DAYTON — The trade war between the United States and Canada is escalating as both nations implement new import restrictions and retaliatory measures.
Canada imposed tariffs on hundreds of American goods on Tuesday, while the White House announced upcoming bans on Canadian imports.
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The Canadian tariffs took effect after trade negotiations between the two countries broke down last month. The duties apply to American steel, aluminum, cheese, appliances, clothing, cosmetics, and farm equipment.
However, Canada removed road salt from its tariff list, leaving a crucial winter supply available for states like Ohio.
Rising costs remain a primary concern for consumers as the trade dispute continues. Alexis Stelmack, a Dayton resident, expressed worry about how price increases will impact everyday budgets. “If the prices are going up, no one’s going to afford it,” Stelmack said.
Riley Dugan, a professor at the University of Dayton Business School, cautioned that trade restrictions will negatively impact consumers. “Tariffs are a bad idea, bad economic policy, bad especially for consumers,” Dugan said.
He pointed out the intricacies involved in moving products between the two countries, adding that “all these businesses that coordinate so effectively between borders to get goods from where they’re maybe sourced to in consumers’ hands in the matter of maybe just a few days, but it’s a really complicated, really difficult process.”
Dugan noted that consumers should not expect costs to decline rapidly due to the long-term strain placed on commercial trade networks. “What tariffs do is not only raise costs for consumers, but a lot of these governmental actions are harming those relationships that in many instances have taken years to build,” Dugan said.
Canadian economic experts have also raised concerns regarding the strategic value of counter-tariffs. Michael Devereux, an economist and professor at the University of British Columbia, suggested that retaliatory policies may cause more harm domestically.
“To be honest, there is little economic case for retaliation. Retaliation hurts Canada, uh, probably more than, in fact, than it hurts the US. Uh, this is not really an economic argument,” Devereux said.
The White House ban targeting Canadian dairy products, alcohol and motorcycles is scheduled to go into effect on Sept. 29.
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