Canada is courting Asia after a challenging year of trade relations with the Trump administration

"Within a year, the US's second-largest trading partner has rapidly ramped up efforts to explore new deals with regional powers in Asia, or to revive talks that had been previously put on ice. As of November, the US has imposed a 35% tariff on all goods from Canada that are not covered by the USMCA. Canadian exports of steel and aluminum to the US also face a 50% duty."

""Canada took our extreme turn in our trade relationship with them pretty seriously," said Luck, "because this is a very big change in how the US has sort of traditionally treated Canada, and it has really drawn the ire of the Canadian people as a result." "So even if there was a somewhat palatable sort of middle ground, our partners also have democracies, and they need to find a solution that's palatable to their population," Luck added."

Canada has accelerated efforts to secure trade agreements with Asian partners including Indonesia, the United Arab Emirates, and ASEAN. The move follows US actions that included a 35% tariff on goods not covered by USMCA and 50% duties on Canadian steel and aluminum, plus threats to end negotiations. Canada matched some US levies and pursued diversification to reduce reliance on the US market. International trade experts attribute the pivot to stalled talks and doubts about reaching a favorable deal with the Trump administration. Phil Luck noted parallels with earlier diversification efforts and emphasized political constraints facing democratic partners.

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