Part 5/9:

The tariffs are presented as a negotiating tactic rather than a sound economic strategy. The concern raised is that these tariffs will raise prices for consumers in both nations, leading to potential recessions. The realities of a trade war are depicted as generally harmful to all parties involved, a sentiment echoed by many economists.

Analyzing the Economic Numbers

To add clarity to the argument, detailed economic numbers were shared regarding trade between Canada and the U.S. With $400 billion worth of trade, the proposed tariffs represent a 25% increase, translating to significant potential loss for Canada’s GDP. The speaker estimates that such tariffs could drop Canada’s GDP by as much as 4.5%, propelling the country closer to a recession territory.