Why it matters:
The U.S. and Canada maintain one of the world’s largest bilateral trade relationships, valued at over $900 billion in 2024. A prolonged rift could reverberate through both economies, particularly in the manufacturing and energy sectors, which rely heavily on cross-border supply chains.
The big picture:
Canada — a major supplier of steel, aluminum, and vehicles to U.S. companies — has been hit hard by Trump’s tariff measures this year, including 50% duties on steel and aluminum imports and 25% on cars. Only a few exemptions have been granted for specific products.
The U.S. has also imposed a 10% tariff on Canadian lumber, prompting Ottawa to retaliate with counter-tariffs on U.S. goods and restrictions on certain American products in some provinces.
By the numbers:
$900 billion — Total trade between the U.S. and Canada in 2024
$5.9 billion — Decline in Canadian exports to the U.S. from January to July 2025
40% — Drop in Canadian steel and aluminum exports
7% — Decline in auto and auto parts exports
What he's saying:
Canadian Prime Minister Mark Carney said Ottawa remains open to resuming talks “as soon as the United States is ready,” emphasizing that previous rounds had shown “tangible progress.”
Carney stressed the need for “a balanced approach” — maintaining firmness against Washington’s unilateral actions while addressing legitimate U.S. concerns.
On the ground:
The escalating trade dispute is already affecting Canada’s industrial heartland. Electric vehicle factories, including General Motors’ plant in Ontario, are facing operational challenges and uncertainty amid rising tariffs and disrupted trade flows.
The Trump administration argues that the tariffs are necessary to protect American jobs and reduce dependence on foreign suppliers — a position that has resonated with parts of the U.S. manufacturing sector despite criticism from business groups and economists.
Go deeper:
Trump Terminates U.S.-Canada Trade Talks Over Ontario Ad
Zohre Khazaee - seyed mohammad kazemi
