The idiocracy behind the trade war

Many people are voicing out for the Prime Minister of Canada to keep a stance on the USA and impose tariffs as a retaliation for the President’s Trump actions to impose tariffs on Canadian steel and aluminum.

The media is calling it the trade war.

Radio stations and social media are full of different comments regarding the fact that Canada should impose tariffs and some are even calling on boycotting US products.

But aside ideology and patriotism let’s take a look what will it mean for Canadian consumers if tariffs were to be implemented on US products.

First our government will be collecting the tariffs imposed on these products.

Importers, which are Canadians, will include that cost in the selling price which means the price of the imported product will increase. Distributors and retailers will add up to it taking advantage of the situation and blaming the tariffs in order to make more profit.

So the price at the checkout will in most cases double.

Secondly by boycotting US products sold in Canada we’re not really hurting the US but the Canadian businesses.

How?

Simple. Canadian businesses are those who are importing US products into Canada and most of them have contracts. If they don’t sell they will be stuck with inventory and eventually will end up in losses and even to closing down operations and bankruptcy.

That would lead to unemployment of many people working into logistics, importing and distribution.

So before we call out for government actions think who would really lose out of this “trade war”.

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