Tit-For-Tat

It turns out that tit-for-tat is a surprisingly effective strategy in some games; trade being one of them, especially among large industrialized countries. Already in 1956, Harry Johnson pointed out that trade wars a la Trump wont yield good outcomes (for consumers and national welfare), given that partner countries are likely to retaliate.

After recent attacks by the White House to upset Canadian trade relations, Canada is playing tit-for-tat-trade with the US. Let’s not forget where most US exports go:

source