Trump and Karyn compete in trade battle

The trade war between the United States and Canada is escalating, as Washington has imposed punitive measures on Canada in response to the refusal or cessation of trade talks, leading to increased tariffs on Canadian products such as alcoholic beverages and dairy. The U.S. economy is roughly 13 times larger than Canada's, which puts Canada at a disadvantage in this confrontation and raises questions about its ability to continue escalating. Canada's economic reliance on the American market, which previously accounted for about 75% of its exports, is a factor that heightens its vulnerability. Experts suggest that Canada may adopt selective retaliation strategies and work to diversify its external partnerships, especially with the European Union, to reduce its dependence on the United States, amid expectations that the intensity of the escalation will remain limited due to economic and political pressures.

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