In this episode of The Professor Is In, Justin Wolfers digs into the latest tariffs on Canada, answering subscriber questions and responding to comments from his earlier Diving In He addresses the suspicious timing of these new tariffs, break down the confusing dairy tariff-rate quota, and argues that total US-Canada dairy trade — about a billion dollars against hundreds of billions in overall trade — isn't worth blowing up either economy over.

On whether Canada should retaliate, Justin borrows Joan Robinson's "rocks in the harbour" metaphor: most of a tariff's cost lands on the country imposing it, so matching Trump would mostly hurt Canadians.

Finally, Justin discusses the biggest issue: trust. Once a president tears up a deal he signed, the value of his next signature is zero — and that discourages the deep, long-run cross-border investment that has defined North American trade over the past several decades.

Canadian Tariffs Diving In: https://omny.fm/shows/platypus-economics/the-biggest-economic-story-nobodys-talking-about-diving-in

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