Why Canada? America's Northern Neighbor Seems an Unlikely Target for a Trade War

Canada is emerging as an unexpected focal point in a U.S. trade confrontation, despite being the largest buyer of American goods. The dispute comes as relations deteriorate after trade talks collapsed Aug. 21. Asked about potentially leaving the three-way agreement signed in late 2018, President Donald Trump said Canada has “ripped off” the U.S. for 50 years. Three weeks ago, the U.S. imposed 50% tariffs on $20 billion of Canadian products aimed at auto, dairy and alcohol exports. Canada retaliated with its own tariffs, and Trump moved to ban Canadian whey, most alcohol, and motorcycles and mopeds, while removing targets such as toilet paper, bed sheets and fishing rods. Canada’s trade equals 64% of GDP.