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How Canada can hit the U.S. where it hurts in fight against Trump’s tariffs [Video]

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Canadian Economy and Markets

If Canada seeks to retaliate over U.S. president-elect Donald Trump’s tariff threat, the government should hit the U.S. where it would hurt economically and politically, some trade experts suggest.

The challenge would be to “find some iconic U.S. item … that would resonate with Trump’s supporters, or the constituencies he cares about, which if Canada put tariffs on them, it will get a lot of notice in the U.S,” said Gary Hufbauer, a non-resident senior fellow at Peterson Institute for International Economics.

Trump has threatened to impose 25 per cent tariffs on Canadian and Mexican goods unless both governments tighten their borders to prevent the flow of drugs like fentanyl and illegal migrants into the U.S. But his threat has raised questions as to whether Canada has any kind of leverage to squeeze the U.S. and prevent such tariff action.

“It’s unclear what Canada can do going forward,” wrote Derek …

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