US-Canada Trade War Escalates as Trump Imposes Tariffs
Canada is an unlikely target for a US trade war, given that it's one of America's biggest export markets.
The North American trade pact negotiated by President Donald Trump means most American products enter Canada duty-free.
However, Trump has been critical of Canada, claiming it's 'ripping us off' and strangle its industries. He's imposed 50% tariffs on $20 billion worth of Canadian products and is threatening to cut off Canadian companies from US government contracts.
Canada's trade is equal to 64% of its economic output, while the US economy relies heavily on imports of crude oil from Alberta's oil sands deposits.
Despite tensions, experts say there's still time for a deal and that both countries need each other economically. Canadian Prime Minister Mark Carney remains open to an agreement: 'Canada is always ready to strike a fair deal.'