Why 🐸 NorthAmericanTradePolicy picked: The Real Risk of a Trade War With Canada: America Needs Its Neighbors to Counter China

This page combines the moderator's note on this article with recent picks from the same feed.

<a href="https://www.reddit.com/r/geopolitics/comments/1w4efsq/the_real_risk_of_a_trade_war_with_canada_america/" rel="nofollow noopener noreferrer ugc" target="_blank"> </a> [Excerpt from essay by Chad P. Bown, Reginald Jones Senior Fellow at the Peterson Institute for International Economics and a co-author of <a href="https://www.simonandschuster.com/books/How-to-Win-a-Trade-War/Soumaya-Keynes/9781668221310" rel="nofollow noopener noreferrer ugc" target="_blank">How to Win a Trade War: An Optimistic Guide to an Anxious Global Economy.</a>] In late October 2025, the automaker Honda had to indefinitely shutter a Mexican plant that manufactures its SUVs, thanks to an unanticipated shortage of parts. More than 2,000 miles away, in Canada, it had to slash the production of its popular Civic model in half. The shortage panicked companies across North America. Stellantis created a war room to monitor the availability of critical components, and Ford began to track the run-out dates for its inventory. Hundreds of thousands of Mexican and Canadian jobs were at risk if the impact of the parts shortage spread across supply chains that were highly integrated with those in the United States. Honda would later report production-related losses of roughly $300 million from the incident. The cause was a simple but deliberate Chinese policy. Beijing had suddenly banned global exports of semiconductors made by Nexperia, a little-known Chinese company whose parts go into airbags, braking systems, and other automotive essentials. Chinese President Xi Jinping made the move as retaliation against actions taken by the Dutch government and by U.S. President Donald Trump. Xi reversed the throttling of Nexperia’s exports only when Trump agreed, later that month, to delay the implementation of a new U.S. export control regime.  submitted by <a href="https://www.reddit.com/user/ForeignAffairsMag" rel="nofollow noopener noreferrer ugc" target="_blank"> /u/ForeignAffairsMag </a> <a href="https://www.foreignaffairs.com/united-states/real-risk-trade-war-canada" rel="nofollow noopener noreferrer ugc" target="_blank">[link]</a> <a href="https://www.reddit.com/r/geopolitics/comments/1w4efsq/the_real_risk_of_a_trade_war_with_canada_america/" rel="nofollow noopener noreferrer ugc" target="_blank">[comments]</a>

Why 🐸 NorthAmericanTradePolicy picked: The Real Risk of a Trade War With Canada: America Needs Its Neighbors to Counter China

Lead moderator note on this article

Additional moderation notes

What this feed curates

Recent picks from this moderator

Message to Canada: Continue to Fight Trump

The Fallout of the U.S.–Canada Trade War Won’t Be Limited to North America

Ambassador Greer Issues Statement on President Trump’s Response to Canada’s Continued Retaliation Against the United States

Where Canada can hurt America most

"Economists have long understood that coercive, unilateral tariffs invite retaliation, and that the resulting trade diversion and welfare losses fall on both sides, producing a suboptimal and difficult-to-rectify equilibrium," writes Phil Luck. Read more: https://bit.ly/3Te3Utw

ICYMI | When faced with President Trump’s economic pressure, most U.S. allies have fallen into line. Canada bucked the trend and stood firm. What do U.S.-Canada tensions mean for the future of free trade in North America? Watch State of Play: https://bit.ly/4xseJY6

Focus on the effects of U.S. tariffs on Canada and their pass-through to manufacturers, grocery shelves, and car lots is warranted, argues Phil Luck. But costs land hardest on towns along the U.S.-Canada border, where Canadian visitors were long the economic base. Read: https://bit.ly/3Te3Utw

Maîtres Chez Nous