Canada's Strategic Shift: Boosting Trade Beyond the US

Canadian companies are actively seeking to mitigate economic fallout from US tariffs by expanding trade with global allies and smaller markets, government data reveals. Though these efforts have reduced dependency on the US, Canada's largest export market, the scope for diversification has its limits, according to economists and consultants.

Stuart Bergman, chief economist at Export Development Canada, emphasized the importance of diversification, clarifying that Canada isn't looking to replace US business entirely. Recent data show a 10% drop in Canadian exports to the US within a year, while exports of goods like cars, steel, and aluminum primarily suffered. In a response, Global Affairs Canada reaffirmed the country's commitment to expanding its trade footprint amid global trade challenges.

Despite Prime Minister Mark Carney's push for economic independence from the US, exports to the US still significantly outpace those to other countries. Data indicate a rise in Canadian exports to close allies, including the UK, EU, Australia, and new markets, but none match America's trade volume. The government is working towards a trade deal with the US as they continue to navigate an interlinked economy.

(With inputs from agencies.)