"While Canada may talk tough, it is all bluster. Canada is highly dependent on the US, and there is no way to establish or reshuffle relationships with other countries to replace the US as a market.
Canada is already trading with most of the world’s countries, and ostensibly, they are already buying the quantity of Canadian goods that they want and can afford.
Currently, about three-quarters of Canada’s merchandise exports go to the United States, representing nearly one-quarter of national GDP, while imports from the U.S. make up about 16.7 percent of GDP.
In 2023, exports to the U.S. accounted for 16.8% of Canadian GDP and supported more than 2.6 million Canadian jobs.
Furthermore, most of Canada’s foreign direct investment comes from companies attempting to bypass US tariffs by manufacturing in Canada and exporting to the US. Now, because of the tariffs, Canada’s received foreign direct investment is declining.
Canada’s concession on the Reagan television advert underscores a recurring pattern of tough talk followed by retreat under U.S. pressure."
Caption this Meme