Understanding Tariffs and the Possible Ramifications of a Trade War

Part One: Discussion

  • Arrange the class into a circle of chairs so that you are all facing each other.
  • After watching the five-part Nature Labs lesson story ‘Tariffs: Canada, we have a problem. and reflecting on what you watched, discuss as a class what a tariff is and how it impacts our world.
  • Your teacher will stay out of the conversation; they are just there to observe. Do not direct any questions to them.
  • It’s not necessary to raise your hand during the discussion, just have a conversation with your peers. Let it flow naturally.
  • When someone asks a question, or provides an observation, build your discussion around that comment first before starting a new idea.
  • At the end of the conversation, summarize what you discussed.
  • Make sure everyone has an opportunity to speak.

Strategies for Classroom Discussion

Questions to get you started:

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

  1. Can you think of any products that are or will be more expensive because of tariffs? How does/might this impact your buying choices?
  2. How do tariffs influence international relationships between countries? Can they lead to trade wars? Have they ever led to actual wars?
  3. 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

  1. Do you think tariffs are fair? Why or why not?
  2. 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?
  3. 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

  1. 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?
  2. 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?
  3. 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

  1. 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?
  2. How could or should global trade agreements (like USMCA) impact tariff policies? Is there value in current or future international agreements?
  3. 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?

Part Two – Activity: Tariff Simulation

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?

6. Real-World Application

  • 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.

7. Debate: Is Tariff Retaliation Good or Bad?

  • 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.

Answer the following individually, in written form: What is the biggest threat of a trade war with the United States? Explain your position.


Part Three – How does this relate to your class?

*Select your course and choose ONE option*

Social Studies

Science

English

Careers

Visual Storytelling


Explore more of this topic through Nature Labs


*Teacher Resource for this lesson*

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