Trudeau decided to go ahead with retaliatory tariffs even though Trump’s order includes a mechanism to escalate the rates if Canada retaliates against the U.S.
At this point it’s probably good if he continues with more tariffs. If these were all suddenly removed tomorrow his base would still believe he knows good economic policy. More tariffs will continue to hurt the economy decisively showing them how bad these isolationist policies are.
Obviously the economy will be hurt by tariffs, but that’s the point and a worthwhile sacrifice for a sustained healthy economic policy in the future.
At this point it’s probably good if he continues with more tariffs. If these were all suddenly removed tomorrow his base would still believe he knows good economic policy. More tariffs will continue to hurt the economy decisively showing them how bad these isolationist policies are.
Obviously the economy will be hurt by tariffs, but that’s the point and a worthwhile sacrifice for a sustained healthy economic policy in the future.