Canada Is Planning to Reduce Trade Reliance On the US

 

By

Dr. Somita Chakraborty


Canadian PM Mark Carney recently announced that considering US tariff on Canadian goods, Canada decided to reduce trade reliance on the US. Currently, the US is the largest trade partner of Canada.

Majority of the Canadian export flows to the US market. In his second term, President Trump imposed a number of tariffs on Canada and on other countries. Some of these tariffs hit Canada hard, for example, 35% tariff on all imports, which don’t comply with the Canada-US-Mexico Agreement, 50% tariff on aluminum and steel, 25% tariff on imported cars and trucks, 35% tariff on softwood lumber and 25% tariff on wooden products and kitchen, bathroom cabinets.

Sector specific tariffs, like, tariff on softwood lumbers, wooden products, aluminum and steel, resulted job loss. Canadian overall export, foreign investment, jobs, political and economic perspectives – all are heavily reliant on the US. In this context, changing approach of the US put Canada in a complex situation.

Canadian PM Carney announced that by 2035, Canada will double the exports to non-US markets. PM Carney said that Canada is focusing on developing new partnership in different parts of the world. In this regard, he expressed his interest to deepen ties with global giants like, India and China.

India and Canada, recently, re-engaged to strengthen relations. Both the countries are also trying to boost bilateral trade. According to reports, India invited Canadian PM Carney to attend Artificial Intelligence Action Summit, which is going to be held in India in February 2026. During the visit, there is a possibility, that both the PM could discusses issues to boost bilateral trade.

Both the countries are also planning to revive free-trade negotiations, which were paused in 2023. Currently, India-Canada bilateral trade amount around $30 billion annually and has possibility to cross $50 billion annually in the near future.

For detail

US terminates all trade negotiations with Canada over TV ad row

India invites Canada's Mark Carney for talks with PM Modi to boost trade and economic ties: Canadian media


Comments

Post a Comment

Popular posts from this blog

Parliament discussion on Status of investigation on the 1985 Kanishka Bombing

  By Dr. S. Chakraborty On 6 th February, 2025, Shri Kartikeya Sharma, member of Rajya Sabha, expressed his concern regarding the investigation and prosecution of those responsible for the 1985 Kanishka bombing. The attack claimed 329 lives, among them majority were India-origin, and 24 Indian nationals. He asked the current status of India's engagement with the Canadian Government and other partners, regarding the investigation and prosecution of those responsible for the Kanishka bombing and the details thereof; he also asked the details of the steps being taken by the Ministry to ensure that all perpetrators of the bombing are extradited to India; and whether there is any mechanism in place to ensure that the Canadian Government is held accountable for any perceived lapses in their investigation or prosecution of the perpetrators, if so, the details thereof? Answering the question, the Minister of State in the Ministry of External Affairs Shri Kirti Vardhan Singh clearly ...
Read more

MOS (PM) is going to visit Papua New Guinea

  By Dr. Somita Chakraborty Mr. Pabitra Margherita, Union Minister of State for External Affairs and Textiles [MOS (PM)] is going to visit Papua New Guinea on 16 th September, 2025, to represent PM Shri Narendra Modi at the commemorative events marking the Island countries 50 th anniversary of   Independence. The official statement of the Ministry of External Affairs stated that ‘he is expected to have   bilateral meetings with the political leadership of Papua New Guinea.’ He is also expected to  interact with the Indian diaspora and the business community of the Papua New Guinea. The visit with help to continue India’s engagement with the leadership in the Pacific Island  Countries (PIC). For detail Visit of MoS(PM) to Papua New Guinea (September 16, 2025)
Read more

Rare Earth Minerals and US-China Trade Face Off

  By Dr. Somita Chakraborty F rom the beginning of 2025, the US-China relation witnessing severe problems regarding rare earth minerals. Recently, China has begun to impose restriction on its rare earth mineral export. As a response, US president Trump announced to imposed all total 130% tariff on Chinese goods. In this context, it becomes necessary to find out a few answers, they are, 1)       What are rare earth minerals? 2)       What is its importance? And 3)       Its connection with US-China trade face off What are rare earth minerals? ‘Rare earth minerals’ are 17 metallic elements in the periodic table. These metals have unusual amount of conductive and magnetic properties. These qualities make them very useful when alloyed or mixed in small quantities with iron. As the name suggest, ironically, these metals are not rare and are found in many places around the world. Some of them...
Read more