Economist Peter Schiff criticized Canadian Prime Minister Mark Carney‘s decision to impose retaliatory tariffs on U.S. goods amid its escalating trade war with the U.S.
Schiff took to X on Tuesday and highlighted that Carney’s decision to impose 50%, 25%, and 15% tariffs on about 700 U.S. products was a direct response to President Donald Trump‘s 50% tariffs on certain Canadian goods. The economist opined that while this might be a good political move for Canada, it would ultimately harm its economy.
“This may be good politics for Carney, but it’s bad economics for Canada,” he wrote.
Canada Slaps Retaliatory Tariffs on The US
Canadian Finance Minister François-Philippe Champagne announced the tariffs on Tuesday, saying they would cover roughly $20 billion of U.S. goods. Existing tariffs on U.S. steel and aluminum will double to 50%, while several U.S. products will face tariffs ranging from 15% to 50%. The measures take effect on September 8.
Later, Carney also announced the move and called the U.S. tariffs “unjustified.” He also stated that Canada is adding $7.5 billion in new support for affected workers and businesses, on top of nearly $25 billion already allocated since earlier U.S. tariffs began.
Concern Over Rising Prices for Americans
This move is seen as a retaliation against Trump’s planned 50% tariffs on Canadian autos, trucks, auto parts, and steel. Schiff had previously warned that Trump’s tariffs would hit American consumers hard, making goods that Americans rely on “vastly more expensive” to buy. He further argued that these tariffs would intensify the “government-created cost of living crisis”.
Senate Minority Leader Chuck Schumer (D-N.Y.) and other U.S. Democrats criticized Trump’s tariffs on Canadian goods, warning they could raise prices for American consumers, manufacturers and farmers. Schumer called the policy “economic warfare” against a close U.S. ally and urged Republican lawmakers in states heavily dependent on Canadian trade to oppose the tariffs. Meanwhile, Illinois Gov. JB Pritzker stressed Canada’s importance as a major trading partner for his state.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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