In terms of trade relations, the U.S. under President Donald Trump has been far more of a foe than a border friend to Canada. Other NATO allies know the feeling. America's domestic divisions, bouts of isolationism, and Trump's widespread tariffs have left allies jittery.
The U.S.-Canada trade war escalated when Canada issued retaliatory tariffs on the U.S. on Aug. 25. Trump had previously imposed 50% tariffs on Canadian goods after trade negotiations collapsed, telling Canadian leaders to "fall in line" or face new tariffs on more products. Meanwhile, the U.S.-Mexico-Canada Agreement (USMCA), proposed by Trump to replace NAFTA and signed in 2020, has not fallen apart, but this summer the U.S. declined the USMCA's optional 16-year extension. That means it will be reviewed jointly and annually, adding more uncertainty to the increasingly tense trade relationship.
