In an increasingly multipolar world, Donald Trump’s plans to impose tariffs on Canada, Mexico, and the European Union threaten to erode the United States’ global standing. The move has even provoked a backlash from Canada, a historically close ally, where citizens have responded by launching a significant boycott movement.
With the notable exception of Israel, Trump has strained relations with nearly all of Washington’s traditional allies. Among the most unexpected targets of his rhetoric has been Canada, a country he has suggested should “become our cherished 51st state.” What was initially dismissed as political bluster has evolved into a persistent theme, with Trump reiterating the claim and elaborating that Canadian statehood would mean “much lower taxes, far better military protection for the people of Canada—AND NO TARIFFS!”
The Canadian public responded with fierce backlash when Donald Trump announced sweeping tariffs on the United States’ three largest trading partners—Canada, China, and Mexico. His proposed 25% tariff on imported goods from Canada and a 10% levy on energy exports threatened to exacerbate economic instability in a country with an already struggling economy. In response, the Canadian dollar plummeted to its lowest value against the U.S. dollar in over two decades.
Although a 30-day pause was placed on the tariffs following firm warnings of retaliation from Prime Minister Justin Trudeau, the damage had been done. A sense of betrayal has fueled a growing movement to boycott American goods and, more strikingly, to halt travel to the U.S. as a means of economic retaliation. Even if just 10% of Canadian travelers followed through, estimates suggest the American tourism industry could suffer a $2.1 billion annual loss.
While tensions escalate—marked by Canadian sports fans booing the U.S. national anthem at NHL and NBA games—Ottawa faces limited options for retaliation. Restricting crude oil exports, for instance, is virtually off the table, given the extensive network of cross-border pipelines that make energy interdependence between the two nations inescapable.
Canadians are very united in booing the US National Anthem. I thought Trump said the world would respect us?pic.twitter.com/IEznA0EYba
— Alex Cole (@acnewsitics) February 3, 2025
Canada’s Trans Mountain pipeline has signaled its intent to expand capacity. The pipeline offers a way for Canadian oil producers to sell to international markets without relying on the U.S. pipelines. It will be crucial for the economy as the Canadian government is forced to seek new customers abroad, including China. Over the long run, this could stop Canadian dependence on its southern neighbor.
The European Union, meanwhile, has shown a willingness to push back against Trump’s aggressive trade policies. According to the Financial Times, the EU is considering invoking the Anti-Coercion Instrument (ACI)—a mechanism originally designed to counter potential Chinese economic coercion—to restrict trade with major American tech firms. In what could be described as an act of retaliatory solidarity, Canada has already begun shifting its aluminum exports toward Europe.
At the same time, Trump’s provocative rhetoric regarding a potential U.S. takeover of the Panama Canal is likely to accelerate Chinese investment in Mexico’s Isthmus of Tehuantepec Interoceanic Corridor (CIIT) project. This trade route would offer a faster and more cost-effective alternative to the Panama Canal and could reshape regional logistics and weaken American control over global shipping.
Trump has also threatened military action against the Ansarallah-led government in Yemen, raising the specter of renewed hostilities in the Red Sea. The move is seen as retaliation for Yemen’s military actions in support of Gaza and against Israel. If carried out, it could trigger another blockade in the strategic waterway—echoing the Biden administration’s failed Operation Prosperity Guardian, which collapsed after incurring an estimated $200 billion in global trade losses in 2024 alone.
Trump’s moves appear less like impulsive disruptions and more like a systematic dismantling of the same institutions and mechanisms that have upheld American dominance on the world stage since the end of World War II. His threats to withdraw U.S. funding from South Africa, framed around contentious land reform policies, could push another BRICS nation further from Washington. If the Red Sea remains contested, South Africa—a crucial maritime hub—could retaliate against Trump by restricting access to U.S.-linked vessels.
His decision to gut USAID—a key pillar of U.S. soft power long used to extend Washington’s reach under the guise of humanitarian aid—signals an unraveling of the covert influence networks that have allowed American geopolitical supremacy to go unchallenged. With his threats to upend long-standing trade partnerships, undermine NATO, and impose tariffs on key allies, Trump’s policies are chipping away at the structures that have allowed the U.S. to project unrivaled economic and military power for decades. If his second term follows the same path as his first, the world may witness not just a shift in alliances but a deliberate dismantling of the post-war order.
Feature photo | AP Illustration | Jenni Sohn
Robert Inlakesh is a political analyst, journalist and documentary filmmaker currently based in London, UK. He has reported from and lived in the occupied Palestinian territories and hosts the show ‘Palestine Files’. Director of ‘Steal of the Century: Trump’s Palestine-Israel Catastrophe’. Follow him on Twitter @falasteen47
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