A Canadian tariff on French wine will likely benefit Canadian wine producers,and the Canadian government harms both Canadian wine drinkers and French wine producers by increasing tax revenue.

Question

Quizplus · Accepted Answer

A tariff on French wine would make it more expensive for Canadian consumers to purchase, making Canadian wine a more attractive option. This increased demand could benefit Canadian wine producers. However, the increased tax revenue collected by the Canadian government would ultimately be coming out of the pockets of Canadian wine drinkers and French wine producers who are now facing a disadvantage in the Canadian market. So while Canadian wine producers may benefit, the overall impact of the tariff is negative.

A Canadian Tariff on French Wine Will Likely Benefit Canadian