This is a topic that's been dug into a lot on this thread already, but the TL;DR version.
Some tariffs have always been in place between nations. Generally they're very targeted and very carefully managed to support key local industries that have strategic importance, but where the nation in question isn't realistically going to be competitive on the world stage without them. Generally because local labor or input costs are too high. US steel, or soy beans for example.
These are intended to maintain a minimum level of domestic production because... if you need to get in a war, it's helpful to be able to make your food and your war material domestically so you're not at the mercy of other nations.
Canada specifically had some, but then... so did the US, and they were at historically low levels under NAFTA. There were also 'maximum quotas' established for some 'sensitive' (usually agricultural) goods, which incurred very high tariffs on any exports above that limit. Wood or cheese as examples. This is the very high tariff percentages that you saw bandied around on right leaning sources when Trump was originally implementing this mess. They did exist, but generally the quotas just applied a maximum level of exports as it wasn't worth paying the elevated rates over quota.
Also worth noting that the US actively subsidizes these same industries (e.g Dairy farmers) domestically for the reasons of strategic importance detailed above. Subsequently, Canada applied the quotas to ensure that they too could have strategic industries domestically and those companies wouldn't be out competed by US taxpayer subsidized competitors.
A resource on that topic can be found here:
https://www.commenda.io/blog/canadian-tariffs-on-us-goods-before-trump
You are correct, 'fair trade' and a 'free market' model does generally support no tariffs. Tariffs are just yet another tax adding friction to the wheels of commerce and making the nation setting them generally less competitive on the world stage after all. But then Trump doesn't care about either of those things.
I should clarify on this topic: If tariffs are applied to Canada by the US, Canada doesn't pay them. The US importing company pays them when the goods cross the border. Which pushes up input costs for the US company, or gets passed to the US consumer... which is inflationary.
References:
https://www.kielinstitut.de/publica...icans-pay-almost-entirely-for-trumps-tariffs/
President Trump routinely claims that foreigners pay his tariffs, which is false—U.S. importers pay them. Over time, however, foreign exporters can be expected to bear a small but rising burden of the tariffs through price cuts, while most of the cost will be borne by U.S. consumers in the form...
www.cfr.org
Anyway, Trump, has instead decided that the ONLY reason that any trade deficit with any nation could possibly exist is because the US is threatened by 'unfair trade practices'. This is evidently wrong, but it plays well with the base so long as they don't think too hard on the topic...
The actual reason why the US runs a trade deficit? US consumers are rich compared to most of the world, and they like to buy things. They like to buy em cheap, and all else being equal aren't willing to pay American salaries for the manufacture of their goods. We're victims of our own success there, we like high wages and we like cheap consumer goods. So... a trade deficit.
As a response to this, Trump has tried (and subsequently failed) to apply massive tariffs to goods from pretty much every nation on the planet in a (claimed) attempt to boost US based manufacturing job numbers and 'revitalize the middle class'. For context, the numbers on his liberation board he posted up weren't tariff rates for the nations in question. They were US trade deficits as a percentage of total trade (i.e % more stuff imported, than exported). Trump decided that it was smart to place tariffs at those levels... because again, its a good story to tell the base who won't look deeply into the topic.
Anyway, this has been ineffective:
https://fred.stlouisfed.org/series/MANEMP
Since then, tariffs seem to mostly have been used as a 'negotiating tool' to try and gain favorable terms for the US. This has also failed in my opinion, in no small part because it makes the business environment in the US unbelievably complicated when the rules of engagement change daily. Something which has hurt investment, productivity, and the cost of goods for anything made in the US that
is subsequently exported. But that's a much more complex issue, so you can draw your own conclusions.
Wall Street's benchmark S&P 500 sees third year of double-digit gains, while non-US stocks register best run since 2009.
www.aljazeera.com
View attachment 746091
Honestly, even if there
was some kind of coherent strategy there originally, the sheer incompetence exhibited in implementation makes the whole thing an embarrassing and damaging mess for the US. Which, honestly? Classic Trump.