Canada Weighs Retaliatory Measures in Trade War with US

Canada has been seeking ways to counter the US's escalating trade war, but economists warn that taking retaliatory measures may come at a significant cost.

A recent survey found that Canadian commodities accounted for 63% of oil imported into the US in 2025, followed by 81.3% of electricity imports and almost 100% of natural gas imports.

Don Drummond, former chief economist for TD Bank, suggests using non-tariff measures such as export taxes or quotas on energy exports, which could harm both countries' economies.

Trevor Tombe from the University of Calgary's School of Public Policy cautions that Canada's economy would suffer more from retaliatory actions than the US, and that it may not even change the US administration's behavior.