Pivot from US not easy as ABC for SA or Canada

While the US continues to antagonise South Africa, Canada and other strategic trade partners, even proponents of a pivot away from the US to mitigate exposure to trade fragmentation say it could prove economically and politically challenging.

Jen Hassum, executive director of the Broadbent Institute, told Business Times that Canadian Prime Minister Mark Carney is seeking trade, economic and political talks with countries around the world, and that Canada has historic ties with South Africa.

“That’s a very good starting point, and to look and evaluate what our industries are and what each of us has to offer each other, and frankly, there is a lot. [It is also important] to also do it on a fair footing.

“One would hope that it’s not just allowing Canadian companies to enter the South African market only to act like mini-Trumps, but for there to also be real respect and reciprocity between our nations, and I do believe that that is what is on the table at this moment in Canada.”

The Broadbent Institute is a Canadian progressive think tank dedicated to social democracy and economic equality. US President Donald Trump has expressed hostility towards Canada, entering a trade war with the partner and purporting to rename Lake Ontario “Lake America”.

In 2025, the Canadian government launched its first “Africa Global Strategy”, in which it said: “In a time of global economic and geopolitical uncertainty, Canada must seize opportunities to strengthen economic and national security, including by diversifying its markets; improving supply chain resilience; enhancing peace, security and human rights; and contributing to efforts that build and maintain corridors for critical goods, while promoting local benefits in Africa.”

At the same time, hostility towards South Africa has continued. The US last week announced visa restrictions on foreign nationals deemed complicit in “race-based uncompensated land seizures”, renewing tensions between Washington and Pretoria .

Hassum said $1.3-trillion worth of US goods cross the Canadian border annually, or $3.6bn daily. About 80% of Canadian exports cross the border, mostly produced by US or multinational companies. Under the US-Canada-Mexico trade network, a new vehicle may cross borders eight to 10 times before being completed.

“Part of the fallacy is the concept that you can just tariff to relocate these branch plants. A really good example of this is aluminium. That’s one of the sectors targeted for tariffs, even in Trump’s first term.

“But the idea that you can just get these aluminium plants to just relocate south of the border is a wild notion. They are strategically located in Canada near infrastructure for the generation of electricity that is cheap and green.