Canada Speeds Up Diversification Efforts Amid Ongoing Trade War with US
Canadian Prime Minister Mark Carney said that his country will move faster to reduce its economic reliance on the US as retaliatory tariffs take effect. The tariffs, which cover about $20 billion in American goods, have been imposed by Canada in response to a series of trade actions taken by President Donald Trump.
The trade war between the two countries began after Trump returned to office and imposed tariffs on Canadian goods despite having negotiated and repeatedly praised the North American trade agreement during his first term. Many of those tariffs violate the pact.
Carney acknowledged that the latest US trade actions will cause short-term pain but said it pushes Canada to move faster on investment, infrastructure, and trade diversification. He contrasted Canada's deteriorating relationship with Washington with its growing ties to countries he described as more reliable.
Canada has been steering its economy toward trusted partners for the past year and a half, Carney said. He defended the retaliation, saying Canada was matching the latest US measures dollar for dollar while supporting affected workers and industries and accelerating efforts to expand trade with other countries.