How Canada is navigating Trump’s threats

On 26 September 2026, Canada's foreign minister Anita Anand discussed how her country navigated the trade and tariff threats posed by US President Donald Trump. The US and Canada, despite sharing the world's longest land border, have a long history of competition and tension in their bilateral relationship.

Anand highlighted that the Canada-United States Free Trade Agreement (CUSFTA) had ensured the continued flow of goods between the two countries. However, Trump's aggressive tariff policies were threatening this longstanding relationship, which had become even more intertwined over decades of integration. The auto industry, for instance, depended on continuous cross-border movement of parts and vehicles.

The Canadian government, under Prime Minister Mark Carney, took a multi-faceted approach to counter the US tariffs. One strategy involved negotiating sectoral tariffs, focusing on critical sectors like steel, aluminium, lumber, and automobiles. Another approach was to diversify trade relations with other nations, reducing dependence on the US market. Canada signed over 20 agreements in the fields of security, defence, and economy since 2025.

In the Indo-Pacific region, Canada pursued free trade agreements with Indonesia, was negotiating one with the Philippines, and aimed to conclude comprehensive economic partnership agreements with India and ASEAN before the year's end. This strategy aimed to create a new global order, less dependent on the US, and less vulnerable to Trump's tariff threats.