Canada’s $155B Retaliation Cripples US Economy! & U.S. Jobs Collapse | What’s Next?
The United States and Canada have long shared one of the world’s most integrated trade relationships. For decades, goods, services, and raw materials flowed freely between the two countries, supporting jobs and industries on both sides of the border. However, this balance was disrupted when the U.S. government imposed a sweeping set of tariffs on Canadian and Mexican goods on February 1st, 2025. While these measures were framed as a response to border security and drug trafficking concerns, their real impact was economic. The U.S. was looking to put pressure on Canada’s economy, forcing the country into submission through aggressive trade restrictions.
The tariffs were wide-ranging, affecting most Canadian exports except for oil and energy, which faced lower rates. The strategy seemed clear—apply economic pressure, force Canada to concede, and reinforce American dominance in the trade relationship. The assumption in Washington was that Canada would absorb the blow and eventually negotiate under U.S. terms. However, this assumption was flawed. Instead of backing down, Canada responded with an economic counterattack that not only hurt American industries but also challenged the very idea that the U.S. could dictate trade terms without consequences.
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