Trump Targets Canada in Escalating Trade War Amid Ongoing Negotiations
Canada's economy is built around international commerce, but it has found itself in the crosshairs of a U.S. trade war.
The country purchases more from the United States than any other nation on earth, with American farmers relying heavily on Canada as an export market.
Despite this, U.S. President Donald Trump sees Canada as a predator that has cheated the U.S. for 50 years and strangled its industries.
Trump's latest move involves slapping 50% tariffs on $20 billion worth of Canadian products in protest of what he claims is discrimination against U.S. auto, dairy, and alcoholic beverage exports.
Canada has retaliated with its own set of tariffs, but the U.S. trade deficit with Canada is largely driven by the country's need for Alberta's oil, which sells at a discount to benchmark U.S. crude oil.
The two countries have been negotiating a new trade deal, but talks collapsed in August and Trump has since made personal attacks on Canadian leaders.