{"id":178189,"date":"2026-08-22T08:24:15","date_gmt":"2026-08-22T08:24:15","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/178189\/"},"modified":"2026-08-22T08:24:15","modified_gmt":"2026-08-22T08:24:15","slug":"trump-tariffs-heap-up-as-canada-tries-to-curb-us-reliance-3","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/178189\/","title":{"rendered":"Trump tariffs heap up as Canada tries to curb US reliance"},"content":{"rendered":"

\"\"<\/a> The latest tariffs impact about 5.5 percent of Canadian exports to the United States (Cole BURSTON) <\/p>\n

US President Donald Trump’s 50-percent tariffs on certain Canadian goods which took effect Saturday delivered another blow to bilateral trade, renewing focus on Ottawa’s efforts to reduce dependence on its southern neighbor. <\/p>\n

Canadian Prime Minister Mark Carney’s strategy involves a search for new markets, a focus on domestic trade and the launch of major projects. <\/p>\n

– Inter-connected markets – <\/p>\n

The two economies are heavily inter-connected, with roughly 70 percent of all Canadian exports heading to the United States. <\/p>\n

Previous Trump levies on autos, steel, aluminum and lumber have hit Canada hard, forcing job losses and stunting growth. <\/p>\n

Canada has even entered a technical recession this year after two consecutive quarters of economic contraction. <\/p>\n

The latest 50-percent tariffs came into force after days of negotiations failed to produce an agreement. <\/p>\n

They impact some $20 billion worth of goods, or 5.5 percent of Canadian exports to the United States, targeting products ranging from hockey sticks to cement. <\/p>\n

Carney said Friday that Canada would match the US tariffs “dollar for dollar to protect our workers and businesses.” <\/p>\n

– Breaching the shield – <\/p>\n

The exports affected by the US tariffs include products that were previously protected under the North American trade pact, the United States-Mexico-Canada Agreement (USMCA). <\/p>\n

At first glance, “that’s frightening,” said Richard Ouellet, a professor of international economic law at Quebec’s Laval University. <\/p>\n

“Until now, the USMCA acted as kind of a shield. The Americans are opening a breach,” he told AFP. <\/p>\n

Trump declined to renew the USMCA on July 1, making it subject to annual reviews. <\/p>\n

While Trump ditching USMCA exemptions could forecast more extreme measures to come, Canada’s largest bank, RBC, predicted the first package of 50-percent tariffs won’t “significantly change broader Canadian growth.” <\/p>\n

“That’s because the new tariffs, while significant, will still impact a small segment of total trade,” RBC said last month, adding that around 80 percent of Canadian goods would still enter the United States tariff-free. <\/p>\n

– ‘Diversification’ – <\/p>\n

Since taking office in March 2025, Carney has focused on diversifying economic partnerships to reduce Canada’s reliance on the US market. <\/p>\n

“Canada has what the world wants,” Carney said in a statement following the breakdown of negotiations with Washington. <\/p>\n

“We will not allow any nation to determine our future,” he said. <\/p>\n

The prime minister has headed to China, India and Saudi Arabia and made several stops in Europe seeking deals to expand Canada’s economic relationships overseas. <\/p>\n

In January, he signed a preliminary agreement with China, providing for the import of electric vehicles to Canada. <\/p>\n

Relations with Europe have also been strengthened. In July, Canada selected the German firm TKMS to build its new fleet of submarines. <\/p>\n

Last month, Canada’s central bank said the economy was “showing signs of improving,” noting that some businesses were adjusting to US protectionism, including by finding new customers abroad. <\/p>\n

A report from Canada’s international trade minister also said that in 2025 the value of exports to non-US markets jumped by 11 percent, hitting 33 percent at one point — the highest level in more than four decades. <\/p>\n

– Domestic revitalization – <\/p>\n

Another factor that could help cushion the impact of Trump’s tariffs is a renewed focus on domestic trade. <\/p>\n

One of Carney’s first major initiatives as prime minister was federal legislation to reduce interprovincial trade barriers. <\/p>\n

Provinces have shown reluctance to lift their own restrictions, but Ouellet said that overall “the Canadian market has been reinvigorated and there is more domestic trade.” <\/p>\n

Carney has also tried to jumpstart domestic economic activity through his Major Projects Office, set up to reduce bureaucratic delays and grant quicker approval for select large-scale infrastructure initiatives. <\/p>\n

Carney has promised port expansion in Montreal and Vancouver and new mines to exploit critical minerals, as well as backing plans for an oil pipeline from Alberta to the Pacific. <\/p>\n

Overall, Ottawa has unveiled plans to spend CAN$115 billion ($83 billion) on infrastructure and an unprecedented CAN$82 billion on defense over the coming years. <\/p>\n

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