I’m confused friend.
The article you linked to says:
… Canadian lumber producers would not be able to absorb this, the price of lumber will adjust upwards ….
Is that not, quite literally, a direct contradiction of your earlier statement that:
90% of the tariffs will be absorbed by Canadian companies
And if the price increases, is that not the consumer paying the tariffs?
Ummm no.
In the real world consumers ultimately end up paying the tariffs.
Domestic suppliers have a tendency to raise prices is response to increased demand and decrease competition from imports.
When Trump implemented a tariff on Washing Machines in 2018 during his first term. The price of imported washing machines went up, the price of domestic washing machines went up, the price of dryers… which weren’t tariffed went up.
Eventually it did led to more washing machines and dryers being manufactured domestically. Which did lead to a small increase manufacturing in jobs. But it was a net loss for the consumers.
Tariffs function as a flat tax on goods. Like all flat taxes this benefits the wealthy and hurts poor and the working class.
No one should ignore Trump’s tariff threats. Tariffs would hurt the economies of both countries involved. Literally no one wins in a trade war.
The last time America passed large blanket tariffs like the kind Trump is threatening was the Smoot–Hawley Act of 1930. Which had the effect of reducing both imports and exports by almost 2/3 and was broadly considered to have significantly prolonged the Great Depression.
I’m not sure why Trump thinks tariffs are a good idea. He talks about it like it’s a way to get other countries to pay money to the US… but that’s not how tariffs work. Tariffs cause inflation for the US consumer, which is bad for the economies of both the USA, and the country being tariffed.
I suspect Trump framing of this as “external” revenue will be used to justify income tax cuts which will predominantly benefit the wealthy in the US and the expense of both middle class in both countries.
Countries being threatened by Trump should focus on diversifying their trade partners to mitigate the damage,
Americans should be calling their representatives and demanding they put a halt to this nonsense.