Canada and the U.S.: When close friends start arguing

Tue Jul 15, 2025

Canada and the U.S.: When close friends start arguing

Canada and the U.S. have always been strong allies and trading partners. But recently, their relationship has become tense—especially during Donald Trump’s time as U.S. President.

🔹 The Trade Problem:
The U.S. buys more from Canada than it sells to them, leading to a trade gap of $63 billion. Trump didn’t like this and called it unfair.

🔹 The Tax Issue:
Canada introduced a small 3% tax on big tech companies like Google and Facebook. This would only earn Canada $5 billion over five years—not a lot in global trade. But Trump got angry and threatened to punish Canada with a 35% tax on its products. Canada dropped the tax to avoid trouble.

🔹 Blaming Canada:
Some U.S. leaders also wrongly blamed Canada for fentanyl (a dangerous drug) entering the U.S., even though only 0.1% of it comes from Canada.

📉 What is Canada doing now?
Because of all this pressure, Canada is looking for new friends and trade partners:

It’s talking to the UK and Europe.

It’s reaching out to India and showing signs it may act against extremist groups like the Khalistan movement.

📚 A lesson from India and Nepal
In 2015–16, India blocked trade with Nepal over political issues. Nepal faced big problems—no fuel, fewer medicines, slower economy—and turned to China for help. That damaged India-Nepal relations.

⚠️ The message?
Pushing your friend too hard—especially over money—can push them away.

🌐 Why it matters
In today’s world, countries want choices. If they’re pressured too much, they’ll find new partners. The U.S. should think about this before using threats on its closest allies like Canada.

What do you think—should countries use pressure or partnership in diplomacy? 🤔👇

#CanadaUS #GlobalPolitics #TradeRelations #IndiaNepal #Diplomacy #Geopolitics #InternationalAffairs #StudentEdition

KARTHICK CV
Founder & Director - CV ACADEMY | Educator | TNPSC Exam Trainer | Personality Development & Career Guidance Coach | Keynote Speaker | Guiding Students to Learn with Clarity & Confidence

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