How Canada could hit back to hurt the US economy - and Trump
What leverage does Canada, which sells about 70% of its goods to the US, actually have in this spiraling trade dispute?
Canada, which trades approximately 70% of its goods with the United States, possesses significant leverage in the escalating trade dispute. Prime Minister Mark Carney can utilize strategic retaliatory duties on key sectors such as steel, dairy, appliances, agricultural equipment, electronics, pulp and paper. Prime Minister Carney's government is contemplating a 25% surcharge on electricity exports to the US, which could impact 1.5 million homes and businesses in Michigan, Minnesota, and New York.
Canada is also a major provider of natural gas, electricity, and crude oil, with about 60% of crude oil imports originating from the US. Moreover, Canada is a top supplier of critical minerals like potash, lithium, nickel, and graphite, with the US being Canada's primary destination for mineral exports. Ontario Premier Doug Ford has expressed a willingness to consider an energy surcharge on electricity exports to the US, warning that the US "won't get a grain of sand out of Ontario."
Canada's refusal to engage in trade talks and the imposition of an alcohol boycott on US alcohol products has caused significant economic harm to the US, with wine exports to Canada dropping by 78% year-over-year. The US midterm elections are approaching, and the economy is a critical issue for voters, with two crucial Senate races in Michigan and Maine, both bordering Canada and heavily reliant on US exports.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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