The Canadian government, lining the pockets of its dairy producers, imposes high tariffs on American dairy imports. That forces Canadians to pay higher prices for dairy products.
For example, Canadians pay $5.24 for a 10.5-ounce block of cheddar. In Washington, D.C., that same amount of cheddar sells for $3.64. Canadians pay $3.99 for a 1-pound container of yogurt. In Washington, D.C., you can get nearly twice as much yogurt for a little over $4.
It’s clear that the Canadian government’s tariffs screw its citizens by forcing them to pay higher prices for dairy products.
What should the U.S. response be to Canada’s screwing its citizens?
If you were in the Trump administration, you might propose imposing tariffs on soft wood products that Americans import from Canada—in other words, retaliate against Canada by screwing American citizens. Canadian lumber—such as that from pine, spruce, and fir trees—is used in U.S. homebuilding.
Guess what tariffs on Canadian lumber do to home prices. If you answered that they raise the cost and American homebuyers are forced to pay higher prices, go to the head of the class.
This retaliation policy is both cruel and not very smart. It’s as if you and I were in a rowboat out at sea and I shot a hole in my end of the boat.
What should be your response?
If you were Secretary of Commerce Wilbur Ross or Secretary of the Treasury Steven Mnuchin, you might advise retaliating by shooting a hole in your end of the boat.
If I were president, I’d try to persuade officials of other countries not to serve special producer interests by forcing their citizens to pay higher prices. But if they insisted, I’d say, “Go ahead, but I’ll be damned if I’ll do the same to Americans!”
Read the full story from The Daily Signal
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