Supported by Donald Trump, the imposition of 10% customs tariffs on almost all imports would be devastating for Canada, says the Association of Quebec Economists.
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This group was reacting to a report published on October 8 by the Canadian Chamber of Commerce, which highlighted the pressure that the imposition of new tariffs could exert on the Canadian and American economies.
“Prices for imports into the United States would be higher, making our economy less competitive. In the end, it would also hurt Americans, because the price of consumer goods in the United States would increase, but it would hurt us even more,” explained Louis Lévesque, head of the organization’s public policy committee.
The latter is particularly concerned about the impact of this measure on the willingness of investors to invest their money in the country.
“A large country decides to use its balance of power, and that will send a message to foreign investors who could say to themselves “If I establish a factory in Canada, will it not be next year? not 10%, it’s going to be 20%, maybe it’s going to be 30%?’” he illustrated.
According to Trevor Tombe, a professor in the economics department at the University of Calgary who worked on the Canadian Chamber of Commerce report, the future American administration should learn lessons from history.
“It turns out that Mr. Trump’s recently proposed 10 percent tariffs are reminiscent of those passed by President Nixon in 1971. This policy, which was much more limited than Trump’s recent proposal, was a disaster and was quickly canceled,” he described in his study.
Watch the full interview in the video above.