Canadian Prime Minister Mark Carney has made diversifying Canada’s export markets a central goal after the United States imposed new tariffs on Canadian goods.

For decades, Canadian trade has been heavily weighted toward the United States, with roughly 75 percent of exports going to that market.

Carney, who previously led the Bank of Canada and the Bank of England, has traveled to more than two dozen countries since taking office in March 2025, including visits to China and Saudi Arabia. Government figures show that exports to non‑U.S. markets rose 11.1 percent in the previous year while shipments to the United States fell 3.7 percent.

Analysts say building ports, rail lines and pipelines is needed to reach new buyers, and demand for Canadian energy, minerals, lumber and agricultural products remains strong in Europe and Asia.

China is Canada’s second‑largest trading partner, though exports to China represented only 4.5 percent of total trade last year. A recent agreement to lower tariffs on electric vehicles and increase market access for canola aims to boost that share. Foreign Ministry officials flagged concerns about market access barriers, regulatory opacity, intellectual property theft and potential military diversion.

India represents another potential market, with exports of $4 billion in 2025, or 0.5 percent of total, and the two countries have resumed negotiations for a comprehensive economic partnership agreement. Diplomatic tensions over the 2023 killing of a Canadian citizen in British Columbia have eased since recent talks between Carney and Prime Minister Narendra Modi.

The European Union, with which Canada has a provisional trade deal, accounted for $178.6 billion in two‑way trade last year, but its mature manufacturing and agribusiness sectors limit new export opportunities.

University of British Columbia professor Werner Antweiler said the integrated nature of the two economies makes a trade war disadvantageous for both sides, and that Canada is investing heavily in export infrastructure to mitigate disruptions.

Carney has set a target of doubling non‑U.S. exports by 2035, but the pace of diversification remains uncertain.