Canada may be the smaller economy in its escalating trade dispute with the United States, but analysts suggest it holds more leverage than it might appear.

Canada is the top export customer for 26 US states, including Maine, Michigan, and Wisconsin. It also ranks among the top three trading partners for 45 of the 50 American states.

That geographic and economic reach gives Prime Minister Mark Carney significant room to manoeuvre as the two countries dig deeper into a tariff confrontation.

The figures suggest that any prolonged trade war would not leave the United States unaffected, with dozens of states standing to feel the economic consequences of a breakdown in cross-border trade.