Shortly after the conclusion of the 2024 U.S. Presidential election, the incoming President said he might impose a 25% tariff on imports from Canada and Mexico unless the countries did more to stem what he sees as the flow of migrants and illegal drugs into the U.S. The U.S. and Canada have one of the world’s largest trading relationships, with annual two-way trade of about $1.3 trillion Canadian. More than three-quarters of all Canadian exports are U.S.-bound. Canadian exports to the U.S. amounted to $440 billion U.S. in 2023. The top export categories were crude and processed oil, vehicles, machinery, other commodities, electrical equipment, plastics, and wood. Other important categories include aircraft, pharmaceutical products, and food. Almost all of Canada’s crude oil exports and much of its other energy products flow south. In 2023, energy exports accounted for $125 billion U.S., or 28% of Canada’s goods exports to the U.S. Vehicles is another large category with $63 billion U.S. moving across the border…