Daily Archives: November 15, 2025

Quiz

Canada–U.S. Tariffs Quiz

🇨🇦🇺🇸 Canada–U.S. Tariffs Quiz

Multiple Choice

  1. What is a tariff?
    A) A limit on the number of goods allowed to enter a country
    B) A tax on imported goods
    C) A government subsidy for domestic producers
    D) A type of trade embargo

  2. Which major trade agreement between Canada, the U.S., and Mexico replaced NAFTA in 2020?
    A) TPP
    B) CETA
    C) USMCA (CUSMA in Canada)
    D) CPTPP

  3. In 2018, the U.S. imposed tariffs on Canadian steel and aluminum under which justification?
    A) Environmental protection
    B) National security (Section 232)
    C) Currency manipulation
    D) Anti-dumping

  4. Which Canadian industry has frequently been involved in long-standing tariff and trade disputes with the U.S.?
    A) Aerospace
    B) Softwood lumber
    C) Fisheries
    D) Telecommunications

  5. Under USMCA/CUSMA, tariffs on most goods traded between Canada and the U.S. are:
    A) Eliminated
    B) Cut by half
    C) Only charged during peak seasons
    D) Applied to agricultural goods only

True or False

  1. Tariffs are used by governments to protect domestic industries from foreign competition.

  2. Canada and the U.S. are each other’s largest trading partners.

  3. Retaliatory tariffs are tariffs imposed by one country in response to tariffs from another.

  4. All Canadian dairy products enter the U.S. tariff-free.

  5. Tariff disputes between Canada and the U.S. can be settled through panels under USMCA/CUSMA.

Short Answer

  1. Name one economic impact tariffs can have on consumers.

  2. What is one reason a country might impose tariffs on imports?

  3. Name a Canadian product besides lumber that has faced U.S. trade disputes.

  4. What does the term “trade war” generally refer to?

  5. How can tariffs affect prices for businesses that rely on imported materials?

Answer Key

Multiple Choice

  1. B — A tariff is a tax on imported goods.

  2. C — USMCA (called CUSMA in Canada) replaced NAFTA in 2020.

  3. B — The 2018 steel and aluminum tariffs were imposed under Section 232 national security grounds.

  4. B — The softwood lumber dispute is long-running and well-known.

  5. A — Under USMCA/CUSMA, most tariffs between Canada and the U.S. are eliminated.

True or False

  1. True — Tariffs are often used to protect domestic industries.

  2. True — They are each other’s largest trading partners.

  3. True — Retaliatory tariffs respond to another country’s tariffs.

  4. False — Canadian dairy is heavily protected, and many products face U.S. tariffs or quotas.

  5. True — USMCA/CUSMA includes mechanisms for dispute resolution panels.

Short Answer (Sample acceptable responses)

  1. Higher prices for imported goods or goods made with imported materials.

  2. Protect domestic industries, reduce reliance on foreign supply, respond to unfair trade practices, or raise government revenue.

  3. Examples: Dairy, beef, aluminum, steel, aerospace (e.g., Bombardier disputes).

  4. A back-and-forth escalation of tariffs or trade barriers between countries.

  5. Tariffs increase input costs, which can raise production costs and final prices.