Since November, President Donald Trump has threatened to impose broad 25 per cent tariffs on Canadian goods. He’s repeatedly claimed the country has no need for Canada’s exports — cars, lumber, oil and food products in particular — because America makes “the same products on the other side of the border.”
Experts predict the ripple effects of a trade war could be crushing for both economies. Canadian and American farmers, who have long relied on a steady exchange of crops, equipment, fertilizer and other agricultural goods, are bracing for impact.
Canada is an important trading partner, both as a customer and as a supplier of crucial inputs like potassium fertilizer.
That’s wishful thinking. It won’t last though; production will go down and prices will go back up. And while the prices are down the producers suffer. And when production goes down there’s less money in the economy and we call that a recession.
Yeah fair enough. It is wishful thinking. That being said I also hope the recession leads to some deflation over time.