Retaliatory tariffs are economically unwise, but politically expedient

With the United States both threatening and imposing tariffs, Canada has responded with counter-tariffs of its own. But could these measures do more harm than good?“Retaliatory tariffs are just a bad decision. They increase the prices that Canadian importers pay to bring goods into the country, and increase prices for consumers” says Vivek Astvansh, an Associate Professor of Quantitative Marketing and Analytics at McGill Desautels. “However, they do appease voters or serve the egos of some of the politicians who impose them, even if they are very unwise.”