Quote:
Originally Posted by Jimbuna
The escalating dispute could drive firms in Mexico, EU and Canada to buy steel and aluminum elsewhere and retaliate with targeted tariffs on US goods.
Once the retaliatory measures were put in place, the situation could backfire for Trump and end up hurting American producers.
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if it lasts for years, yes.
but I view this just as a negotiating tactic that will get resolved in a matter of weeks. Trump wants to get concessions out of Canada and Mexico on NAFTA so he can claim victory and leverage that in the november mid-term election.
Again, this did not start with Trump. Ever since the original NAFTA was signed between Canada and the U.S. back in the late 80s, many american politicians felt the US gave away too much to Canada in the trade deal.
The canadian and U.S. economy are too closely integrated to be disentangled. Many Canadian politicians over the years have tried to push policies to lessen the dependence of Canada on the U.S., but it does not make economic sense.