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What a trade war is, how it works, and why it will impact Canada

WATCH: As global trade tensions continue to rise, we delve into what a trade was is, what it takes win one and how it will impact you. – Jul 21, 2018

U.S. President Donald Trump has slapped tariffs on billions of dollars’ worth of goods from Canada, the European Union, Mexico and China.

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And as countries strike back, tit-for-tat, economic and diplomatic tensions continue to escalate across the globe.

READ MORE: U.S. fires back at Canada’s retaliatory tariffs with WTO challenge

Prime Minister Justin Trudeau even referred to the tariffs as “insulting” during an interview last month, highlighting the growing acrimony between two nations once considered bedrock allies.

In the wake of tariffs imposed on steel and aluminum, and retaliatory levies by the Canadian government on certain U.S. products, some consumers are considering boycotting U.S. made products and focus their spending within Canada, to show solidarity.

WATCH: IMF warns G20 leaders that tariffs will harm global economy

So what is a trade war? Has protectionism and imposing tariffs ever worked to boost domestic jobs?

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READ MORE: Canadians still flocking to the U.S. in spite of trade war

In the video, we take an important history lesson from 1980s classic Ferris Bueller’s Day Off, in which Ben Stein explains the impact of the infamous Smoot-Hawley Tariff Act. Anyone? Anyone?

READ MORE: These animated maps show Canada has so much more to lose in a trade war than the U.S.

The video also explores who the biggest victims of a trade war are, including consumers and ketchup-lovers alike, as well as what it takes to win a trade war.

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