Canada could be in stronger position than U.S. if trade war breaks out

By David Climenhaga
Alberta Politics
January 19, 2025
Category: Business & Politics
Region: Canada, Canada West

Paul Krugman

Canada may find itself in a stronger position than the United States if a trade war breaks out between the two countries.  Don’t take my word for that. That’s Paul Krugman speaking. You know, the distinguished professor of economics. …Dr. Krugman argued that U.S. president-elect Donald Trump may imagine that the United States would have the upper hand, but it ain’t necessarily so. …“If you look at the actual composition of U.S.-Canada trade, it suggests if anything that Canada is in a stronger position if trade war breaks out,” he wrote. This is because, “outside oil and gas, U.S. producers have more to lose in terms of reduced sales in Canada than Canadian producers have to lose in reduced sales to the United States.” Moreover, Dr. Krugman speculated, “Trump really, really won’t want to impose tariffs on Canadian oil, which would directly increase energy costs in the U.S. Midwest.”

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