In order to “win” a trade war, a country must first have something that other countries want or need. This basic rule defines every other aspect of the conflict, from tariffs to monetary isolation. When it comes to the US there has long been a misconception that Americans “feed off global labor” and that the dollar’s world reserve status is the country’s only point of leverage.
This is not really the whole story.
Reserve status is helpful, but another thing the US has that most countries do not is (greater) free market access, which generates economic momentum. In other words, even in blue states like California, the US does business more freely and has less socialist regulation than the vast majority of the world and this is why foreign exporters see America as a golden market for their goods.
It’s a bit ironic, but, there are many countries that could, over time, match or surpass the US as a coveted consumer market; “winning” a trade war by becoming more independent and successful. However, none of them will do it because this would mean giving more freedom to their citizens to purchase what they like and operate businesses without constant bureaucratic constraints.
This is why socialism and communism will always lose in an economic war with a country that has free markets. They cannot compete because they restrict their own population’s ability to compete. Without a healthy consumer market the only thing these nations can do is produce and export to more free economies willing to buy.
“We need to fight these tariffs dollar to dollar” -Doug Ford
“As Donald trump is trying to inflict pain on every Canadian, that we inflict pain right back” -Also Doug Ford@fordnation a question which you seem to have not contemplated:
What happens when you fight “dollar to… pic.twitter.com/5gD4O8HjiW
— Viva Frei (@thevivafrei) August 24, 2026
Tariffs might be viewed as an anathema to this free market flow. They are, after all, a tax on corporations importing foreign goods. This assumes that corporate sourcing can’t adapt. This has proven false as Trump’s tariffs have not led to the inflationary spike that many critics predicted. Tariffs have only added around 0.5% to the CPI and companies are gradually shifting to domestic suppliers.
America is unique because for decades the country has been treated as an “open air market” by foreigners, and America has obliged them. Tariffs against US made goods are common; US tariffs against foreign goods? No so much.
It’s quite revealing that the very moment the Trump Administration took action to enforce even moderate protections on US trade, every other government jumped directly to accusing Trump of “attacking them” and “declaring war”. The double standard is obvious: Everyone else can use tariffs, the US can’t.
Canada, for example, has used tariffs on goods from almost every other country in the world for many years, including some US goods. No one accuses Canada of “waging war” on the world, because no one is clamoring to get access to Canada’s consumer markets. America, on the other hand, is supposed to play the role of the cash cow.
To do otherwise is an egregious crime against the world order.
The US has many financial problems and pitfalls, yes, but this doesn’t change the fact that most of the planet relies on the US as a place to sell their stuff. In fact, America makes up over 30% of total global consumer markets. China and all of the EU combined cannot match that kind of allure for exporters. They can’t even afford to buy their own goods and trinkets at a level that would sustain them. Like it or not, without US consumers the global economy falters.
The escalating rhetoric from Canada is a perfect example of a socialist nation wrongly believing they have leverage in a fight against a larger opponent. Canadian officials assert that they have trade weapons that can harm the US, but is this really true? Let’s take a look at come of the threats made by Canadian leaders.
Canada Can Shut Off Electricity Exports To The US?
In his blustering speeches on the fight with the US, Canadian Prime Minister Mark Carney argued that Canada supplies over 85% of US electricity imports (largely to the Eastern Seaboard). Other officials such as Ontario Premier Doug Ford and Quebec Premier Christine Fréchette have openly called for these power supplies to be cut off in order to “punish” the US for tariffs.
Doug Ford threatens to cut off electricity to the United States.
Elbows up, motherfuckers! pic.twitter.com/Q044kXX6cR
— Mark Slapinski (@mark_slapinski) August 25, 2026
What they don’t mention is that Canada’s electricity makes up less than 1% of all US power. In other words, this is empty posturing. They are relying on the stupidity and lack of research of average social media posters to repeat such fallacies in the hopes of frightening American voters.
The tactic is similar to what the Iranians have been doing – Playing on social media hype while omitting the dire realities of their ground game.
Canada Can Shut Off Oil Exports To The US?
The US is the world’s largest oil producer and is a net exporter. Strictly speaking, the US does not need any Canadian oil in order to function. On the other hand, the Great White North does supply around 60% of all foreign oil going to the US. Wouldn’t the loss of this oil cause some kind of damage to the American economy?
PM Mark Carney says Canada fuels U.S. growth, supplying 99% of its natural gas imports, 85% of electricity imports, and 60% of crude oil imports.
“I don’t think they want us to stop sending any of that energy.”
Follow: @dimosnews pic.twitter.com/p9mHLImtep
— Dimos News (@dimosnews) August 23, 2026
Possibly, but Canadians calling for this measure might not understand how their own oil infrastructure works. Around 70% of Canada’s oil supply travels out of Alberta using pipelines that cross into US territory (the Enbridge Pipelines). These pipelines go through the US east to Ontario.
This goes for natural gas as well, which Canada also transports using pipelines that travel through the US. Shutting down energy flows to the US would mean shutting down energy flows to the largest population centers in Canada. Not very smart.
The Loss Of Canadian Goods Would Be Detrimental To The US?
Besides oil, what does the US actually buy from Canada? Well, a lot of cars and car parts, machinery, engines, metals and lumber. Most of these goods used to be produced in the US until outsourcing to foreign countries killed US manufacturing, mining and logging. Meaning, the US took a massive jobs hit by opening up its markets to countries like Canada. Canada wasn’t necessarily doing the US a favor.
Canada’s advantage over all other countries except perhaps Mexico is that they are the most convenient source for these goods; that does not mean they are not the only source. They are replaceable. Scaling to adapt to the loss of Canadian auto parts, for example, would be frustrating due to extensive integration, but it can be done within 1-2 years.
In the meantime, what do Canadian leaders think is going to happen to all the manufacturers in their country who are suddenly cut off from American markets? They’re going to leave, and they will likely move their operations to the US to avoid the 50% tariffs.
At bottom, Mark Carney’s decision to walk away from the US trade deal which reduced tariffs to a reasonable level is going to prove disastrous because Canada has nothing that the US needs, and the US has something Canada needs very much (the largest consumer market in the world right next door).
The economic advantages Canada has enjoyed simply through proximity to the US cannot be denied. It seems foolish for Carney to scrap a deal with limited tariffs in favor of a 50% sledgehammer. It appears as if he believes Canada is entitled to limitless US access, as if Canada is another American state.
But let’s say that the socialists get everything they think they want, including the eventual downfall of the US economy. Let’s say they find some way, some Achilles Heal, that brings the US down. Canada and most of the world would only suffer further with the loss of 30% of global consumption. It would not be the grand victory they imagine. Instead of simply accepting moderate tariffs, they would rather blow themselves up.
Tyler Durden
Tue, 08/25/2026 – 08:40
