The ongoing tariff dispute between the United States and Canada is continuing, bringing with it more uncertainty.
The latest announcement by the U.S. president is that Canadian goods imported into the United States will face a 35 per cent tariff beginning next month.
This is a change from late November, when a tariff of 25 per cent was imposed.
A reduced 10 per cent tariff on energy was announced on Feb. 1.
Since then, tariffs have been paused and reinstated, more than once, and Canadians are left wondering what will happen next in the ongoing tariff war.
The uncertainty does not benefit either country. When tariffs are imposed and paused as frequently as in recent months, it is difficult for any business to make plans. Adding or removing a tariff will have a noticeable effect on costs.
Canada is one of the largest U.S. trading partners with three-quarters of Canada鈥檚 exports going to the U.S. Canada is also a significant importer of U.S. goods, with 56 per cent of Canada鈥檚 imports coming from our southern neighbour.
The shifting policies and uncertainty over this issue are having huge effects on relations between the two countries.
In the past, Canada and the United States have had a strong, friendly relationship, lasting more than a century.
The tariff war, along with repeated comments from the U.S. president about bringing Canada in as the 51st American state, means the relationship is not what it was before.
Canadian businesses are looking for markets other than the United States, and for months Canadian consumers have been looking for goods and services from Canada or from countries other than the U.S.
And even if the ongoing threat of tariffs were to end immediately, it would take time to rebuild the relationship to the level that once existed.
If the volatility could come to an end, it would be possible to develop strong trading relationships once again.
However, as we have witnessed time and again, U.S. policy on tariffs has been changing numerous times.
The stability is gone.
鈥� Black Press
