This interview podcast discusses the potential economic impact on Canada if President Trump imposes a 25% tariff on Canadian imports. The interview begins by establishing the significance of US-Canada trade to the Canadian economy (exports constitute nearly a third of Canada's GDP, compared to around 10% for the US). The discussion then explores potential Canadian responses, including retaliatory tariffs on US goods like oranges and bourbon, and the more drastic measure of restricting Canadian oil exports to the US Midwest. A key takeaway is that Canada's heavy oil exports are crucial to US Midwest refineries, making oil restriction a powerful, albeit risky, retaliatory option. The podcast concludes by considering the potential for this crisis to spur economic diversification in Canada.
