The Globe and Mail reports in its Wednesday, Nov. 27, edition that Donald Trump's proposed tariffs would hit the Canadian economy hard because the U.S. is Canada's largest trading partner. The Globe's Adrian Morrow and Steven Chase write that in 2023, Canada exported $592.7-billion in goods to the United States -- more than 77 per cent of this country's total exports. Canadian sectors that would be particularly affected include oil and gas, auto manufacturing, mining, and agriculture.
However, the U.S. is also expected to take an economic hit, as the tariffs would likely be paid for by U.S. importers and likely passed on to consumers in the form of price inflation. About half of U.S. petroleum imports come from Canada.
The Canadian Association of Petroleum Producers head Lisa Baiton said in a statement, "A 25-per-cent tariff on oil and natural gas would likely result in lower production in Canada and higher gasoline and energy costs to American consumers while threatening North American energy security." Ontario Premier Doug Ford on Tuesday called Mr. Trump's move "the biggest threat we've ever seen" to the country's economy. He called for Canada to retaliate with tariffs of its own if Mr. Trump follows through.
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