this post was submitted on 07 Nov 2024
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So in your example, I guess the tariffs don’t apply to Canada? Because the proceeds of tariffs go to the government of the country charging them.
I'm not sure what you're asking. If you're referring to softwood lumber the profits of Canadian lumber companies were at record levels because the US needs Canadian softwood lumber with or without tarrifs. The tarrifs didn't affect sales at all so with the increased demand despite the tarrifs Canadian companies didn't suffer at all. US consumers spent more and the money went to the US government which presumably gave some of the money to uncompetitive US softwood lumber companies to subsides their unprofitable operations. It's a tax on US consumers.
Canadian softwood lumber companies pay a stumpage fee to sustainably harvest softwood on public land. US softwood lumber companies pay much higher prices to harvest lumber mostly on private land. It's all about extracting the highest profit for the most wealthy people. Canada has a better system and the US is salty about it. The US has lost at the WTO every time but refuses to accept the result so it ignores its treaty obligations and just forges ahead with the illegal tarrifs which hurt US consumers.