Canadian Prime Minister Mark Carney said Canada relied "too much on one economic partner" as President Donald Trump’s trade war pushes Ottawa to accelerate trade and investment with "trusted partners" beyond the United States.
Carney Says US Dependence Era Is Over
"The past 40 years has been a period of deeper economic integration with the United States," Carney said in a video posted to YouTube on Tuesday. "It was easy business, but it meant we relied too much on one economic partner. That time is over."
Carney said his government’s response is "development and diversification, not denial," arguing Canada must move faster rather than wait for ties with Washington to return to their previous footing. He said U.S. demands in failed trade talks showed Washington wanted "dependency, not a true economic partnership."
Canada Hits Back As Exports Diversify
Canada’s retaliatory tariffs took effect Tuesday on C$27.6 billion, or roughly $20 billion, of U.S. imports after Washington imposed 50% tariffs on an equivalent value of Canadian goods. Ottawa’s levies range from 15% to 50% and cover steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
Carney had pledged to match Washington "dollar for dollar." Canada also announced C$7.5 billion in new and enhanced support for workers and businesses affected by the tariff fight.
The economic challenge remains substantial. Reuters reported last week that the U.S. still received about 68% of Canadian exports year-to-date through July, down from roughly 73% previously. Canadian exports to the U.S. fell 6.6% in July, while exports to other markets rose 7.4%, according to Statistics Canada data cited by Reuters.
Carney has paired retaliation with diversification. His government has pursued new trade, defence and critical-mineral partnerships across Europe and Asia while expanding domestic procurement and infrastructure. "For the past year and a half, we have been steering our economy toward trusted partners," he said.
Trade Fight Widens Beyond Tariffs Again
The confrontation has also moved beyond tariffs. Trump recently threatened Bombardier Inc.’s (OTC:BDRBF) access to the U.S. market and again portrayed Canada as dependent on Washington.
"We can’t let American goods into Canada tariff-free while they charge our companies to export to them," Carney said.
Washington escalated Tuesday again by announcing restrictions on Canadian dairy, alcohol and motorcycles beginning Sept. 29, while formal trade negotiations remain suspended.
Photo courtesy: Shutterstock
Login to comment