Activity: Understanding Tariffs and the Possible Ramifications of a Trade War (Teacher Resource)

Grade Level: 9-12
Subject: Social Studies, Economics, Civics, Business Studies, Careers, English, Science, Art/Visual Storytelling
Duration: 60 minutes

• Complete activity after watching the five-part Nature Labs lesson story: Tariffs: Canada, we have a problem.

Lesson Objectives

By the end of this lesson, students will be able to:

1. Define tariffs and explain their purpose.
2. Understand how tariffs impact consumers, businesses, and governments.
3. Analyze real-world examples of tariffs, trade wars, and their socio-economic impacts.
4. Debate the pros and cons of tariffs in a global economy.
5. Debate how Canada should respond to tariffs and sovereignty threats in a complex, changing world.

Key Terms

• Tariff
• Retaliatory Tariff
• Trade War
• National Unity
• Sovereignty
• Import & Export
• Supply & Demand
• Free Trade vs. Protectionism
• NAFTA
• USMCA
• GDP

Structure

1. Introduction (10 minutes)

Discussion:

Facilitate a student-led discussion about what a tariff is. Sample prompts:

General Understanding of Tariffs

1. What are some reasons why governments impose tariffs?
2. How do tariffs affect the prices of goods for consumers?
3. In what ways might tariffs help domestic businesses? In what ways might they hurt them?

Real-World Impact of Tariffs

4. Can you think of any products that are or will be more expensive because of tariffs? How does/might this impact your buying choices?
5. How do tariffs influence international relationships between countries? Can they lead to trade wars? Have they ever led to actual wars?
6. The United States and Canada are currently engaged in a trade war. What do you think are the consequences of these actions for consumers and businesses in both countries? How do you think a trade war will impact the relations between the nations?

Ethical & Political Considerations

7. Do you think tariffs are fair? Why or why not?
8. Should a government prioritize protecting local businesses over offering consumers lower prices through free trade? Should a government be worried about their impact on a neighbouring nation?
9. Do you think this trade war is a threat to Canadian sovereignty? Why or why not? How might a threat to Canadian sovereignty shape our politics and policy decisions?

Debate & Critical Thinking

10. Imagine you are the leader of a country. Would you implement tariffs on imported goods? What might be the impact of your decision, domestically and abroad?
11. If a country places tariffs on another country’s products, should that country retaliate? How should they retaliate? What might be the impact of retaliation, domestically and abroad?
12. How should we weigh other issues – such as biodiversity loss – against economic threats? Should one issue matter more in a time of crisis? Regardless of your answer, what are the possible ramifications of your position?

Personal Connection & Future Implications

13. If tariffs were placed on products you buy often (e.g., smartphones, clothing, or food), how would it impact your purchasing decisions? Could tariffs impact the career you plan on pursuing?
14. How could or should global trade agreements (like USMCA) impact tariff policies? Is there value in current or future international agreements?
15. How will a trade war impact national unity? Will it bring us together or pull us apart? And how will Canada’s positions on other pressing issues – social and environmental – be impacted by the trade war?

2. Activity: Tariff Simulation (20 minutes)

Objective: Help students understand the effects of tariffs on consumers, businesses, trade, and international relations.

Instructions:

1. Set Up a Small Market – Divide students into groups:
   • Importers (selling foreign goods)
   • Domestic Producers (selling locally made goods)
   • Consumers (students who “buy” products)
   • Government (sets tariffs)
2. Use Small Props as Goods – Distribute a small prop as “products.” (Check out your local dollar store!)
3. Round 1: Free Trade – Allow consumers to buy from either importers or domestic producers at equal prices.
4. Round 2: Introduce a Tariff – Increase the price of imported goods and observe how buying behavior and attitudes change.
5. Discussion:
   • Who benefited from the tariff?
   • Who was negatively impacted?
   • How does this relate to real-world trade?
   • How did the tariff impact relationships?

3. Real-World Application (15 minutes)

• Present the example of the Smoot-Hawley Tariff of 1930.
• Revisit the discussion prompts from the introduction. Discuss what impacts the 1930 tariff had on different countries, including the United States and Germany, in the near and long term.
• Ask students to research and share one example of a tariff dispute (excluding the most recent one) and its long-term impact on domestic and foreign economies, as well as international relations.

4. Debate: Is Tariff Retaliation Good or Bad? (10 minutes)

• Split the class into two teams: Pro-Retaliation vs. Anti-Retaliation.
• Have them use the knowledge gained in class to argue their case.
• Wrap up with a summary of key takeaways.

Assessment

• Ask students to write a short response to:
  • “What is the biggest threat of a trade war with the United States? Explain your position.”

Adaptations by Course

Social Studies

• Assign students different countries that represent unique trade interests and use class discussion or debate as a tool to share the complexities of international trade negotiations.
• Explore how tariffs and potential trade war responses are represented in the political discourse (e.g., political cartoons, social media, news).
• Assign students different political parties and have them research how ideology shapes the various positions being taken in the trade war, on both sides of the border.
• Assign students different roles (e.g., small business owner, factory worker, consumer, CEO, advocate, premier, prime minister) and hold a stakeholder meeting where each student presents their position on possible trade war responses. Hold a vote to determine the best path forward for Canada. As a class, consider what other classes in other regions might think. Would they reach the same conclusion? Why or why not? What changes to the class decision would be required to create a national consensus?
• Explore how tariffs and trade wars have influenced elections and voter opinions. How might this trade war impact Canadian politics? Discuss as a class.

Science

• Explore how tariffs on imported goods might impact biodiversity (eg. fruits, plants, exotic pets, etc.) in Canada.
• Analyze how trade wars might impact food chains and ecosystems (eg. soybeans, fish, beef, palm oil) globally.
• Explore how tariffs might impact careers in science, biology, and environmental research.
• Investigate how international trade agreements have impacted conservation efforts, and how the collapse of global free trade might impact the environment.
• Explore how free trade has, and trade wars might, impact food security, agriculture, and soil health.
• Investigate the potential environmental ramifications of Canada’s various retaliatory options in a trade war.

Careers

• Research and present how tariffs might impact different careers.
• Simulate international trade negotiations, advocating for different careers in the doing.
• Run a mock import/export business and analyze how tariffs will impact profits.
• Explore how tariffs influence job demand and career choices.

English

• Develop persuasive writing skills by arguing for or against a possible Canadian trade war response.
• Practice persuasive and formal writing skills by responding to a tariff-related issue in the news.
• Develop critical thinking and public speaking skills by debating the possible impacts of a trade war on Canada.
• Analyze news articles, opinion pieces, and political cartoons about the trade war.
• Use creative writing to explore the possible impacts of tariffs on individuals, communities, regions, or issues.
• Analyze how politicians use rhetoric to argue for or against specific positions on this issue.
• Use poetry to express the impact of tariffs on society, business, and individuals.

Visual Storytelling

• Create political cartoons that illustrate the impact of tariffs on consumers, national unity, and international relations.
• Design a propaganda-style poster that either argues for or against retaliatory tariffs.
• Trace a product’s journey and illustrate how tariffs might impact its price and availability.
• Create a collage that illustrates how tariffs impact different groups and issues (consumers, businesses, governments, biodiversity, etc.).
• Show how tariffs alter the cost of everyday items through creative price tags.

Explore more on this topic through Nature Labs