Last news in Fakti

Canada tries to escape US trap

Carney will seek to reduce trade dependence on the United States

Aug 25, 2025 13:53 848

Canada tries to escape US trap  - 1

During his European tour, Canadian Prime Minister Mark Carney intends to focus on economic issues, including in the energy and defense sectors, amid deteriorating trade relations with the United States, reports the newspaper The Globe and Mail.

Today he will meet with Polish Prime Minister Donald Tusk and on Tuesday - with German Chancellor Friedrich Merz. The leaders will discuss strengthening bilateral trade relations, including in the field of energy and supplies of critical minerals, as well as cooperation in the defense sector. This European tour is “one of Carney's attempts to diversify Canada's international trade at a time of economic tension with the United States“.

Carney has previously stated that Ottawa will need to diversify its trade relations due to the tariff policy of the current US administration. As part of this strategy, last week, Canadian Industry Minister Melanie Joly visited Sweden and Finland, where she held a series of meetings with local companies, including representatives of the Swedish concern Saab, from which Canada may purchase JAS 39 Gripen fighter jets instead of the American F-35. As Joly stated during the trip, Ottawa plans to compensate for its trade dependence on the United States, including by developing ties with countries in Northern Europe.

Earlier, US President Donald Trump issued an executive order increasing tariffs on Canada from 25% to 35%. He also said it would be very difficult for him to strike a trade deal with Canada because Ottawa has announced its intention to recognize Palestine. At the same time, Canadian authorities have not announced the introduction of retaliatory tariffs on US goods.