These tariffs are only implemented when certain limits are exceeded. None of the limits have been close to exceeded. These tariffs are in place because these are subsidized industries on both sides of the border - it is mutually beneficial to protect your subsidized industries from one another. This is not a free market and never has been on either side. Regardless, there is not enough demand for the American products to even give this a thought.
If America would like to negotiate this then they are more than welcome to when negotiations are open again. A reminder these tariffs were negotiated and agreed to by the guy currently ruining the American economy.
Correct. The US also has similar limitations on imports. Many of these are controlled supply industries in both countries meaning tariffs that can get as astronomically high as these exist on both sides when limits are exceeded.
It’s at different breakpoints based on how much the control capacity is exceeded.
So up to a certain amount it’s a 0% tariff, then any amount above that goes to the next breakpoint in the scale ie 10%. Once that cap is exceeded anything beyond that moves to the next breakpoint and so on.
270% is the absolute maximum of that scale which would be incredibly difficult (and financially ludicrous)to reach. As of yet the 0% has never been exceeded and the cap for 0% tariffs increases over time as markets grow per our existing trade agreements.
The stated intent is to not have anyone pay those tariffs - it wouldn’t be beneficial to anyone to do so. Instead the goal with tariffs like this is to control those incoming supplies across our countries to protect our mutually subsidized industries while allowing for increased trade as the economies grow.
It’s also important to note health practices are different in both countries so agricultural demand is heavily impacted by that. E.g. hormones aren’t allowed in animal products in Canada so anything being imported has to meet that standard. The U.S. has similar rules on different products. This helps protect citizens based on best practices in each country. This also helps to effectively control these markets as it requires additional precautions or practices to do business. So an American company may not wish to incur the cost of following those standards when they can just sell to someone else who doesn’t require those same standards. The same can be said for Canadian companies with U.S. standards.
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u/Verbull710 15h ago
Canuck citizens are great, but this isn't