The North American trade drama is unfolding against a backdrop of diverging economic performance that gives President Trump leverage in the trade war. Why it matters: The two nations are tightly linked by the trade patterns that the White House threatens to blow up.

President Donald Trump’s trade war will escalate this week, with another round of tariffs expected on allies and Chinese retaliatory duties on U.S. goods. Trump announced on Sunday that he would implement 25% tariffs on steel and aluminum imported into the United States,

Trump knows the United States has more leverage over its neighbors than they do over his country. But exploiting that position of strength could cause a historic rupture.