The Daily North America Averted a Trade War — for Now
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Feb 4, 2025 
Ana Swanson, trade reporter, Matina Stevis-Gridneff, Canada bureau chief, and Simon Romero, international correspondent, dive into the brinkmanship that nearly sparked a trade war between North America. They discuss last-minute negotiations and the economic fallout looming over Canada and Mexico. The trio unpacks how tariffs could wield political power and examine Prime Minister Trudeau's potential retaliatory measures. They also explore the broader implications of U.S.-Mexico relations and the emotional stakes of shifting alliances in trade dynamics.
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Economic Impact of Tariffs
- 25% tariffs on Mexico and Canada could cause severe economic damage.
- Recessions and massive job losses were predicted in both countries.
Trump's Rationale for Tariffs
- Trump's stated rationale for tariffs was border security, focusing on migrants and fentanyl.
- He also cited trade deficits as a secondary concern.
Canada's Border Statistics
- Canada's fentanyl contribution to the U.S. is minimal, around 1%.
- Irregular border crossings from Canada are a small fraction of total U.S. crossings.