U.S. tariffs on Canadian goods could come as soon as this weekend, and one University of Guelph professor said Canada has to use diplomacy with its neighbours to the south.
U.S. President Donald Trump has threatened to impose 25 per cent tariffs on Canadian goods by Feb. 1.
Sylvanus Afesorgbor, an associate professor in the department of food, agricultural and resource economics at the university, said tariffs will impact the country’s economy.
“We should still intensify our diplomatic ties, and we have to a lot of it,” Afesorgbor said.
Melanie Joly, Canada’s foreign 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 threat of 25 per cent tariffs, which could come into effect Saturday, including by beefing up border security to meet Trump’s demands and preparing to impose retaliatory tariffs.
The federal government is also planning a stimulus package for businesses should the tariffs be implemented.
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Afesorgbor said about 70 per cent of Canada’s exports go to the U.S. and at least 90 per cent of exports from Ontario are sold in the U.S. as well, so sectors that are more dependent on the American market should receive a bailout package.
When it comes to imposing tariffs north of the border, however, he said Canada has to be very careful “we don’t shoot ourselves in the foot.”
“If we impose retaliating tariffs on goods coming from the U.S., that’s also likely to increase the price, the cost of goods here in Canada,” he said.
The U of G professor added that if the federal government wants to impose retaliatory tariffs, it has to focus on products that can be produced efficiently in Canada and be selective on which products to tax.
He said focusing on domestic production will result in no negative consequences for consumers in terms of higher prices on those products.
With the tariff threat just days away, Afesorgbor said a deal can be made between the countries, but Canada has to work together with the U.S.
He said Canada should not only use diplomacy but also look at other emerging and developing markets to sell products, such as Saudi Arabia, China and the United Arab Emirates.
“We need to intensify our export diversity. We have to look at other markets to where we can be able to sell to minimize any trade uncertainty that may arise from the U.S.,” he said.
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University of Guelph expert says Canada should use diplomacy with U.S. tariff threat
