How Canada could hit back to hurt the US economy - and Trump

A significant story is unfolding on the international scene. How Canada could hit back to hurt the US economy - and Trump Figure caption, 'Trump underestimates us': Doug Ford takes aim at US over tariffsByJessica MurphyCanada digital editor, Reporting fromTorontoPublished20 minutes agoWhat leverage does Canada, which sells about 70% of its goods to the US, actually have in this spiraling trade dispute with its southern neighbour, who also happens to be the world's largest economy? Canada is the top customer for 26 US states, including Maine, Michigan, and Wisconsin. And it is in the top three for 45 of the 50 American states, suggesting Prime Minister Mark Carney has room to manoeuver in a trade fight.

For now, Carney's planned Canadian retaliatory duties are strategic "dollar-for-dollar" countermeasures focused on steel, dairy, appliances, agricultural equipment, electronics, pulp and paper - though the list is still being finalised. Polls suggest a majority of Canadians would be unhappy if his government went in the other direction and made significant concessions to the US. That sentiment is shared by Ontario Premier Doug Ford, one of Trump's most vocal critics north of the border, who responded to the tariff threats by telling the US president to "kiss my ass".

The Details

Here are some areas that Canada can apply economic pressure. The big gunsCarney noted on Saturday that Canada supplies the vast majority of US natural gas and electricity imports and about 60% of crude oil imports. "I don't think they want us to stop sending any of that energy," he said.

Squeezing the US on energy is not in the current countermeasures, although various political officials have said explicitly it wasn't ruled out - and not all provincial premiers have been keen to use that leverage. Ford, whose Ontario province is home to Canada's auto manufacturing industry, is open to how far the dispute could go and said that an "energy surcharge is on the table". He briefly floated a 25% surcharge in 2025 on all electricity exports to the United States, which his government estimated would have impacted 1.

5 million homes and businesses in Michigan, Minnesota and New York. The country is also a major source of important commodities including potash - a product in fertiliser for which Canada is the world's top supplier. "I'd love to see run cars without any oil.

What Experts Say

I'll love to see him grow vegetables and fruit without the potash," Ford said on Monday. "President Trump underestimates us, and that's the biggest mistake. "Canada also has significant reserves of critical minerals like lithium, nickel and graphite.

The US is Canada's top destination for overall mineral exports, another point where Ottawa could apply pressure. Ford here also took the lead, saying in an interview with the Associated Press that the US "won't get a grain of sand out of Ontario". Figure caption, Watch: "Absolutely ridiculous": Canadians react to new tariff tensions with the USPurchasing powerCanada has already proven that it can cause economic pain in the US.

The development has drawn wide international attention, with diplomatic circles watching closely.