The U.S. is Canada's largest trading partner, accounting for 75 percent of Canadian exports. Canada is the largest energy supplier to the U.S., providing 98 percent of its natural gas imports and 93 percent of its electricity imports in 2020, according to Canadian government data.

Prime Minister Justin Trudeau said Canada “won’t back down” from President Trump’s threat to impose a 25 percent tariff and that Ottawa will respond accordingly until they are removed.

Canada's government announced on Friday that it would defer the implementation of controversial changes in the capital gains tax to Jan. 1 of next year.

Canada’s government is reversing course on a signature tax measure, deferring the implementation of an increase to capital-gains tax until after an election and a potential hit to the economy from threatened U.