Trudeau pivots Canada’s trade strategy: Reducing US reliance to eye global markets

Canadian Prime Minister Justin Trudeau wants the country to “walk away” from decades of deep economic reliance on the United States, and open doors to other global markets. On Tuesday, Trudeau secured a temporary reprieve from US tariffs on Canadian goods after a talk with US President Donald Trump.

According to a Financial Times report, this Friday, the Prime Minister will convene an economic summit in Toronto. The summit will bring together business leaders, policy experts, and labor unions to discuss expanding Canada’s global trade footprint.

“The goal is to make it easier to build and trade within our borders and diversify export markets,” Trudeau told reporters yesterday. The summit includes his Council on Canada-US Relations, featuring major auto industry executives and former provincial premiers.

Trudeau is lobbying industry leaders to act on growing concerns that Canadian businesses can no longer depend on unrestricted access to the US market.

US tariffs cause massive panic in neighboring countries 

Earlier this week, Trudeau negotiated a 30-day delay on 25% US tariffs on Canadian imports, except for energy, which would be taxed at 10%. These tariffs were initially part of former US President Donald Trump’s aggressive trade policies targeting Canada, Mexico, and China, which he linked to illegal immigration and drug trafficking concerns.

Canada’s economy has been considerably reliant on its good relations with the United States for more than a decade. Per a recent Reuters report, the US accounted for 75% of Canada’s total exports in 2022. The number has since trickled down to about 25%, which is still a substantial amount compared to the meager 1.5% of US total exports to Canada.

“Canada’s strategy for the past 30 years has relied on trade agreements that Trump has disrupted, and no longer can be relied on as a business case for Canada,” said John Manley, former Canada Deputy Prime Minister.

‘Buy Canadian’ slogan rises

The Canadian government’s efforts to reduce reliance on the US align with its citizens’ sentiments. A new poll by Angus Reid found that 91% of Canadians favor moving away from trade dependence on the US preferring diversification over mending relations.

Public frustration with US tariffs has bridged political divides, with citizens rallying around Canadian businesses. A growing “Buy Canadian” movement has emerged, where consumers are deliberately avoiding American products to support local industries.

Carole Chandler, a retired schoolteacher from Halifax, said she had canceled an upcoming trip to Florida in response to the US tariffs. “I love America and Americans,” she told the BBC. “But I don’t want to be one.”

The economic strain has ignited talks over Canada’s internal economic policies, particularly regarding energy infrastructure. Patriots have criticized Trudeau’s government for failing to develop sufficient oil and gas pipelines to expand exports beyond the US. 

Despite funding the Trans Mountain Expansion pipeline, which opened in May last year after years of delays and cost overruns, Canada still lacks major infrastructure to sell energy overseas.

“If we cut the red tape, we could have a pipeline built in two years,” reckoned Adam Waterous, chief executive of Strathcona Resources, Canada’s fifth-largest oil producer. 

Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here