How much can Canada fight back in its trade war with the US?

What the report says

BBC World News says Canada should not be underestimated in the growing trade dispute with the United States, even though the US is the larger trading partner overall. The report frames the conflict as an escalating tariff fight and says Canada has economic leverage because it is a major customer for many American states.

According to the BBC, Canada is the top market for exports from 26 US states, including Maine, Michigan and Wisconsin, and ranks among the top three customers in 45 of the 50 states. That geographic spread means pressure from Canadian trade decisions could affect businesses and workers well beyond the border states most often associated with cross-border commerce.

The piece highlights Prime Minister Mark Carney as a central figure in Canada’s response, suggesting he has room to maneuver as the dispute develops. It does not set out specific policy steps, but it argues that Canada’s role in US state-level economies gives Ottawa bargaining power in any wider trade confrontation.

More broadly, the story fits into a long-running pattern of US-Canada commercial dependence, where tariffs or other restrictions can have ripple effects across supply chains, agriculture, manufacturing and consumer prices. BBC’s Jessica Murphy presents the situation as a reminder that Canada’s influence in the trade relationship may be greater than its size alone would suggest.