The escalating U.S.-Canada trade dispute isn’t just about economics—it is about national sovereignty and political survival, explains Economist Justin Wolfers.
He argues that because a comprehensive trade pact already exists, President Donald Trump‘s threats are forcing Canadian Prime Minister Mark Carney into a corner where retaliation is his only option.
An Unnecessary Dispute
“We’re in a trade war,” Wolfers said on CNN, highlighting the deep irony of the current standoff. The U.S. and Canada already have a binding trade agreement: the USMCA, negotiated during Trump’s first term.
Trump’s sudden decision to scrap it and demand a new agreement is exactly what makes this fight “so much harder to resolve,” Wolfers explained.
