Trade conflict is costly to all parties. Canadian and Mexican trade retaliation can deny tariff-related wins for American
workers. Blunt retaliation could go so far as to eliminate all the take-home pay gains in 40 U.S. states and make
whatever gains occur elsewhere barely noticeable. Tariff-induced higher prices are a further drag on American families.
Canada and Mexico would take a strong hit from blunt retaliation, but they can use smarter approaches and
demonstrate the limits of America First Trade Policy for U.S. workers.
Authors
Simon Evenett, Marc-Andreas Muendler
Date Published
03 Mar 2025
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