Canada faces 'collateral damage' in escalating U.S.-China trade war

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Canada faces 'collateral damage' in escalating U.S.-China trade war


Mike Blanchfield, The Canadian Press</span>
Published Sunday, July 15, 2018 5:37PM EDT

OTTAWA - Grim scenarios of collateral damage for Canadian consumers and businesses are emerging in response to escalating the U.S.-China trade war.

The Trump administration has taken aim at China by imposing a 25 per cent tariff on goods worth U.S. $34 billion, but the worst is still on the horizon.

The U.S. has announced a further round of tariffs on $200 billion worth of Chinese goods that could go into effect towards the end of the summer, after Congress takes a closer look at the implications in a round of hearings in five weeks.

All of that amounts to more economic pain for Canadian consumers and businesses, which are already coping with the effects of their country's own trade war with the U.S. over President Donald Trump's imposition of steel and aluminum tariffs on Canadian imports.

Trade experts and analysts say it's too early to predict which specific products and sectors would be hit the hardest if the next round of U.S. tariffs on China are imposed.

But trade specialists say that with so much of Canada's manufacturing sector reliant on Chinese products -- bits and pieces that wind up in finished items made in Canada -- there will be unavoidable consequences.

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