Trump's Trade War with Canada: A Nation Caught in the Crossfire
Canada and the United States are embroiled in a trade dispute that has left many surprised, given Canada's open economy and strong trade ties to its northern neighbor. According to figures from the World Bank, Canada's trade is equal to 64% of its economic output, compared to just 25% for America.
Despite this, US President Donald Trump has accused Canada of being a predator that has 'ripped off' the United States for 50 years and is strangling its industries. The president has imposed tariffs on $20 billion worth of Canadian products and threatened to pull out of the US-Mexico-Canada Agreement (USMCA) signed in 2018.
The US trade deficit with Canada stands at $27.3 billion, but this can be attributed to one industry: oil. Canada exports over $85 billion worth of crude oil to the United States each year, making it a vital component of the US economy.
Experts are urging caution and predict that the two countries need each other economically, with 70% of Canadian exports going to the US. With time still available before tariffs take effect on September 29, there is an opportunity for both sides to come to an agreement.