Canada's Trade War Gamble: A Losing Proposition

A new trade war between Canada and the US is escalating as Canada's retaliatory tariffs take effect tomorrow. But, according to Sean Speer, this open-ended conflict will ultimately harm Canada more than the US.

The American economy dwarfs Canada's, with a value of $30 trillion USD compared to Canada's $27.6 billion CAD in counter-tariffs, or approximately $20 billion USD. The affected trade amounts to roughly six-hundredths of 1 percent of American GDP.

Canada's exposure is concentrated, with the US purchasing 71.7% of our merchandise exports in 2025. Access to the American market is fundamental to Canadian investment, production, and employment.