Canada targets Australia trade boost amid Trump’s tariffs on exports

Canada has set its sights on Australia as a key trade partner amid escalating tensions with the US, after President Donald Trump hit America’s northern neighbour with 35 per cent tariffs.

Canada has honed in on Australia as a prime partner to beef-up trade with in the wake of US President Donald Trump slapping his northern neighbours with 35 per cent tariffs, with the Canadian High Commissioner making a pitch for increased links Down Under across defence, mining and aerospace.

Julie Sunday, the High Commissioner for Canada in Australia, wants to make the Lumberjack Country one of Australia’s most valuable allies by strengthening trade ties between the Commonwealth countries, amid Trump’s War on Canada.

Ms Sunday told The Telegraph she was interested in ramping up exports into Australia, nominating defence, security, aerospace and mining as sectors where the two nations could strengthen ties.

Asked about uncertainty being triggered within Canada by Trump’s tariffs, and what it meant for their trade relationship with Australia, Ms Sunday said “Canada continues to actively pursue trade diversification, and Australia is an important partner”.

“We share deep people-to-people ties, a commitment to democratic values, and a strong belief in rules-based international trade,” she said.

She added work was underway to capitalise on a major trade mission which occurred earlier this year, in which 220 Canadians representing more than 140 companies travelled to Australia to pitch their wares.

Canada's High Commissioner to Australia, Julie Sunday. Picture: Supplied

“It reaffirmed Canada’s strong interest in deepening economic ties with Australia across sectors critical to both our countries,” she said.

While the main exports from Canada to Australia in 2024, worth $3.1 billion, were machinery, precious metals, and vehicles and parts, Ms Sunday said that mission had identified new sectors where trade could be ramped up amid Trump’s buffeting tariffs.

“These include clean technology, agrifood, mining, digital services, and AI. In addition, we see great potential in the defence/security and aerospace sectors,” she said, adding two-way trade could also be ramped up for “nation-building” infrastructure projects.

“Canadian businesses are well-placed to expand their footprint and contribute to Australia’s sustainable and innovation-driven growth.”

She said two-way investment was another growth area, after Canada directly invested $66.2 billion into Australia in 2024, making Australia the top investment hub for Canadian finance in the Indo-Pacific.

US President Donald Trump has followed through on his threat of heavy tariffs on Canada. Picture: Andrew Caballero-Reynolds / AFP

Australia meanwhile pumped $32.1b of investment into Canada in the same year.

Coalition trade spokesman Kevin Hogan talked up the benefits of strengthening trade both ways, saying: “If they think they’ve got good maple syrup and whiskey in Canada, wait until they taste Australia’s”.

Ms Sunday’s comments come after US President Trump last week followed through on his threat of heavy tariffs on Canada, settling on a rate of 35 per cent.

The ongoing fights over tariffs has also been joined by the President publicly musing in his second term that Canada should become the 51st state of the US, as relations between the two countries hit a nadir.

Links with Canada among Australia’s political class include former Prime Minister Malcolm Fraser, whose paternal grandfather was Canadian, while current Australian Greens leader Larissa Waters was also born in the Land of the Maple Leaf.

Originally published as Canada targets Australia trade boost amid Trump’s tariffs on exports