"Canadian CEOs: U.S. Tariffs a 'Game of Chicken'
1min read Canadian business leaders are expressing growing frustration with the ongoing trade tensions between the United States and Canada, with one CEO likening the situation to a "game of chicken" that needs to stop. The comments come as the Trump administration imposes 25% tariffs on all imports from Canada and Mexico, effective immediately.
The CEO, who wished to remain anonymous, told me that he is already trying to reduce his exposure to the U.S. market as much as possible, regardless of whether the tariffs are lifted or not. He noted that the uncertainty created by the ongoing trade dispute is making it difficult for businesses to plan for the future.
The Trump administration has stated that the tariffs are aimed at addressing drug trafficking and illegal immigration. However, Canadian Prime Minister Justin Trudeau has vowed to retaliate with 25% tariffs on $20.7 billion worth of U.S. imports, effective immediately.
Executives surveyed by EY found that half said they would be willing to pass on up to two-thirds of the added costs from tariffs onto their consumers. This could lead to higher prices for consumers and potentially hurt economic growth in both countries.
In response to the tariffs, President Donald Trump has granted a one-month exemption on his stiff new tariffs on imports from Mexico and Canada for U.S. automakers. However, it remains to be seen whether this will be enough to mitigate the impact of the tariffs on businesses and consumers.
China has also retaliated against the new tariffs, with the Chinese government announcing that it will impose 25% tariffs on $50 billion worth of U.S. goods. The ongoing trade dispute between the U.S. and China has already led to a slowdown in economic growth in both countries, and the new tariffs could exacerbate this trend.
As the trade tensions continue to escalate, businesses on both sides of the border are calling for a resolution to the dispute. The Canadian CEO's comments reflect a growing sense of frustration among business leaders, who are increasingly concerned about the impact of the tariffs on their operations and the broader economy.
