Canada may be more vulnerable economically in its escalating trade confrontation with the United States, but it has one important advantage: stronger public support for standing up to US President Donald Trump, Politico reports.


Trump has threatened Canada with further economic pressure as the two countries settle into a prolonged tariff dispute. “The U.S.A. will always be far bigger, richer, and stronger than Canada,” Trump wrote on Truth Social, warning that Canada could face “FAR WORSE” consequences if it does not “fall in line”.


The US economy is far larger than Canada’s, and Ottawa is already supporting major sectors such as aluminium and forestry affected by tariffs. But it remains unclear how long the Canadian government can sustain support for small and medium-sized businesses if the dispute continues.


Canada’s economic exposure to the US is substantial. Roughly three-quarters of Canadian exports go to the United States, accounting for nearly a quarter of Canada’s GDP. The latest US tariffs cover about $20 billion of Canadian imports, while total trade between the two countries was roughly $900 billion in 2025.


Canadian businesses are already warning of serious consequences. Dan Kelly, president of the Canadian Federation of Independent Business, said 40% of small businesses exporting to the US are affected by the new tariffs. “A third of them said that they expected their total sales to drop by 50 percent or more with some saying basically they expect all of their U.S. sales to dry up,” Kelly said.


Yet politically, Canada appears more prepared to absorb the economic pain. More than half of Canadians support Ottawa taking a hard-line approach to Trump, according to a recent Leger survey. Provincial premiers have also backed Carney's decision to walk away from trade talks.


“We’re stronger now than when the United States started this trade war,” Carney told reporters on Saturday. “Canada is becoming stronger and less dependent on America,” said Carney. “And we are just getting started.”


The political picture is different in the United States. Polling has shown widespread concern over tariffs, while some Republican lawmakers have openly criticised the administration's trade policies. Senator Susan Collins of Maine called the latest tariffs a “mistake”, warning they would “increase costs for Maine families.”


The approaching November midterm elections could make the issue more politically sensitive for Republicans, particularly in states and districts exposed to Canadian retaliation. One person close to the Trump administration said that if the dispute worsens, “congressional Republicans, in select states and districts, are going to be the first ones to feel it.”


David L. Cohen, the US ambassador to Canada under former President Joe Biden, said the pressure on Trump was likely to come primarily from businesses and consumers rather than Republicans. “That’s the pressure point. I don’t think it’s pure politics,” Cohen said. “I think it is the pressure from consumers, from businesses, from business associations.”


Carney has not ruled out returning to negotiations. After Trump threatened new tariffs on Canadian steel, cars, trucks and parts, the prime minister said Canada would return to the negotiating table if Washington changed its approach.


By Aghakazim Guliyev