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Trump's Trade War with Canada Risks Economic Backlash

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US President Donald Trump has started a trade war with Canada, which could harm the US economy and lead to job losses in the auto industry.

The Wall Street Journal described Trump's first round of tariffs against Canada as 'the dumbest trade war in history', and warned that it got even dumber when the administration escalated with new tariffs.

Canadian Prime Minister Mark Carney, however, refused to back down, saying 'we were not prepared to compromise our sovereignty'.

US Ambassador David Cohen warned that Canada is a crucial trading partner for the US, and that eliminating Canadian aluminum imports would be particularly damaging. He noted that 63% of American crude oil imports come from Canada, and that many US refineries are designed to handle Canadian heavy crude.

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