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January 25, 2017

Canada, along with Mexico, is particularly heavily exposed to trade with the United States, and there is considerable speculation about how Canada should react if the United States moves unilaterally to implement protectionist policies, according to a new C.D. Howe Institute Working Paper. In “Protectionism and Retaliation” authors Dan Ciuriak and Jingliang Xiao estimate the damage that would be done by a 10 percent tariff surcharge unilaterally imposed by the United States on its trade partners – and the effects if Canada retaliated with a 10 percent tariff of its own.

Dan Ciuriak
Dan Ciuriak

Dan Ciuriak is Director and Principal, Ciuriak Consulting Inc., and Fellow-in-Residence with the C.D. Howe Institute. His areas of interest include international trade and finance, innovation and industrial policy, and economic development.

Jingliang Xiao

Jingliang Xiao is a research associate responsible for policy modelling at Ciuriak Consulting Inc.