Canada has come hot out of the gate, retaliating to tariffs imposed by Donald Trump. Canada has begun attempting to use economic leverage to damage America as much as possible; Trump however is not seeking damage to Canada. He is seeking simple demands from Canada - instead he’s looking to bring American manufacturing back home and to get Canada to better control its border with America to prevent illegal immigration and drug smuggling.
Trudeau seems to think he can economically out drink Donald Trump. There’s just one problem: trade with Canada is tied to less than 3% of America’s total GDP. Conversely, 43% of Canada’s GDP is tied to trade with America.
The U.S. has more money, (Canada’s annual GDP is $2.1 trillion while America’s is $26.9 trillion.) more leverage, and more people to withstand what ever storm (or light drizzle) Trudeau has for it. The Canadian Dollar has plummeted as a result of the face off.
When the United States receives concessions from Canada, Donald Trump is very likely to draw down at least some of its tariffs on Canada. Mexico is in a similar boat, with a relatively small percentage of the U.S. economy relying on it, with a major portion of the Mexican economy relying on America.
