Trump's Trade War Targets Canada: A Nation Built on International Commerce
Canada and the United States are in the midst of a trade war, with President Donald Trump accusing his northern neighbor of being a predator that has been cheating the US for decades.
The US runs a significant trade deficit with Canada, but this can be largely attributed to one industry: oil. In 2025, Canada exported over $85 billion worth of crude oil to the United States, which is used by refineries in the Midwest due to its unique properties.
Despite this reliance on Canadian oil, Trump has imposed tariffs on $20 billion worth of Canadian products and has threatened to ban some Canadian imports outright. Ottawa has retaliated with its own tariffs, leading to a deteriorating relationship between the two nations.
The USMCA trade agreement negotiated by Trump in his first term is at risk of being jeopardized if the standoff continues, as it has created a thriving automotive industry that straddles the US, Canada, and Mexico.