Canada bets on defiance as Trump’s tariff threats loom over trade

Trump’s tariff threats escalate a high-stakes Canada–US trade war, pitting Canada’s leverage against the much larger US economy. Canada faces structural downsides (the US buys about 70% of its exports and the US is roughly 13 times bigger), but Prime Minister Carney has bolstered domestic support by resisting US demands and signaling Canada could win, potentially setting a template for countering Trump policies. Talks could resume if Washington tones down its stance, with a looming 50% tariff on autos threatening North American supply chains. The piece notes US vulnerabilities (oil, potash) and Canada’s momentums (growth ahead of the US), while cautioning that the outcome remains uncertain as both sides navigate a deeply integrated relationship.