The Play-By-Play of the US and Canada’s Rocky Relationship (3 of 4)

Boycotting the U.S.

In response to the tariffs, Canadians threatened to boycott everything American. The Canadian government made the boycott easier to follow through by imposing a 25% tariff on about C$30 billion in US goods, including steel, aluminum, peanut butter, wine, appliances, and cosmetics. Canadian tourism is down significantly as well, especially in states like Florida that offer a warm, sunny escape from the miserable winters. American whiskey distillers such as the Kentucky-based Jim Bean felt the pain, even going so far as to shut down production for all of 2026.

Trump Becomes a Gift for the Liberal Party

When Trudeau announced he was stepping down, it was taken for granted that the Conservative Party, led by Pierre Poilievre, would have no problem winning the next election. After all, polls were showing them up 20%. However, due to the backlash caused by the tariffs and Poilievre’s populist “Canada First” messaging, the Liberals were handed a huge victory, and Mark Carney, a highly regarded economist who had never held public office, was elected prime minister.