What is the tariff issue between Canada and the US
For many years, Canada and the United States have long been seen as compatible states, able to work in synchronization in all areas.
The two neighboring countries had historically developed very positive and mutualistic relations.
There was strong cooperation in all areas, from military to geopolitics, energy to trade.
But America's decades of trade and energy integration are on the brink of a major shake-up due to Donald Trump's tariffs following his re-election as President.
Canada, Mexico and others are not happy with Trump's tariffs.
While the tariffs are expected to hurt all three countries, they are expected to hurt Canada and Mexico, smaller economies that are deeply dependent on the US, more.
In particular, tariff tensions between Canada and the US have become a serious issue.
The new protectionist tariffs imposed by the US as part of its “America First” approach have pushed Canada to seek retaliation.
So why have things escalated so much and how is Canada developing a “strike back” plan?
Officials in both countries breathed a short sigh of relief.
On his first day in office, Mr. Trump held off on the tariffs as part of a blizzard of executive orders.
But the relief was short-lived.
In recent days, Mr. Trump told reporters that he still planned to pursue the tariffs.
In a statement in the Oval Office, Mr. Trump announced his request to impose tariffs of twenty five percent on Mexico and Canada.
The new United States leader said he would implement these tariffs on February first.
However, Canada does not seem to swallow this threat quietly.
So much so that the voices of “If Trump comes at us, we will cut the oil valve” started to rise in Ottawa.
Tensions flared when the Trump administration imposed additional tariffs on a range of products from steel to aluminum and Canada responded.
Although the two sides depend on each other for the exchange of large volumes of trade, Canada says “enough is enough”.
The United States, on the other hand, continues to say, “We are imposing these tariffs for our national interests.”
The most striking scenario on the agenda now is for Canada to restrict the flow of oil to the United States.
Millions of barrels of oil cross the border to American refineries every day.
If this supply were to suddenly stop, gasoline prices would soar, refineries would face a crisis, and United States consumers would immediately suffer.
For Canada, however, the move would mean a serious loss of revenue and unrest among producers.
So is it possible to go this far when both sides would suffer, or is it just a political bluff?
We will now analyze all this in depth and look behind the scenes.