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Canada launches trade infrastructure fund amid rising tensions with US

  • By Al Mayadeen English
  • Source: Agencies
  • 28 Mar 2025 23:47
2 Min Read

The initiative aims to strengthen Canada's global trade ties and build economic resilience as the era of close economic integration with the US appears to be drawing to a close.

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  • Canada's Prime Minister Mark Carney attends a joint statement with French President Emmanuel Macron Monday, March 17, 2025 at the Elysee Palace in Paris. (AP Photo/Thomas Padilla; Pool)
    Canada's Prime Minister Mark Carney attends a joint statement with French President Emmanuel Macron Monday, March 17, 2025 at the Elysee Palace in Paris. (AP Photo/Thomas Padilla; Pool)

Canada's newly appointed Prime Minister Mark Carney announced on Friday the creation of a new infrastructure-focused fund designed to reduce Canada's reliance on trade with the United States, as cross-border tensions continue to escalate.

"We will create a new fund called the Trade Diversification Corridor Fund to build the infrastructure that will help diversify our trade, create new jobs and drive economic growth," Carney said during a press briefing.

Our response to the U.S. tariffs is to fight, protect, and to build. That means building the infrastructure to help diversify our trade partners, create good jobs, and grow our economy.

— Mark Carney (@MarkJCarney) March 28, 2025

The initiative aims to strengthen Canada's global trade ties and build economic resilience as the era of close economic integration with the US appears to be drawing to a close.

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Carney noted that the government would also work to encourage increased collaboration among Canadian ports to adapt to shifting global dynamics.

Fund to assist affected workers

The announcement comes just days after Carney revealed plans for a 2 billion Canadian dollar (approximately $1.4 billion) strategic response fund that would assist workers affected by US trade measures—particularly in the automotive sector—if the Liberal Party secures victory in the upcoming April 28 election.

Read more: Canada weighs substitutes for US-built F-35 stealth fighters

Relations between Ottawa and Washington have soured in recent months, with the US government imposing a 25% tariff on all non-energy Canadian goods and 10% on energy products, citing alleged Canadian inaction on cross-border drug trafficking and irregular migration.

US President Donald Trump later followed up with a sweeping 25% tariff on steel and aluminum imports from Canada.

In retaliation, Canada implemented 25% duties on nearly $30 billion worth of American goods and has filed challenges against both sets of tariffs at the World Trade Organization (WTO).

  • US tariffs
  • United States
  • global trade
  • trade infrastructure fund
  • Canada
  • Canadian economy

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