How Canada could hit back to hurt the US economy - and Trump
BBC News reports on potential Canadian retaliatory measures against the US and its President, Donald Trump, in their ongoing trade dispute.
Leverage Points for Canada:
- Energy and Critical Minerals: Canada is a major supplier of natural gas, electricity, and crude oil to the US. Prime Minister Mark Carney has hinted at using this leverage, though specific measures are not yet included in the countermeasures. Ontario Premier Doug Ford has openly discussed an "energy surcharge" option. Additionally, Canada holds significant reserves of critical minerals like lithium, nickel, and graphite, another area where it can apply pressure.
- Agricultural and Industrial Goods: The planned Canadian retaliatory duties target steel, dairy, appliances, agricultural equipment, electronics, pulp, and paper. These strategic "dollar-for-dollar" countermeasures are currently being finalized.
- Purchasing Power: Even before the recent trade tensions, Canada's decision to ban US alcohol from liquor stores caused economic pain in specific American states. This demonstrates Canada's ability to cause economic harm to the US on a smaller scale.
'Trump underestimates us': Doug Ford takes aim at US over tariffs
Canada's Finance Department has promised further measures to protect workers and businesses, with more details to be announced on Tuesday. Polls suggest Canadians largely oppose making significant concessions to the US, reflecting the sentiment of Premier Ford, a vocal critic of Trump.