How U.S.-Canada trade war could impact states like Minnesota

The trade relationship between the U.S. and Canada has taken another sharp turn. Sky-high U.S. tariffs on some Canadian goods took effect over the weekend after trade talks between the two countries fell apart. President Trump is now threatening another 50 percent tariff on Canadian automobiles, auto parts and steel starting next year.

Canada says it will retaliate, and Ontario Premier Doug Ford warned that Canada could cut off electricity and critical minerals to the U.S. if the conflict worsens.

That’s a particularly important story here in Minnesota, where Canada is a main trading partner and where people and businesses regularly cross the border in both directions.

Livio Di Matteo is a professor of economics at Lakehead University in Thunder Bay, Ontario, right over Minnesota’s border with Canada. He joined Minnesota Now host Nina Moini to talk about Minnesota and Canada’s trade relationship.

Use the audio player above to listen to the full conversation.

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