12/1/2025–|Last updated: 12/1/202508:07 PM (Mecca time)
Tensions are rising between the United States and Canada In light of the threats made by US President-elect Donald Trump to impose tariffs on Canadian imports, Which threatens economic relations between the two neighbors.
The writer said Nick Martin, In a report on the Deutsche Welle website, it says that while some analysts believe that Trump’s speech is nothing more than exaggerated threats, others see this speech as a disturbing attack, because there was no one among the president-elect’s supporters who saw Canada as a “big evil.”
Weeks after winning a second term in the White House, Trump threatened to impose 25% tariffs on all Canadian imports, including cars and auto parts. Starting on his first day in office.
Donald Trump blames Canada for illegal immigration and drug smuggling across the northern border, according to the report.
Since then, Trump has upped his rhetoric, joking that Canada could be included as the 51st US state, and even mocking Canadian Prime Minister Justin Trudeau – who resigned last week amid declining popularity – by describing him as “the Governor of Great Canada,” the report says. .
The writer quoted Douglas Porter, chief economist at the Bank of Montreal (BMO), as saying, “At first, there were concerns about the border, which I think Canada would be happy to address. Then they talked about the trade imbalance between the United States and Canada.” In his press conference today “The other, Trump talked about imposing economic hardship on Canada.”
Douglas Porter believed that Trump’s logic may change as he prepares to take office on January 20.
The reality of trade imbalance
For his part, Tony Stillo, director of the Canadian economy at the economic consulting firm Oxford Economics, said, “Trump is known to tear up his own deals in order to secure better deals.”
He added that although he helped negotiate the “United States, Mexico and Canada” agreement that replaced NAFTA (the North American Free Trade Agreement), he now describes it as “the worst deal ever.”
The writer says that while he supported and signed the United States-Mexico-Canada Agreement, which entered into force in 2020, Trump is now talking about the fact that Washington’s neighbors have failed to fulfill basic provisions of the agreement, from border control to trade.
The writer explained that the United States suffers from much worse trade imbalances with China, Mexico, Vietnam, Germany, and Japan compared to Canada. The trade deficit with Canada reached about 55 billion US dollars (53.6 billion euros) last year, according to the US Census Bureau.
By comparison, the trade imbalance between the United States and China was almost five times higher, at $270.4 billion.
The writer mentioned that Trump wrote on the social media platform “Truth Social” this week that the trade deficit actually represents support from the United States for Canada, saying that the largest economy in the world “is no longer able to bear the huge trade deficit that the Canadian economy needs to survive.” .
Trade between the United States and Canada is one of the most extensive and integrated trading partnerships in the world. In the first 11 months of 2024, the value of trade exchange amounted to 699.4 billion US dollars, according to the author.
Canada is the largest market for US exports, ahead of Mexico, Europe and China. US exports include trucks, vans, cars, and auto parts, in addition to fossil fuels.
The writer added that the United States is also the top destination for Canadian exports, with more than 3 quarters of Canadian goods and services exported across the southern border. For comparison, 53% of Germany’s exports go to other EU countries.
The writer stated that crude oil constitutes a quarter of Canada’s exports to the south, which in July 2024 reached a record high of 4.3 million barrels per day, according to the US Energy Information Administration.
Although the United States is a major oil producer, it imports millions of barrels of crude oil from Canada, the writer says.
The writer quoted the warning of Danielle Smith, Prime Minister of the oil-rich Canadian province of Alberta, that the United States would harm itself if Trump carried out his threats, and she wrote this week on the “X” platform, saying that “any proposed tariff would immediately hurt American oil refineries and make consumers pay more when they come.” Gas stations.
Problems for the oil and automobile sectors
The writer pointed out that Trump’s anger also targeted Canada’s auto industry, which the president-elect says has shifted manufacturing across the northern border in recent years, leading to layoffs of American workers.
The writer added that the North American automotive sector is deeply integrated, and spare parts and cars often cross the US-Canadian border several times during production.
According to the writer, Canadian auto executives have warned that tariffs could disrupt complex supply chains, leading to increased costs and higher prices for new cars in both countries.
The Canadian BNN Bloomberg network quoted economists as saying that US tariffs may reduce Canada’s gross domestic product by 2-4% and may push the economy into recession, according to a Deutsche Welle report.
Retaliatory measures
The writer reported that the ruling Liberal Party in Canada will not elect Trudeau’s successor until next March 9. While his departure leaves his country without political leadership, Canadian policymakers have drawn up a list of American imports that could face a backlash if Trump goes ahead with his plan to impose tariffs.
Analysts are likely that Canada will seek to impose customs tariffs on politically and economically sensitive American products, as it did in light of a similar trade dispute with Trump in 2018, which was resolved a year later.
According to the writer, Ottawa is considering imposing tariffs on American steel, ceramics, glass, flowers, and orange juice in Florida, among other goods.
But with Trump’s bluster and strange threats, the writer says, Canadian leaders do not yet know exactly what Trump is seeking. Are his tariff threats a negotiating tactic to improve border controls, boost energy and auto cooperation or increase Canada’s contributions to NATO?
