There is no doubt that the relationship between Canada and the United States is the most unique in the world. These two countries, one more powerful than the other, represent for the world the interdependence and cooperation between them. However, in recent years, this relationship has broken down as US governments began increasing tariff taxes on products exported from Canada. The trade conflict between these two countries becomes contentious and these issues have a significant impact on Canada's lumber and motorcycle industries. This report will analyze the impact of high tariffs on product in Canada in general and on the lumber and motorcycle industries in particular. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay For the imported product as a whole, according to Coyne (2018), instead of using the “eye for an eye” method to counter the American, the Canadian government plans to reduce taxes on the same products from other nations in so that they can sell within Canada and export their products to other countries except the United States. The method would have a positive influence on Canada's economy as there will be a wide range of products with a variety of prices for customers to choose from. Therefore, they could purchase items that fit their income and interests. According to the Daily (2018), products from other nations imported and exported to Canada increased by $18.5 million and $12.5 million in May. On the other hand, if Canada kept the same taxes, it would lead to higher prices for ingredients, raw materials and facility suppliers. As a result, the price of the product would increase, and if the salary of citizens did not increase, this could lead to inflation. According to the Daily (2018), comparing the average exchange rate in a single month, from April to May, the Canadian dollar lost 0.8 cents against the US dollar. For the motorcycle industries, in 2016, “$63 billion of products exported from Canada were from the automotive industry and 96% of this came from the United States.” However, given the recent situation, increasing tariffs on steel and aluminum would have a significant impact on this manufacturing sector. According to The Daily (2018), “Sales in the transportation equipment sector fell 1.9% to $10.6 billion, following a 2.4% decline in April.” The main reason is that in May, sales of motor vehicles and their components fell by 6.6% and 3.7%, respectively. For cities in Canada where autos are the primary industry, this problem could easily turn those places into a “ghost town” as vehicle-related businesses are slowed or even closed. Furthermore, people who rely on this company for a living fear that sooner or later they will become unemployed. According to Layaga, Canada's automotive sector is not only the largest exporter, but also the one that provides direct and indirect jobs to approximately 500,000 Canadians. It will be difficult for them to look for alternative work with their skills and the salary they receive may not be as high as the current one.