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Amid trade crisis, Canada must not waver on climate commitments
This article was originally published in The Gazette.
The tariff threats on Canadian imports by the United States, coupled with its withdrawal from the Paris Climate Agreement, present a dual challenge for Canada’s economic resilience and environmental commitments. These actions not only strain the long-standing trade relationship between the two nations but also complicate Canada’s path toward sustainable development.
The U.S. initially announced 25 per cent tariffs on almost all Canadian goods entering the U.S., and 10 per cent for energy products. Canada hit back with $30 billion in tariffs on an array of imported U.S. items, including beverages, cosmetics and paper products. A last-minute agreement between President Donald Trump and Prime Minister Justin Trudeau has resulted in a 30-day delay. This pause, aimed at addressing border security concerns, offers a brief window for negotiation, but uncertainty remains over the long-term implications for trade.
This escalating trade conflict threatens to disrupt supply chains, increase costs for consumers and potentially lead to job losses in affected sectors. The interconnected nature of the U.S. and Canadian economies means these tariffs could have ripple effects, forcing Canadian companies to rethink their trade strategies.
At the same time, the U.S. withdrawal from the Paris Agreement further complicates matters. The absence of a co-ordinated North American strategy could undermine Canada’s long-term sustainability efforts. The U.S. exit may lead to increased greenhouse gas emissions south of the border, affecting regional environmental quality and making it harder for Canada to achieve its own climate targets. Moreover, reduced investment in clean technology and uncertainty in climate policies may hinder Canada’s efforts to lead in the green economy.
For Canadian businesses, this new reality presents multiple challenges. Higher export costs due to tariffs make Canadian products less competitive in the U.S. market. Simultaneously, diverging regulations between the two nations may allow American businesses to operate more cheaply, putting Canadian firms at a disadvantage. Investor concerns about instability in North American climate policy could also redirect funding to regions with stronger commitments to sustainability, such as Europe and Asia.
To navigate these challenges, Canada must take decisive action. A flare stack burns off excess gas at a processing facility near Crossfield, Alta. Canada must double down on its investments in sustainable industries, writes Concordia public scholar Sarah Farahdel. Jeff McIntosh The Canadian Press First, it must diversify its trade partnerships by reducing reliance on the U.S. market and expanding agreements with Europe, Asia and Latin America. Strengthening trade deals such as the Comprehensive Economic and Trade Agreement (CETA) with the EU and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will be crucial.
Second, Canada must double down on its investments in sustainable industries, positioning itself as a leader in clean technology and renewable energy. Encouraging private and public investment in climate innovation, such as carbon capture, hydrogen and green infrastructure, will reinforce Canada’s competitive edge.
Additionally, Canada must enhance its domestic competitiveness by implementing policies that support innovation and productivity within key industries while offering strategic tax incentives for businesses adopting low-carbon solutions.
Despite these challenges, Canada is well-positioned to take the lead on sustainable trade and economic policy. With the U.S. stepping back from climate commitments, Canada has a unique opportunity to assert itself as a global sustainability leader by strengthening its role in international climate agreements, building a cleaner economy, attracting global investment and becoming a hub for green technology and innovation.
If Canada successfully navigates trade uncertainties, strengthens green industries and reinforces its commitment to climate action, it will secure a stronger, more resilient future — both economically and environmentally.
The combination of U.S. tariffs and the Paris Agreement withdrawal presents significant risks, but it also offers Canada the chance to lead by example. Now is the time for bold leadership and decisive action. By leveraging its strengths, forging new partnerships and committing to sustainability, Canada can emerge from this crisis as a global economic and environmental leader.
This is not just a challenge — it’s an opportunity to redefine Canada’s place in the world.
Sarah Farahdel is a public scholar who earned her PhD in the department of information systems engineering at Concordia University, specializing in sustainability frameworks. She has acquired nearly 10 years of industry experience across various sectors.
