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Facing Trump’s tariffs, Trudeau eyes new export markets beyond US

FP Staff February 7, 2025, 23:45:42 IST

Canadian leaders gathered in Toronto to strategise shifting exports beyond the US amid tariff threats from President Donald Trump. The summit led by PM Justin Trudeau, addressed trade diversification, internal barriers and economic resilience. Meanwhile, rising nationalism fuels a “Buy Canadian” movement as tensions escalate between the two countries.

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Canada’s Prime Minister Justin Trudeau- Reuters file
Canada’s Prime Minister Justin Trudeau- Reuters file

Amid tariff threats from US President Donald Trump, Canadian leaders convened on Friday to develop a strategy for redirecting exports from the US to other markets.

The economic summit in Toronto set against a backdrop of abandoned brick kilns brought together Prime Minister Justin Trudeau, his ministers and numerous business leaders and policymakers to explore ways for Canada to diversify its trade beyond the US.

Trump on Monday said he would delay the imposition of tariffs on Canadian exports by 30 days in return for concessions on border and crime enforcement, in particular cracking down on fentanyl smuggling.

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Trump has repeatedly suggested Canada would be better off if it agreed to become the 51st U.S. state.

Peter Navarro, a senior Trump trade adviser, this week said Canada had become a leading source of small, duty-free shipments of drugs, also had ”big” visa issues and had let people on the ”terrorism watch list” enter the United States.

Canada sends 75% of all goods and services exports south of the border, making it highly vulnerable to U.S. sanctions.

Trudeau, echoing long-standing complaints from the business community, said internal trade barriers between the 10 provinces were hampering the economy.

”This is one of those moments and opportunities where … there’s a window open because of the context we’re in. We have to jump through it,” he said.

Before Trump lifted his tariff threat, Canadians canceled trips south of the border, boycotted U.S. alcohol and other products and even booed American teams at sporting events.

Trudeau, who made his comments in front of a huge Maple Leaf flag, said it was ”quite frankly, inspiring” that people were moving to buy Canadian products and vacation at home.

According to data released on Wednesday by national pollster Angus Reid, 91% of Canadians want their country to reduce its reliance on the United States in the future, favoring this approach over repairing the US-Canada relationship, though more than half still expressed a desire to attempt reconciliation. The survey also highlighted a significant rise in national pride, with 90% of Canadians closely following the issue, reflecting engagement levels comparable to those seen at the start of the Covid-19 pandemic.

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Shachi Kurl, president of Angus Reid told the BBC that the findings reflect “a moment of unity” in Canada. She added that the data shows Canadians have reacted to US tariffs with widespread anger. As the US is the largest buyer of Canadian goods, these tariffs risk pushing Canada’s economy into a recession and threatening thousands of jobs.

In addition to imposing tariffs, US President Donald Trump has repeatedly suggested—possibly in jest—that Canada should become a US state to avoid the levies. This remark has sparked outrage among Canadians, with many viewing it as a threat to their sovereignty.

The situation has fuelled a wave of patriotism in Canada, uniting people across political divides at a time when the country had been deeply polarized over Prime Minister Justin Trudeau’s leadership and policies.

A “Buy Canadian” movement has gained traction, with both politicians and the public encouraging support for local businesses and a boycott of US-made products in protest against the potential tariffs.

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With inputs from agencies

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