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Tue, 25 Aug 2026

Tue, 25 Aug 2026 How Canada could hit back to hurt the US economy - and Trump

What leverage does Canada, which sells about 70% of its goods to the US, actually have in this spiraling trade dispute?

* Canada supplies 70% of its goods to the US, making it a significant trading partner.
* Ontario Premier Doug Ford says President Trump "underestimates us" and threatens retaliation.
* Canada has room to maneuver due to its importance as a customer for many US states.
* Polls show that most Canadians support Ottawa's decision to drive a hard bargain against the Trump administration. Economic Pressure Points
* Canada could apply pressure by limiting energy exports, such as natural gas and electricity.
* Ford suggests imposing an "energy surcharge" on electricity exports to the US.
* Canada is also a major supplier of wood products, which could be targeted in retaliation. Impact on US Economy
* Trump's tariffs will cost American households $1,100 annually, according to the Yale Budget Lab.
* The trade dispute will hurt US workers who depend on Canadian imports.
* British Columbia Premier David Eby notes that US consumers will feel the impact of tariffs in various goods. Midterm Elections
* Ford suggests targeting Republican US states with retaliatory measures.
* The trade dispute could further sour American public opinion on the economy.
* The midterm elections are approaching, with the economy front and centre for voters.