Carney Aims to Boost Non-U.S. Exports Amid Tariff Concerns
TORONTO (AP) — Prime Minister Mark Carney has expressed concerns that U.S. tariffs are stifling investment in Canada and has set an ambitious target: to double the nation’s non-U.S. exports over the next decade.
Carney, who plans to reveal the government’s budget on November 4, stated on Wednesday that Canada’s reliance on its close ties with the U.S. is becoming a vulnerability.
“The jobs of workers in sectors heavily impacted by U.S. tariffs—like auto manufacturing, steel, and lumber—are at stake. The uncertainty looming over our businesses is hindering their ability to invest,” Carney remarked.
U.S. President Donald Trump has posed a significant threat to Canada’s economy and sovereignty through tariffs, even suggesting Canada might become the “51st state.”
In his evening address to Canadians, Carney emphasized that the long-standing trend of increasing economic integration with the United States has come to an end.
“The United States has radically shifted its trade policies, imposing tariffs not seen since the Great Depression,” he observed.
“We cannot depend on a single foreign partner anymore; we need to take proactive steps for our own well-being.”
Though tensions with the long-time ally have somewhat lightened in recent months as Carney works towards a trade agreement with Trump, sectors like aluminum, steel, auto, and timber are still feeling the brunt of the tariffs.
Currently, more than 75% of Canada’s exports are destined for the U.S.
“We’re also re-engaging with global powers like India and China,” he added.
Canada serves as the primary export destination for 36 U.S. states, with goods and services worth C$3.6 billion (around US$2.7 billion) crossing the border daily.
The Canada-U.S. free trade agreement is due for a review in 2026.
Carney described Canada as an “energy superpower,” highlighting its position as home to the third-largest oil reserves and the fourth-largest natural gas reserves globally.
Notably, approximately 60% of U.S. crude oil imports come from Canada, alongside 85% of U.S. electricity imports.
Canada also ranks as the largest foreign supplier of steel, aluminum, and uranium to the United States and possesses 34 essential minerals and metals crucial to U.S. national security.
“I will be straightforward about the challenges and the decisions that lie ahead,” Carney stated. “To be clear, transforming our economy won’t happen overnight. It will require sacrifices and time.”
