US Tariffs and What’s Next for Canada: Trump’s Strategy Through a Canadian Lens

Unlike the United States, Canada’s economy relies largely on exports, which made up about one-third of its GDP in 2023. 

In contrast, U.S. exports accounted for just 11 percent of its economy that year.

At the same time, more than 75 percent of total Canadian exports went south of the border in 2023, while Canada received only 18 percent of total U.S. exports that year...

• China Would Use Canada as a ‘Storehouse of Natural Resources’

The United States may require Canada to align with its China trade policy as a condition for continued access to the U.S. market, says Crowley, particularly to ensure Canada does not become a “backdoor” for Chinese goods entering America...
“That will be a tough pill for the Liberal Party of Canada to swallow because they have, to a considerable extent, hitched their wagon to China as a rising power,” he said, arguing that the Liberal Party “has been an active promoter of China as an important partner for Canada for many years.”

• In addition to aligning with the United States on trade policy, Crowley says Canada must also contribute more on security and defense. 
• “I think the biggest role that we play in that is that we have become a haven for money laundering, for the people who are actually behind the drug trade, which is mostly China,” he said...