What actually happens to normal people if America stops buying Canadian products? Do the former exports just get sold to Canadians at a lower price, or is that retarded, and if it is retarded why is it retarded?
Initially, the prices will go up for leaves and 'muricans.
The products will go through a round of shrinkflation if applicable to try to match the previous target price.
Over time, if there is a better local competition, the product will lower its revenue enough to not make sense to be exported to that locale, and end up being pulled from shelves.
The company now has three options: lower production significantly to match the remaining markets, enter a new, similarly sized market, or lower the profit margins significantly (which no investors would like).
So, at best, the leaves would have the same product at a similar price, or the product goes extinct.
Modern supply chains are
not built with downsizing in mind.
If tariffs encourage American production because importing becomes too expensive, will tariffs also encourage house-building and lower prices on formerly exported products in Canada because of an increase in supply of formerly exported materials, and corresponding decrease in price?
It's unlikely and possible, the biggest challenge is going to be raw material cost.
America is in a pretty unique position only matched by a few other countries (such as China and some African shitholes) where you can find almost all raw materials you need on it's soil, so an initial economic downturn can end up (a few years down the line) being a massive boon for the economy.
Other countries don't have that advantage, especially leaves, but challenging times call for economic alliances, this may push Canada to join something like BRICS or the EEA if they're too starved for raw materials. It will still come at a cost increase.
