US Trade War with Canada Set to Backfire Amid Crude Oil Dependence

Canadian Prime Minister Mark Carney revealed that the US made last-minute demands in trade talks that would have restricted Canada's sovereignty.

The US government demanded control over Canada's trade deals, critical minerals, and French language policies, which Carney called 'unacceptable'.

Canada has leverage in this trade war due to its crucial exports of crude oil, natural gas, and electricity to the US. In 2023, 60% of US crude imports came from Canada, making it a significant vulnerability for the US economy.

Carney stated that 'Canada fuels American growth' and 'I don't think they want us to stop sending [oil]'. The Canadian government has vowed to match US tariffs dollar for dollar in response to the trade war, which will likely hurt both countries' economies.