There is no doubt that the Canada-US relationship is the most unique in the world. These two countries, one more powerful than the other, represent interdependence and cooperation with each other for the world. However, in recent years, this relationship has broken down since United States governments began increasing tariffs on products exported from Canada. The trade conflict between these two countries is becoming contentious and these issues are having a significant impact on Canada's lumber and motorcycle industries. This report will analyze the impact of high customs duties on the product in Canada in general and on the wood and motorcycle industries in particular. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay For the imported product as a whole, according to Coyne (2018), instead of using the tit-for-tat method to combat Americans, the Government of Canada plans to reduce taxes on the same products from other countries so that they can sell in Canada and export their products to other countries except the United States. The method would have a positive influence on the economy of Canada since there will be a wide range of products with a variety of prices for the customer to choose from. Therefore, they could purchase items that match their income and interests. According to the Daily (2018), imports and exports of products from other countries to Canada increased by $18.5 million and $12.5 million in May. On the other hand, if Canada kept the tax the same, it would lead to an increase in the price of ingredients, raw materials and supplier facilities. As a result, the price of products would increase and if citizens' salaries did not increase, this could lead to inflation. According to the Quotidien (2018), comparing the average exchange rate over just one month, from April to May, the Canadian dollar lost 0.8 cents against the US dollar. For the automotive industry, in 2016, “$63 billion of products exported by Canada were from the automotive industry and 96% of this amount came from the United States.” However, with the recent situation, the increase in tariffs on steel and aluminum, this would have a significant impact on this manufacturing. According to Le Quotidien (2018), “sales in the transportation equipment industry fell 1.9% to $10.6 billion, after a 2.4% decline in April.” The main reason is that sales of motor vehicles and vehicle parts decreased by 6.6% and 3.7% in May. For cities in Canada where automobiles are the main industry, this problem could easily turn these places into “ghost towns” as vehicle-related activities are slowed or even closed. In addition, people who earn their living depend on this business and fear finding themselves unemployed sooner or later. According to Layaga, the automotive sector in Canada is not only the main exporter but also the one that provides direct and indirect employment to approximately 500,000 Canadians. It will be difficult for them to look for alternative employment given their skills and the salary they receive may not be as high as the current one..