>
Article snippet: OTTAWA — While President Trump has reserved his harshest words on trade for Mexico and China, Canada, one of America’s closest allies, has emerged as a major pressure point on trade, with the countries’ leaders trading barbs over lumber, dairy products, airplanes, and even magazine paper. In the latest move, the Trump administration imposed a huge tariff on a new aircraft made by Montreal’s Bombardier to compensate for what it deemed unfair subsidies by Canadian governments. The focus on Canada reflects the complexities that Mr. Trump faces in remaking the global rules of trade. He has threatened punitive tariffs on imported goods and vowed to bring manufacturing jobs back to the United States. He has promised to level the playing field with China and Mexico. But aggressively targeting China could disrupt the global supply chain, raising costs for American manufacturers. It could also inflame geopolitical tensions at a time when Washington needs Beijing’s help in dealing with North Korea. Relations with Mexico are already beleaguered over clashes on immigration, while taking on trade often means taking on exports from plants owned by American corporations. The sheer volume of trade with Canada makes it an easy target for actions against individual companies or industries. And the economy’s relatively small size, along with its economic and military dependence on the United States, gives Canada little strength for punching back. The Bombardier case is just one in ... Link to the full article to read more