Carney's Trade War Leverage Fades with Rising Job Losses

Canadian Prime Minister Mark Carney has the support of most Canadians for his decision to break off trade talks with the US, but this backing may not last long as the consequences of the trade war start to sink in.

The country's economy is heavily dependent on exports to the US, which accounts for about 70% of its exports. Carney's government announced dollar-for-dollar counter-tariffs on $25 billion worth of US goods and a C$7.5 billion package of economic support measures.

Experts warn that if this escalating trade war shows up in palpable increases in unemployment, factory shutdowns, and declining income, Canada's leverage will diminish. Julian Karaguesian, a former adviser at Canada's Finance Ministry, said Canada 'cannot win an economic war of attrition with the US.'