Canada Caught in US Trade War Crossfire
Canada's economy is often seen as one of the most open in the world, but it does have some protected industries. The country imposes tariffs of over 200% on most dairy products once a quota has been exceeded.
The United States has complained for decades about Canadian softwood lumber producers receiving unfair subsidies. However, Canada disputes these allegations.
President Trump has expressed frustration with the trade deficit between the two countries, which stood at $27.3 billion last year. He has threatened to pull out of the US-Mexico-Canada Agreement and impose further tariffs on Canadian products.
Despite the tensions, both sides seem open to negotiating a new agreement. Canadian Prime Minister Mark Carney stated that Canada is 'always ready to strike a fair deal.'