Warnings over China reliance as Canada seeks to reduce U.S. trade dependence
Latest news on WhatsApp أجدد الأخبار على واتسابAnalysts have warned that Canada’s efforts to reduce its trade dependence on the United States, amid escalating tariff-related tensions, could drift into overreliance on China unless Ottawa expands into large and diversified markets. Reuters quoted experts as saying diversification is a sensible goal, but shifting a significant share of trade weight from Washington to Beijing carries risks tied to political volatility, supply chains and strategic sensitivities.
In that context, the news agency said Prime Minister Mark Carney’s government is pushing for broader trade arrangements less reliant on the United States by expanding Canada’s network of deals and partnerships, including the idea of limited plurilateral agreements among like-minded countries. Reuters added that the strategy faces a hard constraint: the U.S. still absorbs close to 70% of Canadian exports, making any reduction a structural challenge rather than a purely political choice.
Statistics Canada data underscores the scale of the relationship. Exports of goods and services to the United States rose from $179.3 billion in the fourth quarter of 2024 to $191.0 billion in the first quarter of 2025, highlighting the continued weight of the U.S. market in Canada’s trade.
The report added that Ottawa is working to broaden cooperation tracks and trade deals with partners across multiple regions as part of a longer-term push to increase exports outside the United States, while noting that China remains a large but complex partner, reinforcing the case for spreading risk across more than one market.
