University of Guelph expert says Canada should use diplomacy with U.S. tariff threat

U.S. tariffs connected Canadian goods could travel arsenic soon arsenic this weekend, and 1 University of Guelph prof said Canada has to usage diplomacy with its neighbours to the south.

U.S. President Donald Trump has threatened to enforce 25 per cent tariffs connected Canadian goods by Feb. 1.

Sylvanus Afesorgbor, an subordinate prof successful the section of food, cultivation and assets economics astatine the university, said tariffs volition interaction the country’s economy.

“We should inactive intensify our diplomatic ties, and we person to a batch of it,” Afesorgbor said.

Melanie Joly, Canada’s overseas affairs minister, has been travelling to the U.S. and Afesorgbor credited the government’s intensified lobbying for the tariffs not having been imposed.

Canada has been responding to the menace of 25 per cent tariffs, which could travel into effect Saturday, including by beefing up borderline information to conscionable Trump’s demands and preparing to enforce retaliatory tariffs.

The national authorities is besides readying a stimulus bundle for businesses should the tariffs beryllium implemented.

Afesorgbor said astir 70 per cent of Canada’s exports spell to the U.S. and astatine slightest 90 per cent of exports from Ontario are sold successful the U.S. arsenic well, truthful sectors that are much babelike connected the American marketplace should person a bailout package.

When it comes to imposing tariffs northbound of the border, however, helium said Canada has to beryllium precise cautious “we don’t sprout ourselves successful the foot.”

“If we enforce retaliating tariffs connected goods coming from the U.S., that’s besides apt to summation the price, the outgo of goods present successful Canada,” helium said.

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The U of G prof added that if the national authorities wants to enforce retaliatory tariffs, it has to absorption connected products that tin beryllium produced efficiently successful Canada and beryllium selective connected which products to tax.

He said focusing connected home accumulation volition effect successful nary antagonistic consequences for consumers successful presumption of higher prices connected those products.

With the tariff menace conscionable days away, Afesorgbor said a woody tin beryllium made betwixt the countries, but Canada has to enactment unneurotic with the U.S.

He said Canada should not lone usage diplomacy but besides look astatine different emerging and processing markets to merchantability products, specified arsenic Saudi Arabia, China and the United Arab Emirates.

“We request to intensify our export diversity. We person to look astatine different markets to wherever we tin beryllium capable to merchantability to minimize immoderate commercialized uncertainty that whitethorn originate from the U.S.,” helium said.

For the latest connected the Canada-U.S. tariff threats, delight click here.