Kathmandu [Nepal], August 23 – US President Donald Trump’s latest 50% tariffs on certain Canadian goods have added fresh pressure to bilateral trade prompting Canada to accelerate efforts to reduce its dependence on the US market.
The tariffs which took effect Saturday affect about $20 billion worth of goods or 5.5% of Canada’s exports to the United States. Targeted products include hockey sticks, cement and other goods that were previously covered by the United States-Mexico-Canada Agreement (USMCA).
Canadian Prime Minister Mark Carney said Ottawa would match the tariffs “dollar for dollar” to protect Canadian workers and businesses.
About 70% of Canada’s exports currently go to the United States. Earlier US tariffs on automobiles, steel, aluminum and lumber have already contributed to job losses and weaker economic growth. Canada has entered a technical recession after two consecutive quarters of contraction.
Carney has responded by seeking new markets and strengthening domestic trade. He has travelled to China, India, Saudi Arabia and Europe to pursue new economic partnerships. Canada also recorded an 11% increase in exports to non-US markets in 2025.
Ottawa is additionally promoting major infrastructure and energy projects including port expansion critical-mineral mines and a proposed oil pipeline to the Pacific.
Despite the new tariffs, RBC said about 80% of Canadian goods would still enter the US tariff-free.
