Canada Sticks to CUSMA Amid US Tariff Disputes, Prioritizes Homegrown Economy

In a robust declaration of economic resilience, Canadian Prime Minister Mark Carney reaffirmed Canada's unwavering commitment to the Canada-United States-Mexico Agreement (CUSMA) despite an increase in US tariffs on certain Canadian exports not covered by the trade pact. The tariffs, which have climbed to 35%, overshadow cross-border commerce, prompting Canada to strengthen its domestic economy.

Carney emphasized the importance of economic self-reliance, suggesting that Canadians must become their own best customers. "We can provide for ourselves more than any foreign government," Carney stated, highlighting a move towards creating well-paying jobs and using Canadian resources domestically. He noted the Canadian government's disappointment with the tariffs but reiterated its steadfast support for CUSMA, the world's second-largest free trade agreement by trading volume.

Despite relatively low average US tariff rates for Canadian goods, major sectors like lumber, steel, aluminum, and automobile face significant duties. The Prime Minister announced initiatives to protect Canadian jobs, enhance industrial competitiveness, and diversify export markets. He dismissed US claims that link the tariffs to fentanyl trafficking, citing Canada's active role in combating cross-border drug flow.

Carney also affirmed ongoing discussions with the US to address the fentanyl crisis while insisting on Canadian domestic priorities, with efforts directed at reducing internal trade barriers and fostering a unified national economy. Canada, alongside provincial and Indigenous partners, is pursuing substantial nation-building projects expected to drive over half a trillion dollars in investments, he added. (ANI)

(With inputs from agencies.)