President Trump's aggressive trade tactics, particularly the potential imposition of 25% tariffs on Canadian goods, pose a significant threat to Canada's economy. This could lead to recession given that a substantial portion of Canada's exports depend on the United States. While Canada, a nation aligned with American values and interests, has legitimate concerns, Trump's actions are likened to bullying, causing unnecessary fear and anxiety. The situation underscores the tension in US-Canada relations, highlighting the disparity in handling allies versus adversaries in trade negotiations.
Canada's sin is to be party to a free-trade agreement - the USCMA - that it negotiated in good faith with the same US president now browbeating it.
It's important to realize the magnitude of the threat Trump is making. About three-quarters of Canadian exports go to the United States, accounting for 20% of Canadian GDP.
Defenders of Trump's approach to trade tend to cite China as an example of how pure free-trade theory doesn't work in the real world - China is an authoritarian society.
The madman theory has much to recommend it in dealing with Hamas or the Houthis, but not when handling relations with Ottawa.
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