How Canada could hit back to hurt the US economy - and Trump
Canada is evaluating potential economic countermeasures against the United States in response to an ongoing trade dispute. Options include targeted tariffs on goods and a possible energy surcharge on electricity exports to the U.S.
Why it matters
The potential for a trade war between the U.S. and Canada could have significant impacts on North American energy markets and manufacturing supply chains.
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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