The intended gains from Canadian tariffs and other trade restrictions can backfire if foreign governments retaliate by imposing additional trade restrictions on Canadian goods sold in their countries.

Question

Quizplus · Accepted Answer

This statement is true as imposing tariffs and trade restrictions on other countries can lead to retaliation by those countries, ultimately harming Canadian businesses that rely on exporting their goods abroad. This can result in a cycle of trade restrictions and retaliation, ultimately hurting the overall economy.

The Intended Gains from Canadian Tariffs and Other Trade Restrictions