Export Growth
September 8, 2026
Canada seeks to reduce reliance on US as trade war escalates
Written by Stephanie Ritenbaugh
Tariffs rose Tuesday on aluminum and aluminum products imported from the US into Canada — the latest countermove in an increasingly vitriolic relationship between the US and its once-closest ally.
And Jean Simard, president and CEO of the Aluminium Association of Canada, said that relationship won’t heal overnight.
“It’s going to take some time to get back to the table because of the way things unfolded and the total mistrust that this has created for Canada with regards to the US,” Simard told AMU.
Meanwhile, Canada has been taking more of its business elsewhere — with a growing share going to Europe and Mexico.
For Europe, Canada could be a path to distance itself from China, Simard noted.
“If you need critical minerals, if you need energy, if you need aluminium, Canada is there to provide it,” Simard said. “And to us, it’s interesting because it dilutes our dependency on the US market.”
The Associated Press reported Tuesday Canada is exploring ties with the European Union that could stop just short of membership, a Canadian official familiar with the discussions said.
‘A level playing field’
In the US, Charles Johnson, president & CEO of the Washington D.C.-based Aluminum Association, said the organization supports “a level playing field” for the industry to invest and grow.
“External tariff harmonization, strong trade enforcement and market certainty are key to the industry’s long-term success and must be prioritized in North American trade discussions,” Johnson said in an email to AMU. “Any agreement should put the national and economic security interests of the United States and the broader North American region first, while ensuring that trade policies do not create an artificial advantage for imports at the expense of US producers and manufacturers.”
At the same time, continued trade uncertainty and tariff escalation are detrimental to business investment, he said.
“The aluminum industry needs greater long-term clarity and predictability around the regional and global trading environment to make investment decisions, expand US capacity and support sustained growth,” he said.
Canada to cut business ties
In a video posted Tuesday, Prime Minister Mark Carney said the country is working to reduce its reliance on the US.
In the most recent round of negotiations, the United States tried to restrict Canadian trade with other countries and its ability to protect its French language and culture, Carney said. The US terms would have also undermined critical industries, including autos, steel and forest products, he said.
“The most fundamental issue is that the cumulative US demands revealed that they wanted us to become even more reliant on them, not less,” Carney said. “In too many areas, they wanted dependency, not a true economic partnership. Last spring, I warned that America is trying to break us, so they can own us.”
Carney noted Ottawa has put in place capital to support businesses and workers who are being hit hardest by US tariffs, including targeted help for aluminum, autos and steel.
