Why Canada? America's northern neighbor seems an unlikely target for a trade war

Canada could look like an odd target in a U.S. trade war because it is the top export destination for the United States, and most American goods enter Canada duty-free under the USMCA pact that began July 1, 2020. Still, President Donald Trump says Canada has “ripped off” the U.S. for decades and threatened to withdraw from the 2018 three-way agreement. After U.S.-Canada trade talks collapsed Aug. 21, Trump escalated: he imposed 50% tariffs on $20 billion of Canadian products and then moved to ban dairy byproduct whey, most alcohol, and motorcycles and mopeds, while excluding some items. Canada retaliated with tariffs.