Breaking News:Trump’s trade war with Canada has backfired on America. Now he has a crucial meeting with Mark Carney By Bryan Mena…see what dey said👇👇👇

Breaking News:Trump’s trade war with Canada has backfired on America. Now he has a crucial meeting with Mark Carney
By Bryan Mena…see what dey said👇👇👇

Trump’s Trade War with Canada Has Backfired on America. Now He Has a Crucial Meeting with Mark Carney
By Bryan Mena, CNN Business
Updated 6:00 PM WAT, May 6, 2025
Washington (CNN) — Canadian Prime Minister Mark Carney will visit US President Donald Trump at the White House on Tuesday in what could be one of the most contentious meetings between the neighboring countries’ leaders in years. Canada, America’s second-largest trading partner and a long-standing ally on national security and commerce, has been battered by Trump’s aggressive tariff policies, which have sparked a retaliatory trade war with far-reaching consequences. But the damage hasn’t been one-sided: Trump’s trade war with Canada has backfired on American businesses, consumers, and the broader economy, setting the stage for a high-stakes encounter between two leaders with starkly different visions for the future of US-Canada relations.
A Trade War Ignited by Tariffs
The roots of this economic conflict trace back to Trump’s re-election in November 2024 and his subsequent imposition of sweeping tariffs on Canadian goods. Citing national security concerns and a desire to address trade deficits, Trump announced 25% tariffs on Canadian cars, auto parts, steel, and aluminum, along with a 10% tariff on Canadian oil imports. These measures, which partially disrupted the United States-Mexico-Canada Agreement (USMCA)—a trade deal Trump himself brokered during his first term—marked a sharp departure from decades of free trade between the two nations.

Canada, under the leadership of then-Prime Minister Justin Trudeau, responded swiftly with retaliatory tariffs, imposing 25% duties on C$30 billion (approximately $22 billion) worth of US imports, followed by an additional 25% tariff on C$29.8 billion in response to Trump’s metal tariffs. Canada also targeted US car imports, hitting American automakers where it hurts most. These tit-for-tat measures have escalated tensions, with Canada’s retaliatory tariffs now totaling C$60 billion ($42 billion) on American goods, including orange juice, whiskey, peanut butter, and appliances.

The trade war has upended a symbiotic economic relationship. Canada accounts for 14% of all US trade and is the top destination for US exports, with $349.4 billion in goods—primarily energy and cars—shipped north in 2024. Meanwhile, the US is Canada’s largest export market, absorbing over three-fourths of its goods, including softwood lumber, steel, and aluminum. The deep integration of the two economies, particularly in industries like automotive manufacturing, means that tariffs on one side inevitably harm the other.

The Backfire on American Businesses and Consumers
Trump’s tariffs were intended to bolster US manufacturing and reduce trade deficits, but they have instead inflicted significant collateral damage on American businesses and consumers. The Federal Reserve’s latest Beige Book report highlights a “material drop” in Canadian tourists visiting border regions like Northern Washington and Southern California, hurting retailers and hospitality providers. This decline in cross-border tourism is a direct consequence of strained relations and economic uncertainty.

American companies, from multinational corporations to small businesses, are reeling from the increased costs. General Motors CEO Mary Barra told CNN last week that tariffs will cost the company between $4 billion and $5 billion in 2025, threatening profitability and potentially leading to higher car prices for consumers. Smaller enterprises are equally vulnerable. Beth Fynbo Benike, owner of Busy Baby, a baby products company, reported that a single container of goods now costs her nearly $230,000 to import due to tariff-related expenses. These costs are likely to be passed on to consumers, fueling inflation at a time when the Federal Reserve is already grappling with price pressures.

The tariffs have also disrupted supply chains critical to American industries. Canada supplies 80% of the softwood lumber imported to the US, essential for housing construction, and is a major source of fertilizer for American farmers. By targeting these sectors, Trump’s policies risk increasing construction costs and food prices, further squeezing American households.

Critics argue that Trump’s narrative of “protecting American jobs” overlooks the interconnected nature of North American trade. The USMCA, designed to promote regional manufacturing, relies on seamless cross-border supply chains. Tariffs disrupt this framework, raising costs for American manufacturers who depend on Canadian components. Moreover, Trump’s claim that the US “doesn’t need” Canadian goods—such as energy, cars, or lumber—ignores the reality that Canada is a major supplier of crude oil, natural gas, and electricity to the US, resources critical to energy security and economic stability.

Carney’s Rise and the Canadian Response
The trade war has not only hurt the US but also reshaped Canadian politics, inadvertently strengthening Mark Carney, the former governor of the Bank of Canada and the Bank of England. Carney, who assumed leadership of the Liberal Party in March 2025 after Trudeau’s resignation, capitalized on a surge of Canadian nationalism sparked by Trump’s tariffs and provocative rhetoric about annexing Canada as the “51st state.” His “elbows up” campaign slogan—a hockey term symbolizing a defensive, fighting stance—resonated with voters furious over Trump’s perceived betrayal.

In a stunning electoral upset, Carney led the Liberals to victory in Canada’s federal election on April 28, 2025, reversing the party’s dismal polling numbers from earlier in the year. His defiant post-election speech underscored the stakes: “We are over the shock of the American betrayal, but we should never forget the lessons.” Carney’s mandate is clear: to protect Canada’s sovereignty and economy while navigating a fraught relationship with the US.

Carney has taken a hard line, vowing to maintain retaliatory tariffs until the US shows “respect” for Canada’s sovereignty. He has also pushed for economic diversification, announcing a C$5 billion trade diversification fund to develop ports, railroads, and other infrastructure to reduce Canada’s reliance on the US market. Plans for a national trade and energy corridor, including a potential oil pipeline from Alberta to Eastern Canada, signal a strategic pivot away from American dependence.

The Sovereignty Question
Adding fuel to the fire, Trump’s repeated musings about making Canada the “51st state” have inflamed tensions. In a March 2025 Truth Social post, Trump claimed the US subsidizes Canada by $200 billion annually and provides “free military protection,” arguing that annexation would benefit both nations. During a November 2024 interview with NBC, he doubled down, calling Canada a “cherished state” and suggesting economic pressure could force compliance.

Carney has firmly rejected these overtures, declaring at the White House on Tuesday, “Canada is not for sale, it won’t be for sale, ever.” His stance reflects widespread Canadian outrage, with polls showing a 70% drop in cross-border travel to the US and growing boycotts of American goods. The visit of King Charles III to deliver Canada’s Speech from the Throne on May 27—bypassing the traditional role of the governor general—further underscores Canada’s assertion of sovereignty in the face of Trump’s rhetoric.

The White House Meeting: A Chance to Reset?
Tuesday’s meeting between Trump and Carney marks their first face-to-face encounter since a “productive” phone call on March 28, 2025, during which both leaders expressed a desire to negotiate a new economic and security partnership. Carney has framed the talks as an opportunity to address “immediate trade pressures and the broader future economic and security relationship,” but he insists negotiations will be “on our terms.”

The agenda is daunting. Carney seeks to ease Trump’s tariffs, particularly on autos and metals, which threaten Canada’s economy. He also aims to renegotiate aspects of the USMCA, arguing that Trump’s tariffs exploit loopholes in the agreement. Trump, meanwhile, is under pressure from American businesses and border-state governors, some of whom—like Vermont’s Phil Scott—have publicly criticized the trade war as detrimental to US interests.

Yet Trump’s nonchalant attitude—claiming on Monday that he’s “not sure what [Carney] wants to see me about”—suggests a lack of urgency. His administration is preoccupied with tariff negotiations with other trading partners, including China and the EU, which may delay substantive talks with Canada until later in the summer.

A Critical Examination of the Narrative
The mainstream narrative, as reflected in much of the coverage, portrays Trump’s tariffs as a reckless misstep that has harmed both nations while elevating Carney as a savvy leader capitalizing on Canadian unity. However, this framing warrants scrutiny. While the tariffs have undeniably raised costs for American businesses, some of Trump’s supporters argue they could pressure Canada into concessions, such as increased NATO contributions or stricter border security measures to curb fentanyl smuggling—a key concern for the White House.

Moreover, the narrative of Canada as a victim overlooks its own economic vulnerabilities. Canada’s heavy reliance on the US market—over 75% of its exports—limits its leverage, and Carney’s diversification plans, while ambitious, will take years to bear fruit. The Liberal Party’s electoral victory, while impressive, resulted in a minority government, raising questions about Carney’s ability to maintain domestic unity amid regional tensions, particularly in energy-rich Alberta.

On the US side, the economic pain is real, but Trump’s tariffs align with his broader “America First” agenda, which resonates with his base. The claim that tariffs will inevitably backfire ignores the possibility that short-term disruptions could yield long-term gains if they force trading partners to renegotiate on US terms. However, the lack of a clear strategy from the Trump administration—beyond vague calls for “deals”—undermines this argument, as does the mounting evidence of harm to American consumers and industries.

The Road Ahead
The outcome of Tuesday’s meeting could set the tone for US-Canada relations for years to come. A breakthrough seems unlikely given the entrenched positions, but even incremental progress—such as a temporary tariff pause or a commitment to formal negotiations—could ease economic pressures. The upcoming G7 summit in Alberta in June, hosted by Carney, will be another critical juncture, especially as it coincides with the expiration of a 90-day pause on some of Trump’s “reciprocal” tariffs.

For now, both nations are locked in a high-stakes game of economic brinkmanship. Carney’s resolve to “fight, protect, and build” resonates with Canadians, but his ability to secure concessions from Trump will test his reputation as a global economic strategist. Trump, meanwhile, faces growing domestic pushback as the costs of his trade war mount, yet his unwavering commitment to tariffs suggests he’s prepared to weather the storm.

As the two leaders sit down in the Oval Office, the world will be watching. The stakes couldn’t be higher—not just for the US and Canada, but for the global trade system that Trump’s policies threaten to unravel.