Canada Aims to Double Non-US Exports Amid Tariff Challenges

Toronto, Oct 23 (AP) Prime Minister Mark Carney has announced an ambitious plan for Canada to double its non-US exports over the next decade, highlighting how American tariffs have stifled investment.

Carney, who is set to unveil his government's budget on November 4, explained that Canada's past advantages, rooted in close ties with the US, have now turned into vulnerabilities.

"The jobs of workers in our industries most affected by US tariffs — autos, steel, lumber — are under threat. Our businesses are holding back investments, restrained by the pall of uncertainty that is hanging over all of us," Carney stated.

US President Donald Trump has challenged Canada's economy and sovereignty, particularly through tariffs, even provocatively suggesting Canada could become “the 51st state.”

In an address to Canadians, Carney emphasized that the era of an ever-closer economic relationship between Canada and the US is over.

"The US has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression," he noted.

"We have to take care of ourselves because we can't rely on one foreign partner." Relations between the neighboring allies have somewhat improved recently as Carney pursues a trade agreement with Trump, but tariffs remain detrimental, particularly in the aluminum, steel, auto, and lumber sectors.

Currently, over 75% of Canada’s exports are directed to the US.

"We are re-engaging with the global giants India and China," he announced.

Canada is the top export destination for 36 US states, with nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services crossing the border each day.

The free trade deal between Canada and the US is up for review in 2026.

Carney described Canada as an "energy superpower," boasting the third-largest reserves of oil and the fourth-largest reserves of natural gas globally.

Approximately 60% of US crude oil imports and 85% of US electricity imports are sourced from Canada.

Additionally, Canada is the largest foreign supplier of steel, aluminum, and uranium to the US and possesses 34 critical minerals and metals that are of strategic interest to the Pentagon.

"I will always be straight about the challenges we have to face and the choices we must make," Carney asserted. "To be clear, we won't transform our economy easily or in a few months — it will take some sacrifices and some time." (AP) SCY SCY

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