Incoming U.S. President Donald Trump plans to use tariffs against Canada
Every once in a while, there’s a word in the news that feels like it needs more explaining. CBC Kids News contributor Sabrina Erin uses her drawings to break it down for you.
The conversation around tariffs is getting more and more intense.
But what do you think the word tariff means?
Take a guess.
OK, let’s clear this up.
U.S. president-elect Donald Trump has been threatening Canada with a 25 per cent tariff on imported goods.
That means he wants to charge a fee on all Canadian products entering the U.S.
If he follows through, they won’t come into effect until after he becomes president on Jan. 20.
However, Canadian officials are preparing.
Tariffs can affect how much things cost people and their families.
Kids News contributor Sabrina Erin explains what tariffs are, and why countries use them ⬇️⬇️⬇️
How tariffs could affect prices
Ian Lee, who teaches business at Carleton University in Ottawa, Ontario, broke down how tariffs could affect Canadian products.
Let’s say there’s a tariff on Canadian maple syrup, for example.
If a Canadian company wants to sell its maple syrup in Canada, there would be no extra fee to do that.
But if the company wants to sell maple syrup in the U.S., then the company would have to pay a tariff (or extra tax) at the U.S. border.
To make up for the extra cost of paying the tariff, the company might choose to raise the price of their maple syrup in the U.S.
Now imagine you’re an American shopping at a grocery store. If the Canadian maple syrup is more expensive than the one produced in the U.S., you’ll probably buy the cheaper version.
This could also encourage Americans to buy things that are made in their own country, which is one of Trump’s goals.
Prime Minister Justin Trudeau, right, and U.S. president-elect Donald Trump talk before a meeting for members of an international military alliance in Watford, England, in December. Trudeau and Trump also worked together when Trump was U.S. president from 2017 to 2021. (Image credit: Frank Augstein/The Canadian Press)
This can affect us in Canada because the Canadian maple syrup company won’t sell as many bottles in the U.S.
As a result, the company could lose money, raise its prices in Canada too, or even lay off some employees.
This could affect how much your family can buy at the grocery store, or whether your parents have jobs.
Trump’s tariffs could have “catastrophic” effects on prices, jobs and the Canadian economy in general, said Lee.
But Trump’s tariffs could have a negative effect on Americans, too.
For example, American car companies use parts that are made in Canada.
A tariff on Canadian products could make it more expensive for U.S. companies to build cars, which could also make cars more expensive for Americans.
Canada prepares to fight back
Canada has been preparing its own list of tariffs on U.S. products entering Canada to get back at Trump.
A Canadian government source told CBC News that Canada could target the following American-made products:
- Steel products.
- Different types of plastics.
- Ceramics, including toilets and sinks.
- Glassware.
- Flowers.
- Florida orange juice.
Prime Minister Justin Trudeau told CNN on Jan. 9 that tariffs would hurt both Canada and the U.S.
But if Trump did charge Canada tariffs, Trudeau said Canada would be willing to fight back.
However, final decisions on retaliatory tariffs haven’t been made.
Why Trump wants to charge tariffs
In November, after Trump was elected, he threatened Canada and Mexico with a 25 per cent tariff, unless they give him something he wants: better border security.
Trump claimed Canada isn’t enforcing its border security rules, allowing illegal drugs such as fentanyl and undocumented immigrants into the U.S.
According to U.S. Customs and Border Protection, less than 20 kilograms of fentanyl were seized along the border with Canada last year, compared to more than 9,000 kilograms along the border with Mexico.
And while illegal border crossings into the U.S. have increased since Joe Biden became president, the majority of people who cross into the U.S. illegally come from Mexico, not Canada.
According to data from the U.S. Customs and Border Protection, U.S. border patrol agents encountered more than 198,000 migrants at the U.S.-Canada border from Oct. 2023 to Sept. 2024.
In comparison, they encountered more than two million migrants at the U.S.-Mexico border.
Tariffs were also part of Trump’s 2024 presidential campaign.
During the lead-up to the U.S. election, Trump said he would use money made from tariffs for “lower taxes and paying off debt.”
Have more questions? Want to tell us how we’re doing? Use the “send us feedback” link below. ⬇️⬇️⬇️
With files from Katie Simpson/CBC, Natalie Stechyson/CBC
TOP IMAGE CREDIT: Sabrina Erin/CBC, with graphic design by Marielle Torrefranca/CBC
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