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what if Canada were to apply a fairly low across-the-board import duty on all US goods and services
You are not understanding "Spankee non-thinking". He does NOT have a clue about trade, as documented by his tariff-irrationality. We have all seen it.
Take away the ability to impose tariffs and he is stuck like a bug pinned to a display.
As an example, say the price of an item from the mfr is $50. Add a 50% US tariff and the price (to a US importer) is $75 ($50 + $25 tariff = $75). $25 tariff paid to the US govt.
Now change it to a 50% export tariff. $50 price + $25 export tariff = cost to US importer is $75, with $25 to the Canadian govt. Spankee won't (can't) do anything because the price to the US importer is $75--so no US imports, and no tariffs will be collected. Spankee's rationale FOR a tariff "disappears" because Canada is NOT "taking advantage" of low prices (per "Spankee non-thinking").
Of course, Spankee will *immediately* try his own export tariffs on US exports. What happens? Why?
