Canadian Prime Minister Mark Carney has set a goal for Canada to double its non-U.S. exports over the next decade, amid the economic challenges posed by U.S. tariffs.
Carney Pushes Trade Diversification Plan
While addressing Canadians on Wednesday, he emphasized the need for Canada to diversify its trade partners. He highlighted the impact of American tariffs on Canadian industries, particularly the auto, steel, and lumber sectors.
Carney is scheduled to unveil the national budget on Nov. 4.
“The jobs of workers in our industries most affected by U.S. tariffs — autos, steel, lumber — are under threat. Our businesses are holding back investments, restrained by the pall of uncertainty that is hanging over all of us,” Carney stated.
He also acknowledged the shift in the U.S.’s trade approach and stressed, "We have to take care of ourselves because we can't rely on one foreign partner."
“We are re-engaging with the global giants India and China,” he added.
See Also: Trump Hints At Tariff Cash Giveaway To Americans After Record Revenue Surge
Canada Braces For 2026 USMCA Review
According to the U.S. Trade Representative (USTR), Canada was the largest market for U.S. exports and the third-largest supplier of imports in 2024, with total U.S.–Canada goods trade estimated at $761.8 billion.
The Trump administration’s plans to renegotiate the U.S.-Mexico-Canada Agreement (USMCA) have also added to the uncertainty, prompting Canada to seek diversification in its trade relations. The renegotiation will likely include a mandatory six-year review, with the first formal trilateral USMCA review scheduled for July 1, 2026.
Sectoral Trade Breakthrough Eyed
This announcement comes in the wake of ongoing discussions between Canada and the U.S. regarding sectoral trade deals. Canadian Minister of Industry Mélanie Joly had expressed optimism about the progress made in these talks, particularly regarding steel, aluminum, and energy, which are crucial for Canada’s economic stability amid the U.S. tariffs.
President Donald Trump had also hinted at a potential breakthrough in trade talks with Canada after meeting with Carney in October. However, no concrete assurances were provided, leaving the Canadian economy in the shadow of uncertainty caused by the U.S. tariffs.
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