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Canada is increasingly decoupling from the US economy—the share of Canadian trade flows headed to the US has fallen to the lowest level in more than 30 years, with both US import and export shares dropping significantly since 2025. Trump’s trade war, consumer boycotts, and a formal Canadian government push to boost non-US trade have all reduced the country’s economic reliance on its southern neighbor.
When Donald Trump began his second term, he almost immediately began an unprecedented campaign to break the longstanding US-Canada trade relationship. Canada was among the first countries he hit with major tariffs, which, coupled with endless threats of annexation and clandestine meetings with separatist groups, forced the government in…
