Skip to Content Subscribe My Account Manage My Subscriptions FAQ Newsletters Canada Canadian True Crime Canadian Politics Health World Israel & Middle East Financial Post NP Comment Longreads Puzzmo Diversions Comics NP News Quiz New York Times Crossword Horoscopes Life Eating & Drinking Style Sponsored Play for Ontario Travel Travel Canada Travel USA Travel International Cruises Travel Essentials Culture Books Celebrity Movies Music Theatre Television Business Essentials Advice Lives Told Tails Told Shopping Buy Canadian Home Living Outdoor Living Kitchen & Dining Tech Style & Beauty Personal Care Entertainment & Hobbies Gift Guide Travel Guide Amazon Prime Day Deals Savings National Post Store More Sports Hockey Baseball Basketball Football Soccer Golf Tennis Driving Vehicle Research Reviews News Gear Guide Obituaries Place an Obituary Place an In Memoriam Classifieds Place an Ad Celebrations Working Business Ads Archives Healthing Epaper Manage Print Subscription Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ Newsletters Canada World Financial Post NP Comment Longreads Puzzmo Diversions Life Shopping Epaper Manage Print Subscription HomeNP CommentCarney's retaliatory tariffs 'are very much a tax on ourself': Trevor TombeThe University of Calgary economist joins Rob Breakenridge to discuss the impact of the government's trade measuresLast updated 33 minutes ago Just when it seemed like a trade deal was close at hand, the Canada-U.S. trade relationship has taken a sharp turn for the worse. The new, higher U.S. tariffs on Canadian goods have come into effect, and Canada has officially confirmed the retaliatory tariffs that will come into effect on Sept. 8. So what will all of this mean for the Canadian economy? And is our retaliation worth the cost that it will impose on our economy? The National Post’s Rob Breakenridge speaks with Trevor Tombe, professor of economics at the University of Calgary and director of fiscal and economic policy at the School of Public Policy, about the economic consequences of this escalating trade war. As Tombe outlines, tariffs are essentially a tax, meaning Canadian consumers and businesses will bear much of the cost of Ottawa’s retaliation. The same, though, is true of the aggressive American tariffs. We’ll take a closer look at what the fallout from this trade war could look like, as well as the sort of tax reform the Carney government could deploy to mitigate the damage, while still boosting Canada’s competitiveness and productivity.Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Accountor Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.