From Strategic Partnership to Managed Frictions: The Political Economy of U.S.–Canada Relations

This article examines the evolving dynamics of U.S.–Canada relations during 2024–2026, arguing that the partnership has transitioned from seamless alignment to a state of managed friction. Despite deep integration in trade, security, energy, and border management, recent disputes over tariffs, defense spending, environmental policy, and migration demonstrate that the relationship now requires active negotiation rather than automatic harmony. Drawing on the theoretical lens of asymmetrical interdependence (Keohane & Nye, 1977) and the literature on middle power diplomacy, the analysis highlights how structural imbalances in size and power allow the United States to impose costs, while Canada relies on institutions and coalition-building to safeguard its interests.