Fight fire with fire

Todd Hirsch, chief economist at the Canada West Foundation, argues that, if the Canadian government is looking escalate a trade war with the U.S., it could send a pretty sharp body blow to the Americans with a tariff on the very thing Americans are taxing Canadians with.

Why not set an export tax on top of the US tariff? This would drive lumber prices up even higher and deliver a punishing blow to the pocket books of American consumers and homebuilders. The taxes collected could be redistributed back to the Canadian producers. In the mean time, the federal government could work aggressively to expand lumber exports to other markets like China, perhaps offering export credits or subsidies to spur on trade diversification.”

 

 

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