Impact of Trump's Tariff Threats

Trump's threats to impose tariffs on Canada and Mexico highlight the precarious nature of trade relationships under his administration. Canada, faced with potential tariffs of up to 25% on goods and 10% on energy, reacted by allocating extra funds to border policing in an effort to appease these threats. This critical moment demonstrated how heavily interdependent both countries are on trade with the U.S., with Canada recognizing its significant role as an oil supplier. Ultimately, the situation was diffused but underscored the fragile balance of power in North American trade relations.