TORONTO — Roughly $900 billion in annual trade between Canada and the United States — and with it, traditionally chummy bilateral ties — is on the brink of upheaval, with President Donald Trump threatening to impose sweeping tariffs on Canada as early as this weekend.

An across-the-board 25 per cent tariff, experts says, would be devastating to the Canadian economy largely due to an anticipated knock-on decline in the value of the loonie.

Oil prices slipped for a second day on Thursday after U.S. crude stockpiles rose more than expected, though attention remained on tariffs threatened by U.S. President Donald Trump on Mexico and Canada,

President Donald Trump's pick to lead the Commerce Department has told US lawmakers that Canada and Mexico can avoid blanket tariffs if they close their borders to fentanyl. "As far as I know, they are acting swiftly, and if they execute it, there will be no tariff," Howard Lutnick said on Wednesday during a confirmation hearing before senators.

Throughout President Trump’s election campaign and even in the days following leading up to Inauguration Day, the commander in chief was pushing a heavy tariff agenda, with great emphasis on China and Mexico.

U.S. President Donald Trump has pledged to place 25% tariffs on imports from Mexico and Canada from Feb. 1 if the two countries are not judged to be doing enough to stop the flow of fentanyl into the United States.

U.S. commerce secretary nominee Howard Lutnick suggests tariffs could come to Canada in two phases — and that the first phase on Feb. 1 could be avoided if Canada takes action on border security issues,