US In Shock As Canada Takes Its Trade Deals Away To The EU At 0% — What This Means?

Canada is the U.S.’s top oil supplier – sending 97% of its crude to America at a discount. Now, a tariff?
In early 2025, escalating tensions between the United States and Canada reached a critical point. On February 1, 2025, President Donald Trump issued executive orders imposing a 25% tariff on all Canadian imports, excluding energy resources, which faced a 10% tariff. These tariffs were set to take effect on February 4, 2025.
The reason for this as stated by the USA is the concern over illegal immigration and drug trafficking, particularly fentanyl, entering the U.S. through its northern and southern borders. The administration argues that these measures are necessary to compel Canada and Mexico to strengthen their border controls and curb the flow of illicit substances and unauthorized migrants.
In response, Canadian Prime Minister Justin Trudeau announced retaliatory measures on February 2, 2025. Canada imposed 25% tariffs on CA$155 billion worth of U.S. goods, with the first phase affecting CA$30 billion starting February 4, and the remaining CA$125 billion scheduled for implementation 21 days later.
Amid these economic disputes, President Trump suggested the annexation of Canada, proposing it become the 51st U.S. state and he was being serious. He argued that such a move would benefit both nations economically and enhance security. This proposal was met with strong opposition from Canadian officials who viewed it as a threat to their sovereignty. Saying their Sovereignty is non-negotiable.
But based on the unpredictable nature of the USA, Canada is trying to rely less on the U.S. for trade, especially after the U.S. added high taxes (tariffs) on steel and aluminum. Canada is now shifting its energy exports to Asia.

The Trans Mountain Pipeline Expansion (TMX), which became operational in May 2024, has significantly increased Canada's capacity to export crude oil from the Pacific coast, nearly tripling the volume from 300,000 barrels per day to 890,000 barrels per day. Early data indicates that this expansion has enabled Canada to become a notable oil supplier to the Indo-Pacific region, with China emerging as a primary importer.

On the natural gas front, Canada is pushing LNG exports, aiming to tap into Asia’s growing demand. However, some experts argue its impact on emissions and energy security might be overstated.

And to also strengthen its trade with Europe, Canada’s Trade Minister, Mary Ng, visited Brussels in early 2025 to discuss better trade opportunities and ways to strengthen economic ties with the EU.

Canada forming an alliance with the EU is not new. Canada has been part of a trade deal with Europe called CETA since 2017. This deal allows Canada to sell goods to Europe with lower taxes. So since 2021, about 65% of Canadian exports to Europe were using CETA benefits, an increase from 52% in 2018. This means more Canadian businesses are trading with Europe instead of depending only on the U.S.

Prime Minister Justin Trudeau has emphasized the importance of reliable alliances and trade agreements in the face of protectionist measures from traditional partners. During meetings with European leaders, both parties underscored their commitment to upholding international law and fostering economic cooperation.

In Fact, the EU and Canada have signed a Mutual Recognition Agreement (MRA) under CETA, making it easier for architects to work across borders. This first-of-its-kind deal streamlines the recognition of professional qualifications, requiring architects to have at least 12 years of education, training, and practice, plus a 10-hour online course for EU architects working in Canada.

By removing bureaucratic barriers, this agreement opens new opportunities for architects and sets the stage for similar deals in other professions.

Apart from partnering with the EU, Canada has also pulled a bold move to supercharge its small business owners, recognizing that SMEs are the backbone of its economy—making up a staggering 99.8% of all businesses and employing nearly two-thirds of the private workforce. But rather than just acknowledging their importance, Canada is putting real money on the table to help these businesses go global.

And here’s where it gets exciting: The CanExport SMEs Program offers up to $50,000 to help businesses break into international markets, covering half of their eligible costs. But if you’re looking to take things a step further, the CanExport Innovation Program raises the stakes with up to $75,000 in funding for businesses, research centers, and academic institutions that want to collaborate on groundbreaking projects with international partners.