How Canada could hit back to hurt the US economy – and Trump
Canada is the top customer for 26 US states, including Maine, Michigan, and Wisconsin. And it is in the top three for 45 of the 50 American states, suggesting Prime Minister Mark Carney has room to manoeuvre in a trade fight.
Canada possesses significant leverage in its ongoing trade dispute with the United States, despite the country's heavy reliance on US trade. Prime Minister Mark Carney has proposed strategic "dollar-for-dollar" countermeasures against US goods such as steel, dairy, appliances, agricultural equipment, electronics, pulp and paper.
Ontario Premier Doug Ford, a vocal critic of the US, has even suggested a potential 25% surcharge on electricity exports, which would disproportionately impact US states like Michigan, Minnesota, and New York. Canada's energy and critical mineral exports, including natural gas, electricity, crude oil, potash, lithium, nickel and graphite, provide ample opportunities to inflict economic pain on the US.
With the upcoming US midterm elections and the Republican party's vulnerable position, Canada's tough stance is expected to resonate with voters and further strain American sentiment toward the trade dispute.
Written by urgent.news from Capital Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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