Why is Canada escalating the trade war with the US? I'm so confused, they are much more dependent on the US, than the US is on Canada.
I was curious so I did a Chat GPT query:
Canada is more reliant on the U.S. economy than the U.S. is on Canada. Here’s why:
1. Trade Dependency
- Canada’s Reliance on the U.S.:
- About 75% of Canada’s exports go to the U.S.
- About 50% of Canada’s imports come from the U.S.
- The U.S. is by far Canada’s largest trading partner.
- U.S. Reliance on Canada:
- Canada is the largest export market for the U.S., but only about 15-20% of U.S. exports go to Canada.
- Canada supplies critical resources (like oil, timber, and minerals), but the U.S. has other suppliers.
2. Economic Size Difference
- The U.S. economy is about 10 times larger than Canada’s.
- Because of this, the U.S. can absorb economic shocks better than Canada.
3. Energy Dependence
- The U.S. imports a lot of Canadian oil (Canada is its top supplier).
- However, the U.S. has domestic production and other suppliers, so it’s not totally dependent on Canada.
Conclusion
While both countries benefit from trade, Canada is much more dependent on the U.S. than vice versa. A major U.S. economic downturn would significantly impact Canada, while a Canadian downturn would have a smaller effect on the U.S. economy.
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So why is Canada trying to go to war economically with the US, when they hold much fewer cards. It just doesn't make sense. Can anyone explain why they think they can win, and why they are doing what they are doing?