Trade tensions between the U.S. and Canada can create widespread disruptions across global supply chains due to their deeply integrated economies and influence on international trade networks. Here’s how:

1. Disruptions in Key Industries

Since the U.S. and Canada are among the largest trading partners in the world, disruptions between them affect major global industries, including:

a. Automotive Industry

Issue: Tariffs on steel and aluminum affect car manufacturing costs.
Global Impact: Higher vehicle production costs for manufacturers in Mexico, Europe, and Asia who rely on North American auto parts. Delays in cross-border part shipments slow production at major automakers like Ford, GM, and Toyota.
b. Energy Sector (Oil, Gas, & Critical Minerals)

Issue: U.S. restrictions on Canadian oil exports and critical minerals.
Global Impact: Increased energy prices in global markets, affecting major energy consumers like China, India, and Europe. Reduced supply of critical minerals (lithium, cobalt, nickel) used in EV batteries, impacting the global shift to renewable energy.
c. Agriculture & Food Supply Chains

Issue: Retaliatory tariffs on dairy, beef, and grain exports.
Global Impact: Higher food prices in regions that rely on U.S. and Canadian food exports, such as Asia, the Middle East, and Latin America. Disruptions in global wheat and soybean markets due to supply chain bottlenecks.

Read the rest of the article BELOW: