The chief economist with the Independent Contractors and Businesses Association said today is a dark day in the history of Canada-U.S. relations and trade policy, as the country we thought to be our closest friend and ally essentially declared economic war.
Jock Finlayson said the 25 per cent tariffs (with a 10 per cent carve-out for energy products) represent one of the the biggest shock to the Canadian economy he’s seen in his lifetime—second only to the very start of the COVID-19 pandemic.
“Regardless of how it plays out it is going have a lasting impact on the way I think Canadians think about the United States and our relationship.”
He suggested Canadian policymakers are scrambling to respond to something many people doubted could ever become a reality. noting the federal government
“Retaliation sounds like a positive thing, and maybe if it leads to a negotiated settlement in the near term, it is a positive thing, but in the meantime, it is actually taking a further toll on the economy nationally and here in B.C.”
Politically speaking, Finlayson said prime minister Justin Trudeau is a walking corpse, which sets the next prime minister to jump into negotiations without prior involvement. He said it will be important to sort out our domestic political situation if we hope to end this trade war as soon as possible.
He said these tariffs are a huge blow to the Canadian and provincial economy, suggesting they will be more harmful the longer they are implemented and could mean the difference between growth or a recession.
Finlayson was on CFAX 1070 with Al Ferraby this morning: