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Trump’s Economic War

26 0
04.02.2026

For decades, the relationship between the United States and Canada belonged to the category of geopolitical facts so stable they barely required analysis. A shared border without fortifications. Deeply integrated supply chains. Energy interdependence so extensive it blurred the distinction between domestic and foreign trade. If alliances were marriages, this one looked less like a romance than a long, practical partnership — occasionally dull, rarely dramatic, and almost never existential.

That assumption has now been punctured. Loudly.

Commerce minister holds meeting with Kazakh minister for expanding economic coop

Donald Trump’s threat to impose a 100 per cent tariff on Canadian goods is not merely another episode in his familiar trade brinkmanship. It marks a deeper shift: the weaponisation of economic power against a close ally for exercising sovereign choice. Not over war. Not over security. But over trade policy — specifically, Canada’s decision to strike a limited, pragmatic arrangement with China.

The question raised is not whether tariffs “work” in some abstract economic sense. History has already delivered its verdict on that front. The more unsettling question is political: can the United States, under Trump’s vision, tolerate even mild strategic autonomy among its allies? Or does loyalty now require submission?

Rupee gains 3 paisas

Trump’s argument, stripped of its rhetoric, is straightforward. If Canada becomes a conduit for Chinese goods entering the US market, punishment will follow. The premise rests on the idea that Canada’s trade decisions are legitimate only insofar as they align with Washington’s preferences. Sovereignty, in this view, is conditional.

That logic would have been foreign to earlier American statecraft. During the Cold War, the United States tolerated — sometimes grudgingly — independent economic relations among allies, from West Germany’s trade with........

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