Canada's trade war leverage: energy, minerals, and US border-state pressure
Canada is preparing retaliatory tariffs against new US trade measures, leveraging its position as the top buyer for 26 American states to pressure Washington in an escalating dispute. Prime Minister Mark Carney's planned counter-tariffs target steel, dairy, appliances, agricultural equipment, electronics, pulp and paper, matching US duties dollar-for-dollar. Canada supplies most US natural gas, electricity, and 60% of crude oil imports, with energy surcharges not ruled out. Ontario Premier Doug Ford suggested a 25% electricity surtax affecting 1.5 million US homes. Canadian boycotts of American alcohol and travel cost US exporters hundreds of millions, with midterm elections approaching in border states like Michigan and Maine.