How Canada could hit back to hurt the US economy - and Trump
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 economyโฆ
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.
Polls suggest a majority of Canadians would be unhappy if his government went in the other direction and made significant concessions to the US. That sentiment is shared by Ontario Premier Doug Ford, one of Trump's most vocal critics north of the border, who responded to the tariff threats by telling the US president to "kiss my ass".
Canada's Finance Department said additional measures to protect workers and businesses would be announced on Tuesday.
Here are some areas where Canada can apply economic pressure.
Carney noted on Saturday that Canada supplies the vast majority of US natural gas and electricity imports and about 60% of crude oil imports.
"I don't think they want us to stop sending any of that energy," he said.
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