canada, won't it be 10% next year? 20%, maybe it will be 30%?'' he explained.

According to Trevor Tombey, a professor in the economics department at the University of Calgary who worked on the Canadian Chamber of Commerce report, future American administrations should learn lessons from history.

“Mr. Trump's recent proposed 10 percent tariffs turn out to be reminiscent of those approved by President Nixon in 1971. The policy was far more restrictive than Trump's most recent proposal and was quickly repealed,” he explained. study

Watch the full interview in the video above.