Canada stands up to President Trump: trade conflict is approaching

Trade tensions between Canada and the United States are reaching a critical point. President Donald Trump threatens to impose extensive tariffs, while the Canadian government declares readiness for vigorous defense of its interests. This is one of the most serious trade conflicts in recent years, with the potential to impact millions of people on both sides of the border.

Canada, as the third-largest trading partner of the U.S., exported goods worth over $320 billion last year. Yet, the United States recorded a trade deficit of $55 billion with this country. These figures demonstrate how closely intertwined the two economies are and how urgent it is to find solutions without escalating the conflict.

Canada’s Strategy: No Restrictions in Response

The Canadian government has decided to respond decisively to Trump’s threats. The Prime Minister and his team are already preparing a retaliatory plan that would affect nearly all categories of American products imported into Canada. From household appliances to bourbon to ships—nothing would be safe from Canadian tariffs.

Historical precedents show that Canada is unwilling to back down. In 2018, during Trump’s first term, the country quickly responded to American steel and aluminum tariffs with its own retaliatory tariffs. This time, it will confront the president with greater resolve and better-prepared plans.

The Foreign Minister emphasizes that Canada, as an exporter of goods, serves approximately 35 U.S. states. Any disruption in the flow of goods across the border would mean job losses and higher prices for American consumers. This warning is directly aimed at Trump’s voter base—the working class, which would be the first to feel the impact of increased prices and unemployment.

Energy: Canada’s Decisive Card

When it comes to real influence, Canada has a powerful weapon—energy resources. More than half of U.S. crude oil imports come from Canada, primarily from Alberta province. Electricity from Canadian power plants supplies cross-border U.S. states that are entirely dependent on this energy.

The Foreign Minister described this as a strategic option: “Everything is on the table, including energy exports.” This statement signals that Canada could cut energy supplies as a last resort in case of escalation with President Trump.

Recently, Ontario’s Premier proposed halting electricity exports to neighboring U.S. states. Although he later softened his stance and instead offered to expand nuclear energy, it is clear that energy remains a key lever in Canadian diplomacy.

Political Uncertainty and Preparations for War

Canada’s political system is experiencing its own turbulence. The departure of the long-serving Prime Minister in March brings uncertainty at a time when unity is most needed. His successor will inherit the responsibility of leading the country through a period of intense trade tension with the U.S. president.

The Finance Minister previously warned about the importance of preparing for a “trade conflict” and indicated that the government must have financial reserves ready. Her departure was seen by many commentators as a protest against insufficient preparedness. These warnings contribute to an atmosphere in which Canada is arming itself for the upcoming test.

Parliamentary elections are scheduled for October, but if the opposition manages to trigger a vote of no confidence, the date could be postponed. The premiers of Canadian provinces plan to travel to Washington in February to highlight the economic impacts of proposed tariffs and lobby for their reduction.

Trump’s Economic Philosophy: Tariffs as a Solution

President Trump and his economic team see high tariffs as the main tool of economic policy. A key figure in Trump’s administration advocates rates as high as 50 percent—more than twenty times the current average. His vision involves a radical reassessment of the global trading system.

This strategy is based on the assumption that an overvalued U.S. dollar and a weakened industrial base can be remedied by high tariffs. Proponents argue that a 20 percent tariff could maximize benefits for the U.S. economy. However, the economist admits that the success of this scenario is “very unlikely and the path to success is very narrow.”

Critics point out the risks: increased prices for consumers, disruption of global supply chains, and possible retaliations in the form of similar measures from trading partners. For Canada and other countries, the choice will be simple—either adapt or defend.

The conflict between Canada and President Trump thus becomes a test of strength in a new era of global trade relations. The outcome will influence not only the economies of both countries but also impact millions of workers and consumers on both sides of the border.