Ottawa focuses on diversifying amid rising tariffs. Trump hiked tariffs on Canada by another 10 percent last week, then still sat across from Mark Carney at an APEC dinner in South Korea. Canadian exporters feel it now in autos, steel, aluminum, and lumber. That pushes Carney to lock Asia demand this week, not next year.
Carney’s Asia Push Is About Leverage
Carney is chasing real options to ensure Canada can stand on its own two feet. He set a mission to double non-U.S. exports over the next decade, then hit Malaysia, Singapore, and Korea. He met Singapore’s PM to advance a Canada ASEAN deal aimed for 2026, and pitched investors who already have C$7.8 billion in the country. That buys him bargaining power that does not run through Washington.
Canada’s prime minister plainly stated when he was in Singapore: “There are huge opportunities for our workers and businesses here and across the Indo Pacific region, and we’re going to seize them.” Carney is telling the world he will replace U.S. demand where he can.
Auto And Steel Take The Hit
The 25 percent U.S. auto tariff has been live since April 3. That’s been hurting and continues to hurt Ontario hardest. Canada still sells over 75 percent of its exports to the U.S., about C$3.6 billion in goods and services crossing the border daily, so every new tariff bleeds margin. That is not cheap for plants or parts makers.
Ottawa has lined up counter tariffs and relief for firms that cannot source elsewhere, but these responses have had muted results at best. They help a bit, but it does not change who calls the shots on U.S. border taxes.
Donald Trump still sets the tariff knob by post or order, and he can turn it again. The U.S. Supreme Court will hear a case on his tariff powers on November 5, but until then, the President’s words are the law of the land. Carney has leverage only if he inks real Asia demand while the U.S. drags talks. He is trying to do that now at ASEAN and APEC, but only time will tell. The dinner optics give both sides cover while staff scrounge for a restart.
The next real move sits with Trump, who can drop or widen the 10 percent at any time. Carney’s move is deals, MOUs, and purchase commitments this week in Asia. If Ontario keeps the ad up after the pause, tariffs will likely only trend one way.
