KUALA LUMPUR, Sept 5 — The ongoing trade tensions between the United States (US) and Canada highlight the growing need for countries to strengthen economic resilience by diversifying their international trade and supply chains.
Associate Professor of History at Frostburg State University, Dr. Haiyun Ma said Washington’s imposition of 50 per cent tariff on roughly CAN$27.6 billion worth of Canadian goods reflects an international trading environment that is becoming increasingly fragmented and unpredictable.
“If Canada, one of America’s closest allies and most economically integrated trade and supply chain partner, can face almost 50 per cent tariff, then you can imagine other allies will logically begin developing alternatives.
“I think all countries need to diversify their international trade and supply chains as much as possible, because you need to build a more diversified and hedged global trading system in order to avoid excessive dependence on a single superpower like the United States or other countries, even if this superpower is your neighbour,” he said during Bernama TV’s programme Bernama World on Friday.
Ma was commenting on the latest trade tensions between the US and Canada which saw Washington impose 50 per cent tariffs on roughly CAN$27.6 billion worth of Canadian goods on Aug 22.
In response, Ottawa announced that it will impose tariff of 15 to 50 per cent on CAN$27.6 billion (US$20 billion) worth of United States (US) imports starting Sept 8.
“It signals that Canada will not simply submit to unilateral US demand or pressure,” Ma said.
He opined that Canada should avoid allowing the dispute to become a tariff war with the US and instead broaden its trade partnerships, particularly with countries in Asia and Europe.
At the same time, he said Canada could strengthen the capabilities and resilience of its domestic companies to better withstand external trade pressures.
