In an attempt to show his desire for strict trade regulations,
President Trump imposed tariffs on lumber exported from Canada to the United
States. He argued that, if NAFTA was
working as well as it should, there shouldn’t be longstanding trade disputes
about lumber and dairy products between these two countries. In the article by The New York Times it was
estimated that the United States buys 69% of Canada’s lumber exports. The
article also states that the United States likely would not be able to produce
enough lumber on its own. If the United States and Canada cannot come up with a
deal, the Canadian lumber industry could face tariffs up to 24%. Read the full
article here:
https://www.nytimes.com/2017/04/25/business/trump-trudeau-canada-trade-lumber-dairy.html?_r=0- Lorreen McCabe
The battle over timber and dairy sounds like a silly one to me for face value. I would think that those are two of the US stronger produced commodities. I guess one thing that I should keep in mind is that we too, export to other countries so when our supply is low due to shipping out more than we can afford to then we must import from other countries. And if you think about how much land Canada has to produce timber, its easy to see why they have so much timber to export. The US makes sense to ship to because its literally just across the boarder and can have several modes of transportation including rail, truck, and waterways. I feel that that the 24% tariffs will scare Canada off on other exports and could cause a small collapse of NAFTA with regards to the US and Canada.
ReplyDeleteThe article states "Canadian lumber and dairy are easy trade targets, since they represent longstanding areas of discontent between the two countries." It sounds like the tariffs could further increase discontent between the US and Canada; my guess is that Canada might start hurting considering the US buys so much lumber from them.
ReplyDelete- Kevin Rindfleisch
The Wisconsin dairy farmers have been hit hard these last few weeks by new tariff hits from Canada.
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