Canada and the United States had a prolonged dispute about alleged government subsidies to the softwood lumber industry in Canada.Who loses and who gains from the situation in which Canadian governments impose taxes on Canadian exports of softwood lumber to the United States?

Question

Quizplus · Accepted Answer

When Canadian governments impose taxes on Canadian exports of softwood lumber to the United States, U.S. users of lumber (such as construction companies and consumers) lose because they have to pay higher prices for lumber. U.S. producers of lumber gain because the tax on Canadian lumber makes Canadian lumber more expensive, reducing competition and potentially allowing U.S. producers to increase their prices and market share.

Canada and the United States Had a Prolonged Dispute About