Canada would emerge from a trade war with much deeper scars than the US should it retaliate against President Donald Trump’s potential tariffs, economist David Rosenberg said.

The cheap Canadian oil America craves is becoming a key bargaining chip in President Trump’s threatened trade war.

President Donald Trump said a 25% tariff on Canada and Mexico could come on February 1 and that a universal tariff isn't off the table.

Now, those pieces of legislation could be a target of the Trump administration — particularly the digital services tax that requires large tech companies to make a hefty retroactive payment in June.

President Trump is using the threat of stiff tariffs on goods from Canada and Mexico to pressure the two nations to start renegotiating a continental trade deal.

The president said he planned to put tariffs on America’s neighbors on Feb. 1, as he signed an executive order mandating a sweeping review of U.S. trade policy.

Oil futures ended Wednesday at their lowest in almost two weeks, with U.S. benchmark prices notching a fourth straight session decline as investors weighed the potential impact of President Donald Trump’s energy policies and tariff threats.

His tariff talk, which started before the inauguration, has already had an impact on some oil stocks. Canada is the largest foreign source of U.S. crude, accounting for 60% of U.S. imports since 2020,

Canadian officials are preparing retaliatory measures if the new U.S. administration imposes tariffs on Canadian imports.

President Donald Trump’s repeated threats to slap steep tariffs on Canada and other friendly nations have left Toronto with some of the world’s worst-performing oil and gas stocks.