How Canada could hit back to hurt the US economy - and Trump
Canada is considering strategic economic countermeasures, including potential energy surcharges, in response to threatened US tariffs. Officials are weighing the impact of these trade disputes on the integrated North American economy.
Why it matters
The potential for a trade war between the US and Canada could significantly disrupt energy markets and cross-border manufacturing supply chains.
Figure caption, 'Trump underestimates us': Doug Ford takes aim at US over tariffs
What leverage does Canada, which sells about 70% of its goods to the US, actually have in this spiralling trade dispute with its southern neighbour, who also happens to be the world's largest economy?
Canada is the top customer for 26 US states, including Maine, Michigan, and Wisconsin. And it is in the top three for 45 of the 50 American states, suggesting Prime Minister Mark Carney has room to manoeuvre in a trade fight.
For now, Carney's planned Canadian retaliatory duties are strategic "dollar-for-dollar" countermeasures focused on steel, dairy, appliances, agricultural equipment, electronics, pulp and paper - though the list is still being finalised.
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