Using the article from the New York Times titled “As U.S. T…
Using the article from the New York Times titled “As U.S. Tariffs Become Reality, Canadians Prepare for Economic Pain” citation: Austen, I., & Isai, V. (2025). As U.S. Tariffs Become Reality, Canadians Prepare for Economic Pain. New York Times Company. https://ezproxy.bellevuecollege.edu/login?url=https://www.proquest.com/newspapers/as-u-s-tariffs-become-reality-canadians-prepare/docview/3174197475/se-2?accountid=35840 (The article is copied below for your reference and convenience). write an essay between 450 and 600 words. Your essay should include at least three different well-explained macroeconomic concepts* and address the following question: Canada is currently facing economic anxiety and is challenged with it export-dependent economy likely to head into a recession as a result of the Trump administration’s tariffs. Examine how current U.S. policy is affecting the Canadian economy and what policy options Canada’s government and/or central bank has to respond to this external shock. In your essay, you will want to consider: a) Canada’s economic relationship with the United States b) Macroeconomic concepts to show the inter-relationship between trade, output, growth, exchange rates, inflation and unemployment c) How Canada can use economic policies to ensure that they are able to move towards their goals of employment, price stability and economic growth. Suggested terminology includes GDP (along with its components), unemployment, output gap, consumption, savings taxes, budget position, monetary policy, fiscal policy, trade and currency changes as well as the algebraic relationship between the components of AD. Your final exam essay is an opportunity to showcase what you have learned in economic concepts, reasoning and models over the course of the quarter. Here are some tips: Draft an outline ( not to submit) so your paper flows with a clear purpose followed by support from the article and economic analysis. Remember that it is better to be logical and clear than trying to address more than one event at a time. I am looking for students to show their understanding of economic concepts coupled with the ability to explain events using microeconomic models along with other key economic decision making tools. Support your analysis with information in the article along with your textbook. Please use bold font when using an economic term or concept. DO: ANSWER the prompts using at least three (3) fully formed economic concepts from your textbook to explain your understanding of the events that have occurred (as described in the article). You can do this by: Using graphical models to reinforce your analysis. Defining the concept(s) in your own words and describe how the concept(s) plays out in the problem/issue. Explaining clearly the relationship between cause and effect Title your essay: A good title gives the reader an idea of what to expect when reading. Refer to the article(s) by including (Toronto Star or TS) after your reference. Make strategic choices of words, tone, and style appropriate for academic writing. DON’T DO: Do not summarize the article. Do not make claims that aren’t supported. Do not use economic terms that you are not defining. Do not use jargon or include references outside your class materials/textbook or the article given. Excerpt from the article follows: _______________________________________________________________________________________________________________ “WINDSOR, Ontario — The trucks that carry about $300 million worth of auto parts each day over the bridge from Windsor, Ontario, to Detroit are still rolling as usual. But in the aftermath of President Donald Trump’s decision to impose 25% tariffs on most categories of Canadian exports, the mood in Windsor, like all of Canada, was transformed. Trump’s move has ignited a sense of economic anxiety and anger among Canadians about how they are being treated by their neighbor, ally and best customer. Most are still puzzling over Trump’s motivations and objectives for the tariffs, as well as his comments about annexing Canada as the 51st state. And as they turned their attention to getting the potentially crippling tariffs, and a 10% levy on Canadian oil and gas and some minerals, lifted, politicians, business people and ordinary Canadians say that the relationship between the two countries will never return to what it once was. Flavio Volpe, the head of a Canadian auto-parts maker trade group, said his members could start shutting down factories in days, and that he feels betrayed by the United States. “We’ve built two societies on the same values,” said Volpe, who is also a member of Prime Minister Justin Trudeau’s Council on Canada-U.S. Relations. “The man in the White House did a U-turn and drove right over us.” Trudeau and anxious business leaders throughout Canada said their country’s focus must be on ending the tariffs as quickly as possible. Most forecasts project that Canada’s export-dependent economy will be sent into a recession, although they differ on its timing and initial severity. “We have a limited experience for this magnitude of a trade shock,” the Royal Bank of Canada, the country’s largest financial institution, said this week. Some Canadians reached back for comparison to the Smoot-Hawley tariffs of 1930, which raised the average U.S. import duty to a staggering 59.1%. Many economists believe that they worsened the Great Depression, but the two countries’ economies were far less integrated at that time. Aside from oil and gas, Canada’s largest export sector is the auto industry. On Tuesday, Trump suggested that the only way out of tariffs for the sector is to move all of its production to the United States. Aside from abandoning a skilled workforce, that would require billions of dollars in new investments. Historically, automotive trade has been largely balanced between the United States and Canada. Parts often swirl around between Canada, the United States and Mexico, sometimes crossing borders repeatedly before winding up in vehicles in a dealer’s showroom. Volpe said that, aside from the tariffs, trade remained unchanged Tuesday, an assessment backed up by the usual migration of trucks to the Ambassador Bridge. The 25% tariffs are being paid by the importers, either other parts makers or automakers.”* *note this is not the complete article but enough to give you context for writing your essay