Donald Trump is back in the White House, and with him, a renewed sense of foreboding hangs over Canada’s most vital relationship. His recent salvos — reviving the spectre of tariffs, calling Prime Minister Justin Trudeau a “governor”, and threatening “economic force” — have shattered any illusions of a reset. Instead, they’ve reopened old wounds from Trump’s first term, a time when Canada’s economic stability seemed at the mercy of his whims.
For Canadians, Trump’s return stirs fears of renewed trade tensions. The steel and aluminium tariffs, the contentious North American Free Trade Agreement (Nafta) renegotiation that birthed the United States-Mexico-Canada Agreement (USMCA), and the strategic use of trade as a political weapon — all are chapters from a playbook Trump appears ready to revisit. This time, however, there’s a new brazenness. His dismissive remarks about Trudeau and Canada hint at a deeper lack of respect.
To Trump, Canada seems less like a partner or rival and more like a neighbour whose economic dependence on the US can be exploited. This approach could exacerbate economic challenges and prompt retaliatory measures from Canada.
The US accounts for over 70 per cent of Canadian exports, from Ontario’s auto parts to Alberta’s crude oil and Saskatchewan’s wheat. So when Trump speaks of tariffs, these industries don’t just worry, they panic.
In Alberta, energy producers are bracing for potential disruptions to the US supply chain, which could devastate one of Canada’s most crucial economic lifelines. In Ontario, just-in-time manufacturing networks that rely on seamless cross-border trade are at risk of being derailed by tariffs.
